Kumho Asiana Group wants to follow in the footsteps of Samsung and gain
landmark tax incentives for its investment expansion plans.
A Binh Duong Provincial
Industrial Parks Management Authority source said the South Korean group had
asked the local authorities for incentives for its expansion of the existing
tire manufacturing factory in southern Binh Duong province.
In September, Samsung received
generous tax incentives for its Vietnam-based investment expansion from $670
million to $1.5 billion after a two year wait.
“The [Kumho representatives] said
they should be granted incentives like Samsung because they also significantly
contribute to Vietnam’s economic development,” said the source.
However, he said the provincial
authorities could not satisfy this request because the Law on Corporation
Income Tax regulates investors cannot enjoy tax incentives for expanding an
investment project.
“This month, top officers of
Kumho Asiana Group will arrive in Vietnam to meet the government’s high-ranking
representatives to discuss this proposal,” added the source.
Kumho Asiana Group chairman
Sam-Koo Park in his visit to Vietnam four months ago announced that Kumho Tire
– the group’s manufacturing subsidiary – would invest a further $100 million in
Vietnam to expand its output capacity to 5.6 million units per year from 3.15
million units. This will rise Kumho’s investment to $300 million in this
factory.
Park said Kumho had been
preparing for this project and would start this year and further expand the
plant until it reached 13 million units of annual output capacity. However,
this schedule could be delayed as the investor must wait for tax incentive
approval from the Vietnamese government.
Kumho is not alone when asking
for such incentives. Germany’s Robert Bosch is also in the same boat with its
investment expansion plan of its factory in southern Dong Nai province.
The German firm has invested €80
million, or $103.7 million at current exchange rate, in this factory and could
raise total investment to €230 million or $298.3 million.
Vo Quang Hue, managing director
of Robert Bosch Vietnam, said incentives were an important factor for Robert
Bosch to expand investment in Vietnam, which it considered a manufacturing hub
for South East Asia.
Ninh Kieu | vir.com.vn
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