Exemption from land rent to attract investment in priority industries

Daeduck Vietnam Co., Ltd., Ba Thien Industrial Park (Binh Xuyen) operates effectively in the field of electronic component manufacturing. Photo: Nguyen Luong

To enjoy the support mechanism under Resolution No. 01 of the Provincial People's Council, projects must meet one of two conditions, including: Non-profit projects and projects in the list of types, scale criteria, and socialization standards decided by the Prime Minister.

The conditions for application are that the project is consistent with the provincial planning, sectoral and field planning, construction planning and local land use planning approved by competent authorities; the project is implemented and put into operation in accordance with the schedule, objectives and investment scale specified in the Decision approving the investment policy and simultaneously approving the investor, the decision approving the investor, the investment registration certificate and other documents of equivalent legal value approved by competent authorities and relevant legal provisions.

After reviewing, the resolution classifies the land rent exemption for projects in the two cities of Vinh Yen and Phuc Yen for 30 years and the remaining districts in the province for the entire duration of the project, not exceeding 50 years from the date of the land allocation decision.

In case the project is operating and leases land for less than 30 years, it will be exempted according to the actual land lease period; in case the project is operating and has enjoyed land rent exemption incentives higher than those prescribed in this resolution, it will continue to enjoy them for the remaining period; in case the incentives are lower than those prescribed in this resolution, it will enjoy them for the remaining incentive period from the effective date of the resolution.

The smart camera production line of MK Vision Factory in Thang Long Vinh Phuc Industrial Park (Binh Xuyen) is invested with modern equipment, meeting export requirements. Photo: Nguyen Luong

According to the data of the Tax Department of Region VIII, up to now, the whole province has nearly 130 enterprises receiving preferential land rent exemption and reduction according to the area and investment incentive sector with a total amount of nearly 280 thousand USD and 660 billion VND. Thereby demonstrating the companionship and sharing of the provincial authorities, helping to promptly remove difficulties and create conditions for business development.

Solum Vina Company Limited in Ba Thien 2 Industrial Park (Binh Xuyen) is an enterprise operating in the field of manufacturing modules providing power sources for electronic products, car chargers...

During its operation, the company has access to many preferential mechanisms and policies of the central and provincial governments such as applying a corporate income tax rate of 10% for a period of 15 years for high-tech enterprises; exemption of import tax on equipment, machinery, and specialized means of transport in the technological chain; reduction of land rent; support for training and improving skills for workers... Thanks to that, the company's revenue will reach more than 700 million USD in 2024, creating jobs for nearly 3,000 workers and paying the State budget more than 1.3 million USD.

Currently, the province's economic growth rate is quite high in the industrial direction, the investment environment is stable with many leading corporations in the world investing. From there, it has created prestige, brand, new position and strength for Vinh Phuc to continue the industrialization and modernization.

Persistently pursuing the goal of transforming the economic growth model from breadth to depth, the province strives to have 510 FDI projects with a total registered investment capital of more than 8.9 billion USD and more than 18,740 registered enterprises with a registered capital of over 310 trillion VND by the end of 2025.

To achieve the above goal, the province continues to implement many incentive mechanisms to attract investment, especially for priority industries such as supporting costs for preparing documents, procedures for introducing locations, detailed planning at a scale of 1/500 for projects in the province's investment promotion sectors; supporting infrastructure rental prices for secondary investors subleasing land in industrial parks invested with non-budgetary capital; supporting costs for preparing environmental impact assessment reports for direct investment projects in the investment promotion sectors in the period of 2017 - 2025; Resolution No. 57 of the Provincial People's Council on a number of specific measures to attract investment and support business development...

Regarding Resolution No. 01 of the Provincial People's Council, the Tax Department of Region VIII is required to issue documents directing functional departments and affiliated units to step up propaganda and dissemination activities, ensuring that taxpayers have access to, clearly understand the scope, subjects, time limits, procedures and benefits when implementing the State's support policies. Organize dissemination and guidance for specialized tax officers to implement the policy in accordance with regulations. Thereby, it not only contributes to supporting businesses with more financial resources and motivation to regain recovery momentum but also promotes the province's economic growth in the long term.

Ngoc Lan

Source: http://baovinhphuc.com.vn/Multimedia/Images/Id/127074/Mien-tien-thue-dat-de-thu-hut-du-tu-nganh-nghe-uu-tien