Investment incentives and support policies
The Van Phong Economic Zone and industrial parks in Khanh Hoa province are subject to attractive investment incentives and support policies as stipulated by law, creating the most favorable conditions for investors to develop projects.
Corporate income tax incentives
Import tax exemption
Exemption or reduction of land rent
Loan support and interest rate subsidies
Corporate Income Tax Incentives
Corporate income tax incentives for new investment projects in Van Phong Economic Zone.
Preferential tax rates
15 years✓ Income earned by businesses from new investment projects is subject to a 10% tax rate for 15 years.
✓ This calculation is performed continuously from the first year the business generates revenue from activities eligible for tax incentives.
✓ Compared to the standard tax rate of 20%, businesses save 50% on tax costs.
✓ Applicable to investment projects in Van Phong Economic Zone
Corporate income tax exemption
4 years✓ The business is exempt from tax for 4 years starting from the first year it generates taxable income from the investment project eligible for tax incentives.
✓ 100% exemption from corporate income tax payable for the first 4 years.
✓ There is no limit to the amount of tax exemption.
✓ Helping businesses save capital during the initial stages of operation.
50% reduction in corporate income tax.
the next 9 years✓ A 50% reduction in the tax payable for the next 9 years after the tax exemption period expires.
✓ The effective tax rate will be only 5% for these 9 years (a 50% reduction from the preferential tax rate of 10%).
✓ Total duration of exemption and reduction: 13 consecutive years (4 years of exemption + 9 years of 50% reduction)
✓ After 13 years, the tax rate of 10% will continue to apply for the remaining 15 years from the date of revenue generation.
Other offers
According to regulations✓ Other incentives as prescribed by specialized laws.
✓ Additional incentives may be applied based on the investment sector (if any).
✓ Additional incentives for high-tech projects and large-scale projects.
✓ Contact Management for more details on specific offers.
Import Tax Incentives
Import tax exemption policy for investment projects in Van Phong Economic Zone.
Exemption from import tax on raw materials, supplies, and components.
5 years✓ Import duties will be exempted for 5 years from the start of production for raw materials, supplies, and components that are not produced domestically and are imported for the production of the investment project.
✓ In accordance with the provisions of investment law.
✓ Significantly reduce input costs and enhance competitiveness.
✓ The period is 5 years from the start of production.
Imported goods used to create fixed assets are exempt from import tax.
The entire project✓ Import tax exemption for goods used to create fixed assets for entities eligible for investment incentives.
✓ In accordance with the provisions of investment law.
✓ This includes: machinery, equipment, production lines, and specialized transport vehicles.
✓ There is no time limit on its application throughout the project implementation period.
Beneficiaries
Projects in the Economic Zone✓ All investment projects in Van Phong Economic Zone
✓ The project has a valid Investment Registration Certificate.
✓ This is clearly stipulated in the Investment Registration Certificate.
✓ Implement the project according to the committed content and schedule.
Procedure
Simple✓ Customs procedures at the border crossing are quick and convenient.
✓ Electronic declaration reduces paperwork.
✓ The Management Board assists and guides investors in completing the necessary procedures.
✓ Coordinate closely with Customs to quickly resolve any issues.
Preferential rates for land and water lease fees.
Attractive land lease fee exemption and reduction policies in Van Phong Economic Zone.
Land rent waived during the construction period.
Maximum 3 years✓ Exemption from land and water surface lease fees during the basic construction period as per the project approved by the competent authority.
✓ The maximum exemption period shall not exceed 3 years from the date of the decision to lease land or water surface.
✓ Helping businesses reduce costs during the construction investment phase.
✓ The exemption period is calculated based on the actual progress of the project.
Land lease fee exemption - Special incentive project
Throughout its operation✓ Investment projects in sectors eligible for special investment incentives are exempt from land and water surface lease fees throughout the project's operation.
✓ After the initial construction period, the land lease fee will be waived 100% until the project is completed.
✓ The highest incentives are reserved for important, strategic projects.
✓ List of sectors eligible for special incentives as stipulated by investment law.
Land lease fee exemption - Preferential project
17 years✓ Investment projects in the list of prioritized investment sectors are exempt from land and water surface lease fees for 17 years.
✓ The 17-year period is calculated after the exemption period during the construction phase has ended.
✓ The total exemption period can be up to 20 years (3 years of construction + 17 years of operation).
✓ List of priority sectors as stipulated by investment law.
Land rent exemption - Other projects
13-15 years✓ Investment projects that do not fall under the two categories above are exempt from land and water surface lease fees for 13 years.
✓ Specifically, investment projects for the construction and operation of infrastructure in functional zones within the Economic Zone are exempt from land rent for 15 years.
✓ The 15-year period is calculated after the period of exemption from land rent during the construction phase as stipulated.
✓ Encourage investment in the construction of infrastructure for functional zones serving the development of the Economic Zone.
Support policy
Policies supporting capital and interest rates for investment projects in Van Phong Economic Zone.
Loan support - Economic Zone infrastructure project
Development Investment Fund✓ The project to invest in the construction of infrastructure for the economic zone was financed with a loan from the Khanh Hoa Development Investment Fund.
✓ The project, which serves as an auxiliary facility outside the economic zone's boundaries, received funding from the Khanh Hoa Development Investment Fund.
✓ Preferential interest rates and flexible loan terms as per regulations.
✓ The loan application process is simple and fast.
Loan support - Priority project
Environment & Society✓ Investment in clean water supply, drainage, wastewater treatment, and waste disposal systems is financed through loans from the Khanh Hoa Provincial Development Fund.
✓ Investment in the production of environmentally friendly products is eligible for loans from the Khanh Hoa Provincial Development Fund.
✓ Investment in the construction and upgrading of the seaport is financed by loans from the Khanh Hoa Provincial Development Fund.
✓ Investment in the construction of hospitals, medical facilities, schools, cultural centers, sports facilities, and parks can be financed through loans from the Khanh Hoa Provincial Development Fund.
Interest rate subsidy
According to the decision of the People's Committee✓ Projects that receive loans from the Khanh Hoa Provincial Development Fund are subsidized by the provincial budget for interest rates.
✓ The compensation level is determined by the People's Committee of Khanh Hoa province.
✓ This helps reduce interest costs and increase the project's profitability.
✓ Encourage investment in priority and important sectors.
Conditions and procedures
According to regulations✓ The project must have a valid Investment Registration Certificate.
✓ Included in the list of projects eligible for support as per regulations.
✓ Submit your loan application and interest subsidy request according to the established procedure.
✓ Contact the Management Team for detailed instructions.
Corporate Income Tax Incentives
Corporate income tax incentives for investment projects in industrial zones.
Preferential tax rates
10 years✓ Income earned by businesses from new investment projects is subject to a 17% tax rate for 10 years.
✓ This calculation is performed continuously from the first year the business generates revenue from activities eligible for tax incentives.
✓ Excluding income already subject to a 10% tax rate as stipulated.
✓ Compared to the standard tax rate of 20%, businesses still enjoy significant advantages.
Corporate income tax exemption
2 years✓ The business is exempt from tax for two years, starting from the first year it generates taxable income from the investment project eligible for tax incentives.
✓ 100% exemption from corporate income tax payable for the first two years.
✓ Supporting businesses in their early stages of operation.
✓ There is no limit to the amount of tax exemption.
50% reduction in corporate income tax.
the next 4 years✓ A 50% reduction in the tax payable for the next four years after the tax exemption period expires.
✓ The effective tax rate will be only 8.5% over these four years (a 50% reduction from the preferential tax rate of 17%).
✓ Total duration of the exemption and reduction: 6 consecutive years (2 years of exemption + 4 years of 50% reduction)
✓ After 6 years, the tax rate of 17% will continue to apply for the remaining 10 years from the date of revenue generation.
Import Tax Incentives and Support Policies
Policies on import tax exemption and capital support for industrial parks.
Import tax exemption - Special preferential project
5 years✓ Import duties will be wafted for 5 years from the start of production for raw materials, supplies, and components that are not produced domestically but are imported for production.
✓ Applicable to investment projects belonging to the list of sectors and professions with special investment incentives.
✓ According to the provisions of the law on investment.
✓ Reducing input costs increases the competitiveness of businesses.
Imported goods used to create fixed assets are exempt from import tax.
The entire project✓ Import tax exemption for goods used to create fixed assets for entities eligible for investment incentives.
✓ In accordance with the provisions of investment law.
✓ This includes machinery, equipment, and production lines.
✓ Reduce initial investment costs for businesses.
Other incentives as prescribed by specialized laws.
By industry✓ Other incentives as prescribed by specialized laws.
✓ Additional incentives may be applied based on the investment sector and industry.
✓ Additional incentives for specific projects.
✓ Contact the Management Team for more details.
Loan support and interest rate subsidies
Investment fund✓ The industrial park infrastructure construction project received a loan from the Khanh Hoa Development Investment Fund.
✓ The project for supporting infrastructure outside the industrial park's boundaries received a loan from the Khanh Hoa Development Investment Fund.
✓ Investments in clean water supply, drainage, wastewater treatment, and waste disposal systems, as well as investments in the production of environmentally friendly products, are eligible for loans from the Khanh Hoa Development Investment Fund.
✓ Interest rate subsidies are provided according to the decision of the People's Committee of Khanh Hoa province.
The process for receiving benefits
1
Project registration
Submit investment applications and propose desired incentives as per regulations.
2
Assessment
The Management Board assesses and confirms the benefits received in accordance with the law.
3
Issuing Certificates
The Investment Registration Certificate clearly states the incentives that are entitled.
4
Deployment & Enjoy the Benefits
Implement the project and enjoy the incentives in accordance with the law.
Start your investment project.
Contact the Management Board of Khanh Hoa Province Economic Zones and Industrial Parks immediately for detailed advice on preferential policies suitable for your project.
