VietNamNet Bridge – Robert Bosch Vietnam now waits for the
final decision from the government of Vietnam on whether to give investment
incentives to its expanded project. Prior to that, some investors also obtained
the desired incentives after asking for preferences.
The story about whether Vietnam
should please giant foreign investors by offering extra investment incentives
has been once again heated up, after Robert Bosch Vietnam in Dong Nai province
clamored for investment incentives for the expanded project.
Bosch has invested 100 million
dollars in its factory in the southern province, while it plans to raise the
investment capital in Vietnam to 322 million dollars by 2015.
However, Vo Quang Hue, CEO of
Robert Bosch Vietnam. Said the plan on scaling up production in Vietnam would
still depend on if Bosch can receive investment incentives. What Robert Bosch
wants is to enjoy the preferential policies, including the corporate income tax
incentives reserved for hi-tech enterprise.
At present, Bosch still cannot
enjoy tax incentives as a hi-tech enterprise. Setting up factory in the Long
Thanh Industrial Zone, the company also does not enjoy the corporate income tax
as stipulated in the Decree No. 124 which guides the implementation of the
Corporate Income Tax Law.
Even if Bosch could enjoy tax
incentives now, it would not be able to enjoy tax incentives for the expanded
project.
Bosch has got good news when
Minister of Planning and Investment Bui Quang Vinh, after visiting the factory,
believes that Bosch’s project can meet the requirements (the project in
high-tech production and supporting industries) to be able to enjoy tax
incentives.
Therefore, Vinh has told Bosch to
send an official document to clamor for the preferences. Meanwhile, the Dong
Nai provincial People’s Committee and the Planning and Investment Department
would also send the documents, confirming the investment scale of the project.
The documents would be submitted by the Ministry of Planning and Investment to
the government, which would consider releasing a preferential mechanism for
Bosch.
As such, everything now depends
on the final decision to be made by the government. In the best scenario, the
proposals by the investors get approval, and Vietnam will have one more foreign
invested project to be able to enjoy specific investment incentives.
An official of the Ministry of
Planning and Investment said on Dau tu that a lot of problems in the
implementation of the investment incentive mechanism for foreign invested enterprises
have been found.
The enterprises in industrial
zones do not enjoy the corporate income tax incentives. Meanwhile, only newly
registered investment projects can enjoy tax incentives, while expanded
projects cannot.
This, according to the official,
has led to the fact that a lot of expanded projects in the hi-tech field, in
which Vietnam encourages investments, cannot enjoy preferences. Meanwhile,
newly registered projects can enjoy incentives at the highest levels.
“Meanwhile, if comparing newly
invested projects and expanded projects, one would see that the latter have
higher feasibility,” he said.
As a result, instead of
registering expanded investment projects, some investors asked for the
permission to set up a new project to enjoy tax incentives. After that, they
would merge the two projects into one.
“Investors won’t make investments
if they cannot receive investment incentives,” said Ngo Sy Bich, Head of the
Bac Ninh provincial Industrial Zone Board of Management, who is suffering a headache
from Samsung case.
Thoi bao Kinh te Vietnam has
reported that Samsung Electronics Vietnam (SEV) has asked for the preferential
mechanism for the expanded part of its project to raise the total investment
capital to 1.5 billion dollars. However, the proposal for incentives has not
got the nod from the government.
C. V
Business & Investment Opportunities
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