Thanh Hoa province, which boasts the Nghi Son Oil Refinery andPetrochemical Complex Project, will organise a trade promotionconference on October 23-24 to introduce its socio-economic developmentstrategy to 2020 with a vision towards 2030 as well as its incentivesfor foreign investors. Report by the Vietnam Economic News.
The Nghi Son Economic Zone (EZ) in Thanh Hoa province is expected tomake more breakthroughs in investment attraction in the coming timethanks to its potential and the upcoming record breaking 9 billion USDNghi Son Oil Refinery and Petrochemical Complex Project.
To attract a large amount of capital into the EZ, on October 23-24Thanh Hoa provincial People's Committee and the Ministry of Planning andInvestment will co-organise a forum on promoting investment in Nghi SonEZ and the surrounding areas.
The Nghi Son EZ islocated in the south of Thanh Hoa province, about 200km south of Hanoi.This is also a link between Vietnam’s northern, central and southernregions with southern Laos and northeastern Thailand.
The EZ is planned into many important sections on a total area of18.611ha, including Nghi Son Port, oil refinery and petrochemicalcomplex zone, Nghi Son Thermal Power Center, Industrial Zones and urbanareas. Of those, the Nghi Son Port has potentials to become a deep waterports capable of receiving ships with a capacity of up to 100,000DWT.
Not only having very favorable and strategic positionfor investment attraction, Head of Nghi Son EZ Management Board TranHoa said the EZ is also one of Vietnam’s five key EZs prioritized by thegovernment to build important infrastructure systems such asbreakwaters along with traffic, water and telecommunication systems.
By now, the Nghi Son EZ has attracted 74 investment projects,including 66 domestic projects with total registered capital of 93trillion VND and 8 foreign projects, totaling 12.1 billion USD.
Some projects will have a large effects on the provincial, regionaland national socioeconomic development such as the Nghi Son Oil Refineryand Petrochemical Complex with a capacity of 10 million tonnes of crudeoil per year and total investment capital of more than 9 billion USD;the Nghi Son 1 Thermal Power Plant project with a capacity of 600MWinvested by the Electricity of Vietnam Group and total investmentcapital of 22 trillion VND; the Nghi Son 2 Thermal Power Plant projectwith a capacity of 1,200MW and total investment capital of 2.3 billionUSD invested by the joint-venture Marubeni Group of Japan and KepcoGroup of the Republic of Korea.
Vice Chairman of theThanh Hoa provincial People's Committee Nguyen Dinh Xung said,investment attraction in the Nghi Son EZ has obtained recognizableresults. However, the investments are only at an early stage andremained modest maybe because the investors have not been fully aware ofpreferential treatments, especially in terms of land and tax policieswhen undertaking investments in this EZ.
In terms of land policies, the investors’ land and water face hire costswill be exempted for 11-15 years since the operations of projects,depending on the fields and branches of the projects.
As for tax policies, when undertaking investments in the Nghi Son EZ,the investors will enjoy an Corporate Income Tax (CIT) rate of 10percent applied for 15 years since the operations of projects. The CITis exempted for the first four years and reduced to 50 percent ofpayable tax amount for nine subsequent years
Regarding high-tech, large scale and important projects to thedevelopment of various fields and branches or to the provincial,regional socioeconomic development, preferential tax rates could extendto a maximum of 30 years. Goods import taxes to make fixed assets andspecialized transport means used in the projects are exempted. Importtaxes are applied for five years since the operations of projects forproduction materials, accessories that Vietnam has not been capable tomake or for Vietnamese products failing to meet the qualityrequirements.
Hoa said: “The success of investors atthe Nghi Son EZ is also that of Thanh Hoa Province. Therefore, the NghiSon EZ Management Board pledges to create the most favorable conditionsfor their operation in the zone.”.-VNA
The Nghi Son Economic Zone (EZ) in Thanh Hoa province is expected tomake more breakthroughs in investment attraction in the coming timethanks to its potential and the upcoming record breaking 9 billion USDNghi Son Oil Refinery and Petrochemical Complex Project.
To attract a large amount of capital into the EZ, on October 23-24Thanh Hoa provincial People's Committee and the Ministry of Planning andInvestment will co-organise a forum on promoting investment in Nghi SonEZ and the surrounding areas.
The Nghi Son EZ islocated in the south of Thanh Hoa province, about 200km south of Hanoi.This is also a link between Vietnam’s northern, central and southernregions with southern Laos and northeastern Thailand.
The EZ is planned into many important sections on a total area of18.611ha, including Nghi Son Port, oil refinery and petrochemicalcomplex zone, Nghi Son Thermal Power Center, Industrial Zones and urbanareas. Of those, the Nghi Son Port has potentials to become a deep waterports capable of receiving ships with a capacity of up to 100,000DWT.
Not only having very favorable and strategic positionfor investment attraction, Head of Nghi Son EZ Management Board TranHoa said the EZ is also one of Vietnam’s five key EZs prioritized by thegovernment to build important infrastructure systems such asbreakwaters along with traffic, water and telecommunication systems.
By now, the Nghi Son EZ has attracted 74 investment projects,including 66 domestic projects with total registered capital of 93trillion VND and 8 foreign projects, totaling 12.1 billion USD.
Some projects will have a large effects on the provincial, regionaland national socioeconomic development such as the Nghi Son Oil Refineryand Petrochemical Complex with a capacity of 10 million tonnes of crudeoil per year and total investment capital of more than 9 billion USD;the Nghi Son 1 Thermal Power Plant project with a capacity of 600MWinvested by the Electricity of Vietnam Group and total investmentcapital of 22 trillion VND; the Nghi Son 2 Thermal Power Plant projectwith a capacity of 1,200MW and total investment capital of 2.3 billionUSD invested by the joint-venture Marubeni Group of Japan and KepcoGroup of the Republic of Korea.
Vice Chairman of theThanh Hoa provincial People's Committee Nguyen Dinh Xung said,investment attraction in the Nghi Son EZ has obtained recognizableresults. However, the investments are only at an early stage andremained modest maybe because the investors have not been fully aware ofpreferential treatments, especially in terms of land and tax policieswhen undertaking investments in this EZ.
In terms of land policies, the investors’ land and water face hire costswill be exempted for 11-15 years since the operations of projects,depending on the fields and branches of the projects.
As for tax policies, when undertaking investments in the Nghi Son EZ,the investors will enjoy an Corporate Income Tax (CIT) rate of 10percent applied for 15 years since the operations of projects. The CITis exempted for the first four years and reduced to 50 percent ofpayable tax amount for nine subsequent years
Regarding high-tech, large scale and important projects to thedevelopment of various fields and branches or to the provincial,regional socioeconomic development, preferential tax rates could extendto a maximum of 30 years. Goods import taxes to make fixed assets andspecialized transport means used in the projects are exempted. Importtaxes are applied for five years since the operations of projects forproduction materials, accessories that Vietnam has not been capable tomake or for Vietnamese products failing to meet the qualityrequirements.
Hoa said: “The success of investors atthe Nghi Son EZ is also that of Thanh Hoa Province. Therefore, the NghiSon EZ Management Board pledges to create the most favorable conditionsfor their operation in the zone.”.-VNA
