Thai Nguyen approves incentives for Samsung

Update: December, 12/2014 - 08:57

The US$3 billion Samsung plant in Thai Nguyen Province will recruit 30,000 workers in the local area.— Photo Samsung

HA NOI (VNS) — The People's Council of Thai Nguyen Province officially approved yesterday a resolution on investment incentives for Samsung Electronics Vietnam Thai Nguyen's second phase hi-tech production complex (SEVT2), located in Yen Binh industrial park (IP).

Accordingly, the investors receive incentives and investment assistance so that they can fulfil their commitment to meet the criteria required of a high-tech enterprise. These criteria have been approved by the Ministry of Science and Technology.

While the SEVT2 project was being set up, investors were offered 50 per cent exemption in their corporate income tax payments for the three years, once their tax exemption limit expires under the Law on Corporate Income Tax.

The investor will have to pay only 50 per cent land rental fee in Yen Binh IP, for 70ha of area or its equivalent.

Annually, the land rental fee will be lesser or equivalent to the tax figure paid by the company to the State.

According to Thai Nguyen Province, the SEVT2 project aims to lead research and development in mobile devices, electronics, telecommunications and high end technology.

It also intends to spearhead the manufacture and assembly of mobile phones, laptops, digital cameras and smart televisions.

The US$3 billion project will be located near the company's first factory which came into operation in March this year with the total investment capital of US$2 billion in the Yen Binh Industrial Park of Thai Nguyen Province.

The 70ha plant is expected to initially recruit 20,000 workers, a number that will be later increased to 30,000. The two factories are expected to create jobs for around 100,000 local residents.

The first plant of Samsung in Viet Nam is situated in the northern province of Bac Ninh. It has a total capital of approximately $1.5 billion. It launched its first products in April 2009. Samsung Bac Ninh manufactures 13 to 15 million tonnes of products monthly, and over 90 per cent of them are meant to be exported. — VNS