Specific incentives
1. Land lease cost, cost exemption and reduction:
1.1 Land lease cost and form of payment:
The price for land lease is US$0.5 per square meter a year with VAT inclusive.
Payment mechanism: the payment for the land-lease cost can be done annually, one payment for 10 years or payment is done one time for the whole project duration. Potential investors are encouraged to pay one time for the whole project implementation period.
1.2 Exemption and reduction:
The exemption and reduction of the land lease cost shall be applied as follows:
No payment is done during the process of factory construction (maximum is for 24 months).
After completion of factory construction ends, the investors shall be exempted for two more years.
After terminating the exemption period, the investors shall be granted a fifty (50) percent reduction for the two subsequent years.
If the investors pay one time for 10 years, the land lease money shall be reduced ten (10) percent.
If the investors pay one time for the whole project implementation duration, the land-rent price shall be reduced 60 percent.
The project has total investment capital of over one (1) million USD, or stably use over 500 labourers in a year, the investors shall be granted ten (10) land-lease money.
The project has total investment capital of over five (5) million USD, or stably use over 1,000 labourers in a year, the investors shall be granted fifteen (15) land-lease money.
1.1 Other kinds of Services fee:
1.1.1 Fee for Infrastructure utility:
The fee is US$0.25 per square meter per year. It shall be reduced 40 percent if it is paid one time for the whole project implementation period (from 30 to 50 years).
1.1.2 Fee for waste water treatment:
The waste water shall be treated again by the waste treatment plant of the Industrial Park: The fee is applied as follows:
i) If factory discharging waste of Category A, the factory only pays for environment fee.
ii) If factory discharging waste of Category B, the fee of US$0.15 per cubic meter shall be paid.
iii) If factory discharging waste of Category C, the fee of US$0.35 per cubic meter shall be paid.
1.1.3 Telecommunication, electricity and water:
The price shall be applied equally for both domestic and foreign investors when investing in the industrial park. The price is stipulated by the Government.
2. Kinds of tax
1.1 Corporate income tax (CIT):
Both domestic and foreign investors shall be applied the same rate.
1.1.1 CIT Rate:
The rate of ten (10) percent shall be applied for a period of fifteen years to export processing projects from the time when the project commences its production or business activities.
The rate of fifteen (15) percent shall be applied for a period of twelve years to production projects from the time when the project commences its production or business activities.
The rate of twenty (20) percent shall be applied for a period of ten years to projects operating in the service sector from the time when the project commences its production or business activities.
After ending the tax incentive period as mentioned above, the rate of twenty-eight percent (28%) shall be applied for all kinds of projects.
2.1.2 CIT exemption and reduction:
The Export Processing enterprises shall be exempted from CIT for the four (4) years commencing from the time when their operations start to earn profits and shall be granted a fifty (50) per cent reduction for the seven (7) subsequent years.
The Production enterprises shall be exempted from CIT for the three (3) years commencing from the time when their operations start to earn profits and shall be granted a fifty (50) per cent reduction for the seven (7) subsequent years.
The Service enterprises shall be exempted from CIT for the two (2) years commencing from the time when their operations start to earn profits and shall be granted a fifty (50) per cent reduction for the six (6) subsequent years.
2.3 Profit remittance tax: fully exempted.
2.4 Import tax (equipment and machine):
Duty free is applied for machines and equipment to form fixed assets of enterprises to the projects in which investment is specially encouraged or invest in the places with difficult socio-economic conditions.
Import tax (materials or semi-products):
To the projects in which investment is specially encouraged, free import tax applied for the first five years to materials or semi-products which
3. Labour incentives:
In the case of using more than 500 labourers, the enterprises shall be supported a part of training fees for providing training workers. All support shall be done via the vocational training centers. Each worker shall be supported not exceed of VND500,000 to VND1,000,000.
4. Administrative procedures:
The mechanism of ONE STOP PROCEDURE shall be applied in granting investment license.
IPC Ben Tre shall be the only provincial contact person to support for all potential investors and enterprises. Contact us at the below address.
Procedures for insurance of investment certification:
5.1 Registration for insurance of investment certification:
Project document shall be made in three (3) copies, and at least one (1) copy shall be an original.
Project document shall include:
i) An application for registration of an investment certification;
ii) The join venture contract and the charter of a joint venture enterprise, or the charter of an enterprise with 100% foreign owned capital; and
iii) A document verifying the legal status and the financial report of parties.
The time of receiving investment certificate is within 10 days as a maximum.
5.2 Evaluation for issuance of investment certification:
Project document shall be made in five (8) copies, at least one (1) copy shall be an original.
Project document shall include:
i) An application for an investment certification;
ii) The join venture contract and the charter of a joint venture enterprise, or the charter of an enterprise with 100% foreign owned capital, or a business cooperation contract;
iii) Technical economic explanatory statements; and
iv) A document verifying the legal status and the financial report of parties.
The time of granting investment certificate is within 20 days as a maximum. All documents shall be submitted to the Industrial Park Authority for taking into account.
In the process of treating investment papers, please kindly contact IPC Ben Tre for further clarification.
6. Some basic price and cost for reference
Some basic price of commodities and services in Ben Tre province are as follows (US$1~ VND16,000):
6.1 Water price: between VND 3,300 and VND4,800/m3.
6.2 Electricity price: For 110 KVA and above: i) normal hour utility: VND830 per kWh; ii) low rush hour utility: VND440 per kWh and iii) rush hour utility: VND1,410 per kWh.
6.3 Telecommunication: approximately 400,000 VND including installment charge (not a phone set). Monthly-use fee shall be paid depending on the number of minutes called. For instance, local call will be 120VND per minutes, 700VND/minute for inter-district call and international call is up to the destination, approximately 0.40 - 0.6 US$ per minute, (0.040 - 0.06 US$/minute for 6 second block). Users can use internet phone card for cheaper price, or use other cheap services including 171, 177, 178, 179...). Internet, Email and ADSL services are available and at cheap price.
6.4 Transport by container barge: from 1 - 1,5 million VND for one 40-feet container (from Ben Tre to HCMC port); transport by truck: 10-13 metric tons for each truck, price is between 1.5 and 2 million VND per truck.
6.5 Labour wage and insurance: the minimum wage is VND710,000/month for unskilled workers. Skilled workers are paid based on the his/her qualification. Social and health insurance is totally 23 percent, of 17 percent is paid by Employer and 6 percent is paid by Employee.
6.6 Building/house for rent is available. The rate is between US$500-800 for five-to-six room building/house.
6.7 Hotels: hotel is available. The rate is between VND200,000-300,000 per night.
The Only Provincial Contact Person (for any further information and clarification)
IPC Ben Tre:
Name: Mr. Nguyen Truc Son - Director
Address: 28 Le
Tel: (84-75) 817358, 825340
Fax: (84-75) 825340, 817358
Email: ipcbentre@vnn.vn; bentreipc@yahoo.com