The world’s largest mobile phone maker Nokia
this week starts work on its first factory in Vietnam.
The
$302 million factory, located in northern Bac Ninh province’s Vietnam-Singapore
Industrial Park, will be Nokia’s 11th in the world and is a part of its plan to
increase competitiveness in the diverse global mobile device market.
The new
factory will recruit about 10,000 local workers. Nokia announced its Vietnam
plan in March, 2011. It followed nearly nine months of negotiations, in which
the Vietnamese government agreed to recognise the mobile phone-maker’s project
as “a high-tech project”.
That
allowed it to enjoy the highest tax and land incentives under Vietnam’s
High-Tech Law as its rival South Korea’s Samsung Electronics is enjoying. Pham
Cam Ly, communications manager of Nokia in Indochina, said the incentives were
an important factor supporting Nokia’s factory plan in Vietnam. Being recognised
as a high-tech enterprise, Nokia will have an equal competitive advantage with
its rival Samsung Electronics in terms of tax policies.
The
incentives include 10 per cent corporate income tax (CIT), instead of the 25
per cent imposed on normal foreign invested enterprises. A high-tech enterprise
also enjoys tax exemption in its first four years of operation and pays half of
this 10 per cent rate in the following nine years.
In
return, Nokia pledged to meet criteria of localisation rate and employment of
skilled workers within the first three years of operating. Nokia’s investment
further adds Vietnam into the global chain of mobile phone manufacturing.
At
present, Samsung is also operating a $670 million mobile phone factory in Bac
Ninh. This factory manufactures the firm’s latest products like Galaxy S II and
Tablet Tab 10 and Tab 7.
The
South Korean manufacturer is also planning to expand investment in Vietnam from
$670 million to $1.5 billion, making Vietnam its largest manufacturing
production base in the world.
Ngoc
Linh | vir.com.vn
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Healthcare and Life Science with expertise in ASEAN. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programmes. Many thanks for visiting www.yourvietnamexpert.com and/or contacting us at contact@yourvietnamexpert.com
Dear
Reader,
May I
invite you to visit our new blog: IIMS-Asean http://iims-asean.blogspot.com/
News
and activities of the International Institute of Medicine and Science Asean
Chapter of IIMS, Inc. California, USA - Health care, Life Science, Education,
Research, Philanthropy. Asean is the economic organisation of ten countries
located in South East Asia: Brunei Darussalam, Cambodia, Indonesia, Lao PDR,
Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. IIMS is a
non-profit organization.
No comments:
Post a Comment