An industrial park is a concentrated area of large enterprises specializing in the production of industrial products and industrial production services, having a definite geographical boundary, not inhabited and signed by the Prime Minister. create. This is considered as an ideal destination for domestic and foreign investors who want to develop their business in Vietnam because in recent years, the Vietnamese government has constantly offered preferential policies, encouraging investment in industrial zones.

Therefore, in order for investors to have a better view of the procedures for implementing investment projects in Industrial Parks in Vietnam, Hong Bang Law would like to send to customers the following advice:

Legal grounds

• Investment Law 2020;
• Decree No. 31/2021/ND-CP detailing provisions of the Investment Law.

Incentive policies

Exemption and reduction of corporate income tax:

• Enterprises are entitled to tax exemption for 2 years and a 50% reduction of payable tax for the next 4 years for income from the implementation of new investment projects.

Preferential import and export tax

• Exemption from import tax on goods that make up the project’s fixed assets
• Tax exemption for goods imported for processing and processed products for export;
• Tax exemption for goods exported for processing and imported processed products
• Tax exemption for goods imported to produce goods for export
• Exemption from tax on imported goods to create fixed assets of beneficiaries of investment incentives
• Exemption from import tax on raw materials, supplies and components for a period of 5 years
• Tax exemption for goods produced, processed, recycled or assembled in non-tariff zones
• Exemption from tax on imported raw materials, supplies and components for the production and assembly of medical equipment

Exemption and reduction of land rent:

• Exemption of land rent for 11 years from the time the project is completed and put into operation. Exemption of land rent during the period of temporary suspension of construction or operation because the project faces difficulties and must be suspended when certified by the investment licensing agency.
• Reduce 50% of land rent during the period of business shutdown in case of natural disaster, fire, force majeure accident.

Regulations on the implementation of investment projects

For the investment project executed in an industrial park, export-processing zone, hi-tech zone or economic zone, the investor is entitled to carry out the following activities:

• Leasing or purchasing warehouses and depots to serve their business operation.
• Using and paying for the use of technical infrastructure and service facilities, including systems of roads, electricity supply, water supply and drainage, communications, wastewater treatment, waste treatment and other public facilities (hereinafter referred to as “infrastructure charges”).
• Transferring and receiving the land use rights, leasing out and subleasing out land on which technical infrastructure has been constructed to construct buildings, offices and other works serving their business operation in accordance with regulations of law on land and real estate business.
• Leasing out or subleasing out their buildings, offices and other works to serve their business operation in accordance with regulations of law on land and real estate business.
• Carrying out other activities specified in the Law on Investment, Decree Government’s regulations on industrial parks, export-processing zones, hi-tech zones and economic zones, and relevant regulations of law.

Procedures

Step 1: Survey and introduce investment locations

Step 2: Apply for the Investment Registration Certificate

Some investment projects must be approved for investment policy

Step 3: Set up a business

Step 4: Implement procedures on Environment, Fire prevention and fighting, land allocation, and land lease

Step 5: Appraisal of basic design documents and construction permit

Services provided by Hong Bang Law

Hong Bang Law is a company with 10 years of experience in consulting in the field of foreign investment. We have supported many foreign investors to accompany them during the implementation of investment projects in Vietnam.

Hong Bang Law will accompany customers with consulting and supporting services in the Execution of investment projects in industrial parks:

• Comprehensive advice on the investment process in industrial parks
• Apply for approval of investment policy and issue an Investment Registration Certificate
• Register to establish a business, create a seal, open an account
• Representing customers to carry out necessary procedures at state agencies

If you need more detailed advice and answers as well as how to access this service, please contact directly our Lawyer Nhat Nam via hotline: 0912.35.65.75, 0912.35.53.53 or call the toll free legal consultation hotline 1900.6575 or send a service request via email: lienheluathongbang@gmail.com

Wishing you and your family good health, peace and success!

Best regards!