An export processing zone is an industrial park specializing in the production of export goods, provision of services for export production and export activities, and is established according to the conditions, order and procedures applicable to industrial parks.

Therefore, Hong Bang Law would like to send to customers the following advice about the procedures for implementing investment projects in the export processing zone.

Legal grounds

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

Incentive policies

Export processing enterprises enjoy special incentives compared to other enterprises in industrial parks and economic zones

• Export processing enterprises may apply regulations for separate customs areas and non-tariff zones, except for specific regulations applicable to non-tariff zones in border-gate economic zones.
• Export processing enterprises are entitled to purchase construction materials, stationery, food, foodstuffs and consumer goods from inland Vietnam to build works and serve office administration and staff activities. , workers working at the enterprise.
• Export processing enterprises and sellers to export processing enterprises may choose to carry out or not carry out export and import procedures for building materials, stationery, food, foodstuffs and consumer goods from inland Vietnam.
• Customs procedures, customs inspection and supervision for exported and imported goods of export processing zones and export processing enterprises shall comply with the law on customs.
• The exchange of goods between export processing zones, export processing enterprises and other areas in the territory of Vietnam, other than non-tariff zones, is an import and export relationship, except for the cases specified in Clause 1 of this Article. 3 This article and cases of non-customs procedures shall be prescribed by the Ministry of Finance.
• Export processing enterprises may sell into the domestic market their liquidated assets and goods in accordance with the law on investment and trade. At the time of sale or liquidation to the domestic market, no policy on management of exported or imported goods shall apply, unless the goods are subject to management according to conditions, standards, and specialized inspection has not yet been carried out. import; goods under the management of a license must be approved in writing by the import licensing agency.
• Officials and employees working in export processing zones and export processing enterprises when bringing foreign exchange from inland Vietnam into export processing zones, export processing enterprises and vice versa are not required to declare customs.
• When an export processing enterprise is permitted to do business in goods purchase and sale activities and activities directly related to the purchase and sale of goods in Vietnam, it must open separate accounting books for revenue and expenses related to the purchase and sale of goods. selling goods in Vietnam and arranging a goods storage area separate from the goods storage area serving production activities of export processing enterprises or setting up a separate branch located outside the export processing enterprise or processing zone. output to perform this operation.

Tax incentives for export processing enterprises:

• Exemption and reduction of corporate income tax

Export processing enterprises are entitled to tax exemption for 2 years and a reduction of 50% of the payable tax amount for the next 4 years for income from the implementation of new investment projects. Export processing enterprises enjoy the tax rate of 17%.

• VAT incentives:

Export processing enterprises are not subject to VAT for goods sold and services provided directly to organizations and individuals in non-tariff zones.

• Preferential import and export tax

Export processing enterprises are located in non-tariff zones, so they will not be subject to import and export tax in the following cases: Goods exported from the non-tariff zone to foreign countries; goods imported from abroad into non-tariff zones and used only in non-tariff zones; Goods moved from one non-tariff zone to another are not subject to tax

• Exemption and reduction of land rent:

Export processing enterprises are exempt from land rent for 07 years

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 the Export processing zone:

• Comprehensive advice on the investment process in Export processing zone
• 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
• Carry out registration procedures for investment incentives

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!