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Province seeks more incentives for Samsung

Update: August, 25/2012 - 08:18
Cell phones are produced at the factory of Samsung in Bac Ninh.—Source:talkvietnam

HA NOI — Authorities in northern Bac Ninh Province have called on the Government to provide additional tax breaks and incentives to a Samsung factory based in the province.

The South Korean firm's plant in Yen Phong Industrial Zone produces mobile phones, tablets and electronics accessories, and there are plans to expand production from a capital registration of US$670 million to $1.5 billion.

But according to Truong Tien Yen, chief of the provincial Party Committee Office, Samsung Electronics Viet Nam (SEV) will face difficulties in carrying out its expansion plans if it didn't get more Government support, despite already enjoying corporate income tax incentives as a high-tech investor.

"SEV's electronics products already enjoy tax incentives including a preferential income tax rate of 10 per cent for 15 years, a tax exemption for four years after and a 50 per cent tax reduction for the following nine years," said Yen.

"However, the expansion of SEV's production may face difficulties if no assistance from the Government is provided," said Yen. "The same incentives should be considered for the expansion, even if recent regulations do not allow any investment incentives to expanded projects."

During a visit to Bac Ninh this month, Minister of Finance Vuong Dinh Hue said the ministry would submit a proposal on corporate income tax changes to the National Assembly next May.

He said the Ministry of Finance would create the most favourable conditions for business development, but on the other hand, enterprises must strictly comply with the laws of Viet Nam.

Last year, the firm submitted the same proposal to the government.

SEV plans to earn up to $10 billion this year, at the same time, the plan targets to create jobs for as many as 22,000 local workers. — VNS

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