Investors of Binh Industrial Zones shall receive preferences from the Government of Viet Nam and Quang Binh province.

The People’s Committee of Quang Binh province has an engagement to taking space, to construct infrastructure architecture, to ensure public order and societal safely, to create a fairly invested environment, to strengthen the investors. Quang Binh province ensures to perform rules of investment incentive and promotion completely, favorably, stably and promptly.

In the case, the new changed rules in the investment laws that handicap for the investors, the People’s Committee has responsibilities for solving to ensure the investor’s right through out the duration of the next implementation of the project.

In the case, the new rules of the Government of Viet Nam is more favorable than the applied ones for the investors, they will be applied by the new rules of the Government of Viet Nam

The detailed rules:

1. General investment incentive for both and domestic and foreign investors

1.1. Construct essential infrastructure

• If projects are investing into Hon La industrial zone, the People’s Committee of Quang Binh province shall invest invested essential technical infrastructure such as, electricity, water supply, and traffic way to the factories.
• If investors have engagement to constructing infrastructure by their capital, they are refunded gradually all expenses of constructing.

1.2. Support space-taking and surface-smoothing expenses

• If investment projects of land rent, depending on their scale and property, the People’s Committee shall support partially or entirely space-taking expenses.
• Support surface-smoothing expenses

- If investment projects with capital less than 50.000.000.000 VNĐ, the People’s Committee shall support maximum of 30% of surface-smoothing expenses as approved estimation but total volume must be less than 1000.000.000 VNĐ per one.

- If investment projects with capital more than 50.000.000.000 VNĐ, the People’s Committee shall support maximum of 50% of surface-smoothing expenses as approved estimation but total volume must be less than 2.000.000.000 VNĐ per one.

1.3. Support employee-training fee

Investment projects are supported native labour-training fee for the first time from the People’s Committee.

• Investment projects using from 100 to 500 labours are supported from 300.000 to 500.000 VNĐ per one.
• Investment projects using over 500 labours are supported from 700.000 to 1000.000 VNĐ per one.
• Investment projects using high technology are supported 1.000.000 VNĐ per one (Conducted in detail)

1.4. Investors of infrastructure business for industrial zone

Advertising expenses on means of public local information to serve encouraging and attracting investment are supported 50% by the province budget within 1 year from the day of implementing the project.

5. Rewards for investment promotion

To reward for enterprises, associations, and individuals that have successful in attracting investors’ attention in Binh Industrial Zones.

• Reward requirements

- Projects investing in Quang Binh province and that are included in List A that is attached to the Decree No 35/20002/NĐ-CP dated on March 29, 2002 by the Government of Viet Nam

- Projects investing in Quang Binh province are in the list of project promotion or special promotion that is attached to the Decree No 24/2004/NĐ-CP by the Government of VietNam. This decree defines in detail law on foreign investment

• Reward levels
  
  Reward is 1/1000 of investment capital volume and must be less than 50.000.000 VNĐ per project.
  

2. Investment incentive for domestic investors

2.1. Preferences of area and business field

• Projects investing into fields that included in List A
• Projects investing into industrial zone and that are included in List B that is attached to the Decree No 35/2002/NĐ-CP updated on March 29, 2002 by the Government of Viet Nam
• Investment into hard mountainous areas in List C that is attached to the Decree No 51/1999/NĐ-CP dated on July 08, 1999 by the Government of Viet Nam

2.2. Exemption, reduction of land and waters rent

• Projects that are included in List A and using an average of over 20 labours shall enjoy a 13-years free of land and waters rent from the time of signing the land-renting contract.
• Projects that are included in List A shall enjoy a free of land and waters rent in the duration of 11 years from the day of signing the renting contract.
• Projects investing into other business and fields shall enjoy a free of land and waters rent in the duration of 7 years from the day of signing the renting contract.

2.3. Exemption, reduction duration of enterprise income tax

• Projects that are included in List A or are using the average of above 20 labours per year shall receive the exemption of enterprise income tax in the duration of 3 years and 50% reduction for next year.
• The following projects shall be offered the exemption of enterprise income tax in the duration of 3 years and the 50% reduction for subsequent years.

a- Projects investing into the fields in List A,
b- Projects using the average of above 20 labours per year.

• Other projects using the average of above 20 labours per year shall receive the exemption of enterprise income tax in the duration of 2 years and 50% reduction for 2 subsequent years.

2.4. Exemption and reduction duration of business income tax for BOT and BTO projects

Investors of projects in form of building – business – over handing contracts (BOT) or construction – over handing – business contracts (BTO) shall enjoy enterprise income tax exemption within 4 first years after the profits are generated from the business and 50% reduction for 9 subsequent years

2.5. Exemption, reduction of enterprise income tax for extensible and deep investment projects

Investors of extensible and deep investment projects that are included in List A shall be given preferences of exemption, reduction of enterprise income tax for profits which are generated from this investment within 3 years and 50% reduction for 5 subsequent years.

3. Investment incentive for foreign investors

3.1. Price for renting land and waters

Price for renting land and waters are the lowest level of current decrees except some areas to have an advance.

• Price for renting land

a- For hamlets surround city and town: 0,1 USD/m2 per year
b- For plain hamlets: 0,06 USD/m2 per year
c- For midland hamlets: 0,01 USD/m2 per year-
d- For land outside city, residential and specific areas, which need improving before agriculture, silviculture and aquiculture producing: 50 USD/ha per year. Especially for rocky mountain, bare hull and excluded industry production, services, tourism, trade, minerals exploiting projects.-

• Price for renting waters

a- For lake and river area, unit price is 75 USD/ha per year except projects whose infrastructure on city waters
b- For seawaters, unit price is 1500 USD/km per year. If rented area is not fixed, the unit price is 1500 USD/km per year.
Renting price is unchanged for 7 years. If increasing, adjusted amount does not exceed 15% in comparison with previous adjustment.

3.2. Exemption, reduction of land and waters rent

• Free of land and waters rent within 11 years from base completion to start operating.
• Investing into growing plants is exempted 90% of renting cost

3.3. Exemption, reduction of enterprise income tax

Exemption within 4 years and 50% reduction for 4 subsequent years after the profits are generated from the business

3.4. Goods and service price

Offered water price and other services under authorization of the People’s Committee of Quang Binh province are the same as the prices for domestic investors on the same fields in the industry zone.

(Quang Binh people's committee has allowed the Department of Planing and Investment to promulgate (adjust) the encouraging and incentive policy which is more favorable to the investors. In the detailed case, the investment projects that is applied the old policies will get the new incentive policies)