CALLING FOR INVESTMENT IN NINH TINH INDUSTRIAL DEVELOPMENT ZONE

CALLING FOR INVESTMENT IN NINH TINH INDUSTRIAL DEVELOPMENT ZONE

I. PROJECT OVERVIEW

1. Project Objectives: Attracting investment in petrochemical industries and supporting industries. In addition, investors can propose other sector that they want to invest.

2. Location:

- Location: Ninh Tinh Village, Ninh Phuoc Commune, Ninh Hoa Town, Khanh Hoa province. 20km from Ninh Hoa town; 50 km from Nha Trang  City and 500 km from Ho Chi Minh City. This project in Van Phong economic zone area of Khanh Hoa province.

- Area: 560 ha.

- Boundaries:  It border Thermal Power Plant Van Phong 1 BOT project on the north; Sea on the east; Ninh Phuoc ecological tourist on the south, Hon Heo mountains on the west.

- Current status of the land: rural residential areas, aquaculture ponds, perennial crop land, sea warer surface.

3. Natural conditions

- The basic characteristics of this terrain are coastal land, lower toward the sea. Geography is fairly good, stable, consistent with the construction of the industrial zone.

- This area in the South Central coastal climate, relatively mild climate, The annual average temperature is 26,8⁰C,  the average annual sunshine hours up to: 2,158 h/year, Average annual rainfall: 1.800mm and less  storm.

4. Currently status of infrastructure:

- Water supply: water supply systems from Tien Du lake (9 million m3) and Da Ban lake (75 million m³⁾  ongoing, satisfy the wants of water during construction and operation of the project.

- Electricity supply:  Electricity from 110KV station in Ninh Thuy industrial zone, meet the needs of electric power in the process of construction and operation of the project.

- Telecommunication: from telecommunication system of Ninh Hoa town, meet the demands of investors.

- Transport infrastructure: Road connections from the project area to National Highway 1A about 18 km across The Highway 1B (ongoing construction) and national Highway 26B; about 90 km to Cam Ranh airport, 80 km to Tuy Hoa airport at Phu Yen province; Hoa Huynh railway station at Ninh Hoa town about 20 km; Nam Van Phong general port about 6 km (receiving ships 30,000 DWT ship reception) under construction.

- Training labor: Khanh Hoa province has 6 universities, 1 vocational college, 7 vocational training centres (intermediate level) in the cities and districts.

5. Estimated time: 2016-2020.

6. Form of investment: direct investment or joint ventures.

II. ADVANTAGES and DISADVANTAGES

1. Advantages

- This location is the gateway to the East Sea for the Central Highlands at the industry center of the van Phong economic zone; border the Van Phong Bay; near the international maritime routes.

- The project is adjacent to the sea has a depth from 10-15m favorable to building specialized ports serve for large industry projects. Can expansion the project area towards the sea.

- There are convenient transport conditions both on road, railway, and airway and at sea, available infrastructure.

- The goverment implementing site clearance and hand over to investor.

- Located in van Phong economic zone should enjoy the best investment incentives in accordance with law.

2. Disadvantages

-  Land hasn't site clearance; time, the cost of site clearance can affect to the progress of project.

- Not near the economic focal regions in the South, (HCMC, Binh Duong, Dong Nai ...).

- Some of transport infrastructure such as Bac Van Phong general Port, Nam Van Phong general port being invested, not yet operation.

III. PREFERENTIAL POLICIES, SUPPORT FOR INVESTMENT IN INDUSTRIAL ZONE

1. Preferrential policies

- Coroprate Income Tax

+ Income of enterprises from implementing a new project is applied the preferential tax rate of 10% for 15 years counted consecutively from the first year when enterprises generate turnover from this new project eligible for tax incentives;

+ Tax exemption for 4 years and reduction 50% of payable tax amounts for 9 subsequent years, counted consecutively from the first year when enterprises generate turnover from this new project eligible for tax incentives.

- Import duties

+ Exemption for raw materials and components which cannot be domestically manufactured imported to process for 05 years after the commencement of production.

+ Exemption for goods imported to create fixed assets of projects entitled to investment incentives as prescribed by regulations of law on investment.

- Personal Income Tax:

+ Reduction 50% of personal income tax for individuaks working in economic zone.

- Land and water surface rental:

+ The land and water surface rental shall be exempted during the fundamental construction period according to the projects approved by the competent authorities for at most 3 years from the effective date of the land lease decision.

After this incentive period above, land and water surface rental shall be exempted as follow:

+ Projects in the List of domains entitled to special investment incentives are exempted from land and water surface rental for the whole life of projects.

+ Projects in the List of domains entitled to investment incentives are exempted from land and water surface rental for fifteen (15) years.

+ Projects, which are not listed as above, are exempted from the land and water surface rental for eleven (11) years.

And other incentives are stipulated in specialized legislation.

2. Investment support policies.

-  Investors suggested other support policies, Khanh Hoa People's Committee considered and decided.

IV. CONTACT

Van Phong Economic Zone Management Board

- Address: No. 04-06 Le Thanh Phuong street, Nha Trang city, Khanh Hoa province, Vietnam.

- Tel: +84.58.3560588 - Fax: +84.58.3560494

- Email: bqlvp @ khanhhoa.gov.vn

- Website: http://vanphong.khanhhoa.gov.vn