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VN backs Japan investors in six sectors

Update: December, 18/2013 - 08:55
Viewers experience a technology product at Techno Japan 2013. —Photo vietnamplus

HA NOI (VNS)— The Ministry of Planning and Investment is to complete structuring laws and policies to attract Japanese investment in six prioritised sectors by 2015.

These sectors include electronics, agricultural machinery, processing of agriculture and fisheries, shipbuilding, environment and energy saving, as well as manufacturing of automobiles and automobile spare parts, and are expected to create high value added and raise the international competitiveness of the country.

They were listed in Decision No 1043 on Viet Nam's industrialisation strategy, as part of the framework of Viet Nam-Japan cooperation towards 2020, while looking towards 2030, which came into effect on July 1, 2013, said Pham Vu Hai, director of the ministry's Investment Promotion Centre-North Viet Nam.

"The two governments will cooperate to improve the investment environment in Viet Nam. We will offer active support for investors who are operating in Viet Nam, and create advantages for those who intend to invest here," he said during a seminar on the sidelines of Techno Japan 2013 and Viet Nam Security 2013 yesterday in Ha Noi.

The ministry's Foreign Investment Agency (FIA) showed that Japan remained the largest investor in Viet Nam, with 2,103 projects and a total investment of US$34.52 billion.

Until November 20 this year, total Japanese projects in Viet Nam reached 15,600, accounting for 13.5 per cent, in comparison with the total foreign direct investment (FDI) in the country.

Singapore and South Korea took the second and third places, with total investment of $29.16 billion and $28.83 billion, respectively.

Among provinces receiving FDI, central Thanh Hoa gained the largest amount, with eight projects worth $9.66 billion, followed by southern Binh Duong, having 207 projects worth $3.9 billion, and Ha Noi with 514 projects worth $3.7 billion.

The latest statistics also pointed out that the processing and manufacturing industries attracted the largest amount of FDI capital in Viet Nam, with 1,150 projects and total registered capital of $29.04 billion.

Real estate came next with 28 projects worth $1.4 billion and construction gained third position with 53 projects worth $1.05 billion.

Hai said that after 25 years of attracting FDI, the government decided it was time to select high quality projects which were included advanced technology, environmentally friendly and competitive products.

"The government will attract large-scale projects with highly competitive products to take part in global value chains of transnational corporations, as well as build and develop support industries," he said.

Recently, the National Assembly approved a corporate income tax (CIT) amendment law, which will come into effect on January 1, 2014.

According to the new law, enterprises with total turnover of less than or equal to VND20 billion will receive a tax rate of 20 per cent beginning July 1, 2013.

The ordinary ICT rate is 22 per cent beginning January 1, 2014 and will fall to 20 per cent on January 1, 2016.

"The preferential conditions are applied for projects of prioritised sectors or investment projects in economic zones.

However, for hi-tech companies, conditions to receive special taxes are still tight. At the moment, there are only one or two hi-tech firms achieving preferential status, and I think we should amend this to let companies – which meet some of requirements, though not all criteria – receive preferential status," he said. — VNS

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