Prime minister Phan Van Khai on March signed a decision convening Dung Quat Industrial Park in the central province of Quang Ngai into an economic zone and thus making it more attractive to investors.
Under the decision, the economic zone covers 10,300 hectares in the communes of Binh Chanh, Binh Thanh, Binh Dong, Binh Thuan, Binh Tri, Binh Hai, Binh Phuoc, Binh Hoa and Binh Phu.
The economic zone will simultaneously develop its production, service and residential areas and will co-exist with Chu Lai Open Economic Zone in adjoining Quang Nam Province.
The zone will focus on such fields as petrochemicals, chemicals, engineering, shipbuilding, steel, cement, marine container manufacturing and consumer goods.
The government wants Dung Quat and Chu Lai Open economic zones to become hubs for the entire central region to further encourage its development. They are also expected to boost Vietnam’s business ties with Laos and Thailand’s northeast.
To this end, Dung Quat gets the same preferential treatment that Chu Lai benefits from, including having to pay only a 10% corporate income tax for 15 years from the first start-up year. Enterprises are exempt from the tax for four-years after their first profit-making year and will pay just half in the nine following years.
There are no import duties over five years for materials, components and semi-products that Vietnam does not or can make, but the products are not qualified enough.
Vietnamese and foreigners working in Dung Quat also pay just half of the personal income tax.
Foreigners and overseas Vietnamese can hire land in Dung Quat to, in turn, lease it out to other investors.