INVESTMENT ENVIRONMENT OF BINH PHUOC PROVINCE

Friday - 22/05/2020 09:40 4003
(BP Portal) - Currently, the land fund for industrial production purposes is available in the advantageous traffic positions, with 13 industrial parks approved by the Prime Minister, covering an area of 4,686 ha and 01 economic zone in Hoa Lu International Border Gate with area of 28,364 ha.
61d8f9b4b22748791136The infrastructure system of the industrial parks and clusters is increasingly perfected to attract domestic and foreign investment. The economic mechanism transfers properly with high growth rate in many industries and sectors. The quality of trained human resources is improved.

The physical and spiritual life of the local people is significantly improved. Binh Phuoc is characterized by young, dynamic, creative, and hardworking labor force, satisfying the production and business demand of the enterprise and investors.

In order to attract and best support domestic and foreign investors, the People’s Council of Binh Phuoc Province issued Resolution No. 14/2018/NQHDND to amend and supplement Resolution No. 31/2017/NQ-HDND on investment encouragement and incentive policy in Binh Phuoc province.

The main contents of the Resolution are as follows: Land use fee exemption and reduction for border-gate economic zones (according to Decision No. 72/2013/QD-TTg dated November 26, 2013 by the Prime Minister) Investors in the economic zone, if with the land granted by the State, are entitled to exemption or reduction of land use fee as follows:

Land use fee exemption and reduction for border-gate economic zones (according to Decision No. 72/2013/QD-TTg dated November 26, 2013 by the Prime Minister).

Investors in the economic zone, if with the land granted by the State, are entitled to exemption or reduction of land use fee as follows:

- Land use fee exempted for the projects with special investment priorities.

- Reduction of 50% of land use fee to be paid to the state budget for the projects in the sectors with investment priorities.

- Reduction of 30% of the land use fee to be paid to the state budget for the investment projects which do not belong to Item 1 and Item 2 above.

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2. Priorities for projects with investments for expansions

a) Enterprises with the investment projects operating in sectors, locations with corporation income tax priorities, when expanding the production scale, capacity, innovating production technologies, shall be entitled for tax priorities for the remaining operation duration (if any) or tax exemption, tax reduction for the additional income from expansion for the tax exemption, tax reduction duration applied for the new investment projects in the locations, sectors with corporation income tax priorities if meeting the following criteria.

b) Criteria of investment expansion project - Original price of the fixed assets increases when the investment project is completed and put into operation of at least from 20 billion VND for the expansion investment project in the sector receiving corporation income tax priorities according to this regulation or from 10 billion VND for the expansion investment projects implemented in the locations with difficult socio-economic conditions or especially difficult socio-economic conditions according to the regulations of the law on corporation income tax.

 - The proportion of original price of fixed asset increases at least 20% compared to the total original price of the fixed assets before investment.

- The design capacity increases at minimum from 20% compared to the original design capacity before the investment.

In case the enterprise is under operation and has the investment to upgrade, replace, innovate the technologies of the project operating in sectors, locations with tax priorities according to these regulations but fails to meet one of three criteria mentioned above, then the tax priorities shall be implemented according to the project under operation for the remaining duration (if any).

In case the enterprise receives the full tax priorities according to the expansion investment subject, then the additional income due to expansion investment shall be accounted separately; in case it is not accounted separately, then the income from the expansion investment activity shall be defined according to the proportion of original price of the fixed assets of the new investments put into production, business per the original price of fixed assets of the enterprise.

Duration for tax exemption, tax reduction is calculated from the year that the expansion investment project puts into production and business with income; in case there is no taxable income in the first three years, since the first year with the revenue from the expansion investment project, the time for tax reduction, tax exemption shall be calculated from the forth year.

These priorities are not applied for the cases of expansion investments due to merging, acquisition of the enterprise or investment project under operation.

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3. Sectors, industries with special investment preferences

3.1. High technology, information technology, supporting industry

3.2. Agriculture
 
3.3. Environmental protection, infrastructure construction

3.4. Culture, social, sports, health (Implementing according to Decision No. 14/2018/NQ-HDND dated 14/12/2018 of People’s Council of Binh Phuoc Province)

 4. Sectors, industries with investment preferences

4.1. Science and technology, electronics, mechanical, material production, information technology

4.2. Agriculture

4.3. Environmental protection, infrastructure construction 4.4. Education, culture, social, sports, health

4.5. Other sciences and industries (Implementing according to Decision No. 14/2018/NQ-HDND dated 14/12/2018 of People’s Council of Binh Phuoc Province)

4.6. List of locations with investment preferences a) Extremely difficult socioeconomic locations, including districts: Loc Ninh, Bu Dang, Bu Dop, Bu Gia Map, Phu Rieng. b) Difficult socio-economic locations, including districts, towns: Phuoc Long, Binh Long, Hon Quan, Chon Thanh, Dong Phu and Industrial Parks established according to regulations of the Government

4.7. Procedures for handling administrative procedures on investments Implementing according to Decision No. 14/2018/NQ-HDND dated 14/12/2018 of People’s Council of Binh Phuoc Province.

 5. Commitment on shortening the processing period and settlement of administrative procedures and applying one-door mechanism to receive and process the records and procedures in the Public Administration Center.

This is the most outstanding new point. Particularly, the period for processing the administrative procedure in investment inside and outside the industrial parks is shorten, at most only equal to 1/3 of period prescribed by the Central Authority, etc.

With the guideline of “Enterprise’s success is our success”, Binh Phuoc always welcomes all domestic and international enterprises and investors to invest in the province.

The provincial authority commits to always accompany with the investors during their production and business activities, creating the best conditions for the investors to produce and business with the highest performance./.

Author:  T.T (BINH PHUOC PROVINCE INVESTMENT PROMOTION HANDBOOK)

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