Samsung Electronics, the globe’s largest mobile-phone maker, has
officially gotten a nod from the Vietnamese government to enjoy peak incentives
for its investment expansion in the country.
The Government Office just
announced that “the government will continue granting highest incentives to the
new investment project of Samsung Electronics if the project meets criteria and
commitments like the Samsung Electronics Vietnam in Bac Ninh province.”
Kim Yong Seok, complex planning
director of Samsung Electronics Vietnam, last week confirmed with VIR that
Samsung had received a green light from the government to enjoy incentives.
That means the firm will enjoy a 10 per cent corporate income tax for all
products manufactured at the new factory instead of 25 per cent as commonly
applied.
The announcement ended two years
of negotiations between the South Korean firm and Vietnamese government about
the incentives for Samsung’s investment expansion in Vietnam from $670 million
to $1.5 billion to manufacture mobile-phones, cameras and other electronic
products.
According to Vietnam’s Law on
Enterprises, an investment expansion will not be granted incentives like a
newly established project. But a Ministry of Planning and Investment source
said Samsung would establish a new project, which could be built in a place two
hours of driving from the existing factory in northern Bac Ninh province.
“The new factory could be built
in Thai Nguyen province, Haiphong city or other places,” said Seok. He added
Samsung had recently taken a tour to many provinces in the north for studying
the investment location.
The Vietnamese government last
year officially recognised Samsung Electronics Vietnam as a hi-tech firm,
allowing the manufacturer to enjoy highest incentives with 10 per cent of
corporate income tax for all products manufactured at its factory in Bac Ninh.
But the government did not mention whether it would give incentives to Samsung
Electronics’ investment expansion which was also proposed at the same time.
VOV
Business & Investment Opportunities
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