Draft decree on special economic zones (SEZs)
In late November 2016, the Government published for public comment a draft decree on industrial zones, export processing zones and economic zones which will replace Decree 29/2008/ND-CP (as amended from time to time).
The draft introduces a new incentive scheme, which includes CIT rate of 10% for 30 years, tax exemption for 4 years and tax reduction by 50% for the next 9 years, for the following projects:
- Projects in high preferential sectors implemented in economic zones located in areas with specially difficult economic-social conditions.
- Projects in economic zones with (i) investment capital of at least VND6000 billion disbursed in 3 years and (ii) more than 3,000 employees or total annual revenue of at least VND3 billion after 3 years of having revenue.
- Projects implemented in economic zones in economic-technical infrastructure sector, including power plants, water supply and drainage system, seaports, airports, new or clean energy, energy saving technology and oil refinery.
- High-tech manufacturing projects with investment capital of at least VND12 billion disbursed within 5 years of approval of the projects.
The draft decree also introduces three new types of SEZs, which shall be entitled to special incentives from the Government, including:
- Supporting industrial zones which specialize in supporting industries and services for these industries;
- Eco-industrial zones where there are cooperation in manufacturing for efficient use of resources and environment protection; and
- Industrial and urban service zones which include subzone such as industrial zones and urban service zones built for sustainabled evelopment of such subzones.
For more information, click Asia Counsel Insights 5 December 2016.
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