Samsung Electronics Vietnam, a wholly-owned subsidiary of Samsung Electronics of the Republic of Korea has received approval from the Government to raise its investment in northern Bac Ninh province from 1.5 billion USD to 2.5 billion USD.
According to the Bac Ninh provincial Department of Planning and Investment, the added capital will be invested in another plant with special incentives.
Accordingly, Samsung will continue to pay a preferential tax of 10 percent for 30 years, with corporate income tax exemptions for the first four years and tax reductions for the next five years. The normal corporate income tax in Vietnam is 25 percent.
Vietnam News quoted Head of the provincial Department of Planning and Investment Nguyen Quoc Chung as saying that the preferential tax was approved by the Government and related ministries and agencies.
The province had not offered additional incentives for the investors, he added.
Last year, Samsung got approval to increase investment to develop its complex in the province from 670 million USD to 1.5 billion USD.
The complex has produced mobile phones, laptops and other electronic products.
Since late 2009, the plant in the province's Yen Phong industrial zone has been operating efficiently.
In 2012, it produced more than 100 million products with export turnover of 12.7 billion USD.
In the first quarter of the year, the company earned export turnover of 5.2 billion USD.
In March, it also began the construction of a 3.2 billion USD high-tech complex in the northern province of Thai Nguyen.
When completed, the area will house Samsung's largest mobile phone factory, which is expected to provide jobs for thousands of local people.
It will also contribute billions of dollars to the country's annual export turnover, while boosting the development of the electronics support industry in the northern region of Vietnam .
Recently, six projects providing components for the complex have been licensed with capital totaling 100 million USD.
The Korean Group announced last year that it would expand operations in Vietnam and planned to spend 2.2 billion USD by 2020 to reduce production costs and transport fees.-VNA
According to the Bac Ninh provincial Department of Planning and Investment, the added capital will be invested in another plant with special incentives.
Accordingly, Samsung will continue to pay a preferential tax of 10 percent for 30 years, with corporate income tax exemptions for the first four years and tax reductions for the next five years. The normal corporate income tax in Vietnam is 25 percent.
Vietnam News quoted Head of the provincial Department of Planning and Investment Nguyen Quoc Chung as saying that the preferential tax was approved by the Government and related ministries and agencies.
The province had not offered additional incentives for the investors, he added.
Last year, Samsung got approval to increase investment to develop its complex in the province from 670 million USD to 1.5 billion USD.
The complex has produced mobile phones, laptops and other electronic products.
Since late 2009, the plant in the province's Yen Phong industrial zone has been operating efficiently.
In 2012, it produced more than 100 million products with export turnover of 12.7 billion USD.
In the first quarter of the year, the company earned export turnover of 5.2 billion USD.
In March, it also began the construction of a 3.2 billion USD high-tech complex in the northern province of Thai Nguyen.
When completed, the area will house Samsung's largest mobile phone factory, which is expected to provide jobs for thousands of local people.
It will also contribute billions of dollars to the country's annual export turnover, while boosting the development of the electronics support industry in the northern region of Vietnam .
Recently, six projects providing components for the complex have been licensed with capital totaling 100 million USD.
The Korean Group announced last year that it would expand operations in Vietnam and planned to spend 2.2 billion USD by 2020 to reduce production costs and transport fees.-VNA
