Prime Minister Nguyen Xuan Phuc has given the green light to the implementation of Decree No 04/2018/ND-CP regulating preferential mechanisms and policies for the Da Nang Hi-Tech Park which will officially take effect from 20 February.

A view of Japan-invested Tokyo Keiki Precision Technology Company at the Park

Accordingly, domestic and foreign organisations and individuals doing business and working at the Park will enjoy many preferential policies and investment support mechanisms regarding corporate income and import taxes, investment credit, land lease fees and many other incentives.

New investment projects in the park will enjoy an incentive corporate income tax rate of 10% in 15 years. 

Especially, any new project with a total investment capital of 3 trillion VND (over 132 million USD) or above will enjoy a rate of 10% for a period of 30 years.  In addition, these projects will be entitled to corporate income tax exemption for 4 first years of their operation, and a 50% tax reduction for 9 subsequent years.

With regard to import tax incentives, import duty exemption for 5 first years will be applied to raw materials, supplies and accessories that cannot be domestically produced, and are imported for production activities at investment projects.

Land lease fee exemptions for the entire term shall be applied to projects using land to develop civil engineering and technical infrastructure works, tree planting areas, public parks, facilities for State-owned agencies, hi-tech human resource training centres, accommodations for experts and employees working in the park and other projects involved in a list of priority aspects.

The land users are also exempted from nonagricultural land usage tax for the entire land use term.

The decree also stipulates that the Park’s investors, specialists and employees, who are overseas Vietnamese and foreigners, along with their family members, (parents, spouses, and offspring and adopted children aged under 18), will be considered for the issuance of multiple entry visas with the validity suitable to their working schedule in the Park in accordance with the current national laws.

Each year, if a national budget collection review finds its exceeds the annual target, the national government will ask the National Assembly Standing Committee to prioritise to grant capital for the Park, thereby facilitating this venue to complete its infrastructure development by 2020.

Furthermore, the national government will appeal for official development assistance (ODA) for Da Nang to develop its technology and social infrastructure, necessary public works, technological application and development centres, and hi-tech enterprise incubators.  The city must cover corresponding capital for these projects.