State supports Vietnam-RoK Incubator Park

Hanoi (VNA) - The Ministry of Finance issued a circular to regulate the State's mechanisms, incentives and support at the Vietnam-Republic of Korea Incubator Park (KVIP) in Mekong Delta Can Tho city.

Circular No. 214 also outlines taxes and the State's investment credit for pilot projects. The regulation will be applied for the incubator park, legal enterprises, co-operatives, collaborative units, science and technology organisations, and individuals.

Special policies applied to this incubator park include preferential policies for businesses and investment projects.

In addition to preferential imports, incorporation and value-added taxes, businesses will also receive support in technology development and human resource training. The KVIP will install research equipment to develop farm produce, seafood processing and mechanical manufacturing.

According to the circular, projects that are included in the appendices – or on the list of projects that qualify for credit loans issued together with Decree No. 75 – qualify for capital loans from the Vietnam Development Bank.

Investors that qualify for loan guarantees as stated in Article 3 of Decision No. 3 can borrow capital from credit organisations in Vietnam, with guarantees from the Vietnam Development Bank.

The circular includes a tax-free policy on the following items: facilities, equipment, and transportation that have not been produced in Vietnam; technologies that have not been developed in Vietnam; and documents, books, newspapers, scientific journals and electronic sources of information on science and importing technologies that directly serve incubator park activities.

Enterprises that open new projects in the incubator park or apply advanced technology to projects in the park receive a 10 percent deduction on their income taxes over fifteen years. They get four years tax-free, and a 50 percent deduction on the total amount of taxes over the following nine years.

Personal income taxes, salaries, incurred expenses for scientists, experts and researchers follow the Avoidance of Double Taxation Agreements and the Law on Personal Income Tax.

The circular is effective from February 14 to December 31, 2020.

The Korea-Vietnam Incubator Park in Tra Noc 2 Industrial Park in O Mon District opened in November.

The facility is part of a partnership between the Republic of Korea (RoK) and Vietnam regarding industrial, agricultural and technological capacities.

Spanning 13,000 square metres, the two-block complex is armed with modern devices designed for the research and development of the city's three major sectors: processing, aquaculture and mechanical engineering.

The incubator park is capable of accommodating 40 foreign and local businesses that specialise in agriculture, aquaculture and mechanical engineering.-VNA