Binh Dinh province offers top tax incentives to attract investors

The central coastal province of Binh Dinh is offering top tax incentives, developing infrastructure, and reducing administrative procedures to lure investors.

The province is upgrading infrastructure to welcome investors, especially 15,300 hectares of economic zones (EZs) and industrial parks (IPs), and 2,940 hectares of industrial clusters. Investors from Japan, South Korea, Germany, the U.S., Thailand, Singapore, and Vietnam have been studying Binh Dinh to set up shop.

Binh Dinh offers the country's most preferential tax policies to investors in Nhon Hoi EZ, particularly Becamex VSIP Binh Dinh IP, apart from its own incentives, said Binh Dinh Chairman Pham Anh Tuan.

Firms are subject to corporate income tax (CIT) of 10% in the first 15 years, tax exemption in four years since there are taxable incomes, and 50% reduction in tax payment in the next nine years, versus the normal CIT of 20%.

Besides, investors are exempted from paying import taxes in the first five years for materials and semi-finished products that are not produced in Vietnam or do not meet quality standards. Investors can enjoy additional incentives per sector, including land rent exemption, tax reduction, and import tax exemption, he added.

There are over 8,000 companies in Binh Dinh operating in several sectors, including 20.5% in industrial production, 18.3% in construction, 28.2% in commerce, 7.1% in transportation, and others. Most industrial firms carry out raw processing and are improving their capacities to bring out refined products.

The legal framework, administrative procedures, and local support are key factors for investors, said Michael Wekezer, a lawyer from the Ho Chi Minh City office of Roedl & Partner, at a recent investment promotion event in Binh Dinh. He added Vietnam’s investment policies are attractive, flexible, and simple, and suited to German businesses.

Nguyen Thanh Hai, director of the provincial Department of Planning and Investment, said investors should contact the management boards of EZs and IPs to invest there, or the provincial Department of Planning and Investment to invest outside EZs and IPs.

In case investors rent areas already with facilities, like Becamex, investment certificates can be issued in 15 days or fewer, Hai said. If the areas are not equipped with facilities, the issuance of investment certificates can take up to 25 days, below the government’s rule of 32 days.

The province is committed to ensuring transparency in the timeline and profiles with detailed instructions, while authorities accompany firms in administrative procedures, he emphasized.

The province’s planning features seven IPs and Nhon Hoi EZ, which are ready to provide 15,000 hectares of land to investors, said provincial Party chief Ho Quoc Dung.