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Delta region offers investment incentives

Update: March, 26/2012 - 09:50

CUU LONG DELTA — Companies that want to invest in the Cuu Long (Mekong) Delta region will likely be given preferential treatment under a plan drafted by the Ministry of Planning and Investment.

The objectives of the proposal include increasing the area's number of exports with high-added value, and creating businesses that would offer non-agriculture employment for local residents.

The plan also aims to protect the environment and minimise the effects caused by climate change.

Under the proposal, companies that invest in areas of priorities in the region would receive credit support and tax relief.

These include companies involved in processing agriculture and aquatic products; supplying services for enterprises; and professional training, technology transfer, silo construction and tourism development.

Preferential credit policies for enterprises would be offered under various forms, with low or zero interest rates, and with an appropriate grace period and simple eligibility requirements.

Enterprises participating either completely or partly in the delta would either be exempt from taxes or have lower taxes. Fast depreciation rates might also be allowed.

The plan also encourages the setting up of units specialising in supply of services, especially those related to the provision of business information, legal consultation, partner discovery, trade promotion and technology transfer.

Additionally, the Government wants to improve the quality of vocational training units, and offer a stimulus to companies to establish non-state vocational training establishments and apply new technology to production activities.

After getting approval by the Government, the programme would use all available resources to settle the most urgent problems facing the development of the region's major products.

In particular, rice cultivation areas in the region would be rearranged to ensure sufficient supplies for domestic and export demand.

The project also plans to make adjustments to current land-cultivation allocation to create opportunities to develop fisheries and agriculture production on a large-scale and in a sustainable manner.

Localities will be required to re-plan areas specialising in growing fruit trees based on the strengths of each locality, and create conditions for farmers to carry out technology transfer to ensure product quality and food safety.

Another important feature of the plan is the development of infrastructure in the region.

The aim is to improve the road networks in the delta region, with priority given to roads that link provinces and cities in the key economic zone with other localities and seaports.

The local waterway and port systems would also be upgraded with investment priorities given to construction of a passage on Hau River, development of Can Tho Port into a trade centre for the delta region, and the changing of Can Tho Airport into an international airport.

For the commercial area, the plan calls for creating land and capital conditions for projects involved in construction of storehouses used for agriculture and aquatic products, and the development of wholesale and border markets. — VNS

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