Red carpet, tax incentives not enough for SEZ: experts
The maximum land use duration has been lifted from 50 years to 70 years, or up to 99 years in special cases, under the latest draft law on SEZs which will be submitted to the National Assembly’s session in May.
The three SEZs would enjoy a series of other preferences, including the personal income tax (PIT), corporate income tax (CIT), VAT and luxury tax remission, as well as preferential rent for land and water surface use.
Regarding administrative procedures, the draft law says the time needed to obtain investment registration certificates will be cut by half to 5-10 days.
Commenting about the preferential treatment, Nguyen Van Phuc, former deputy chair of the National Assembly’s Economics Committee, said the compilation committee made a ‘breakthrough’ when suggesting preferences which were ‘unimaginable’ in the past.
“The investment incentives are competitive and we will have to change them regularly to create higher competitiveness to attract multinationals,” he said.
However, analysts say that investors expect not only tax incentives, but an open business environment and transparent institutional policies and procedures.
Kim Dong Hwi, an investor from the Republic of Korea, said the policy is no longer the most important factor for foreign investors to make a decision.
“A favorable business environment and open policies are sufficient conditions for investors to choose Vietnam as an investment destination and stay here,” he said.
An investor from Hanoi, who is considering the opportunities in Phu Quoc, said he still could not make a decision, because he fears the licensing problems cannot be settled.
VnExpress quoted experts as saying that SEZs will need many other favorable conditions.
Vietnam needs to remove many kinds of required licenses, while the court needs to shorten the time needed to hear disputes.
He thinks that the private sector should also be allowed to join the SEZ board of management.
He said the degree of liberalization in the goods and service flow, and the institutional system are two prerequisites, while tax incentives will be just a secondary condition.
Deputy Minister of Planning and Investment Tran Duy Dong said at a meeting with the press in late February that the ‘free trade zone’ model is mentioned in the latest draft.
“We now have non-tariff areas, but the policy isn’t clear enough, so the law needs to elaborate on this. The zones will be connected with seaports and airports to ensure international competitiveness,” Dong said.
Related News
Import tax exemption to benefit domestic ITC industry
14:35 | 31/03/2023 Import-Export
Vietnam adjusting policies to adapt to global minimum corporate income tax: Official
15:48 | 27/03/2023 Finance
Goods imported from export processing enterprises must pay tax
09:03 | 24/03/2023 Regulations
Vietnam joins Multilateral Convention to tackle tax evasion and avoidance
15:22 | 23/03/2023 Finance
Latest News
Saigontex 2023 attracts over 1,300 domestic, foreign businesses
14:01 | 06/04/2023 Import-Export
Mong Cai international border gate sees strong recovery
16:15 | 05/04/2023 Import-Export
Vietnam a potential market for French businesses, investors: experts
16:12 | 05/04/2023 Import-Export
Import and export turnover across Cao Bang prospers but still exists difficulties
10:25 | 05/04/2023 Import-Export
More News
Cashew industry strives to "get on the shelves of world supermarkets"
10:24 | 05/04/2023 Import-Export
HCM City’s industrial production index down 0.9% in Q1
14:47 | 04/04/2023 Import-Export
Fisheries exports estimated at 1.85 billion USD in Q1
14:45 | 04/04/2023 Import-Export
Quang Ninh aims to attract quality FDI inflows
14:43 | 04/04/2023 Import-Export
Exports face many difficulties
13:29 | 04/04/2023 Import-Export
Manufacturing enterprises increase their competitiveness thanks to digital transformation
13:28 | 04/04/2023 Import-Export
32nd Việt Nam Expo promises to boost business linkages
14:19 | 03/04/2023 Import-Export
Prevention of price risks before news that Indonesia increases rice imports in reserve
09:52 | 03/04/2023 Import-Export
Japanese investors highly appreciate Vietnamese property market
17:41 | 02/04/2023 Import-Export
Your care
The system has not recorded your reading habits.
Please Login/Register so that the system can provide articles according to your reading needs.
Saigontex 2023 attracts over 1,300 domestic, foreign businesses
14:01 | 06/04/2023 Import-Export
Mong Cai international border gate sees strong recovery
16:15 | 05/04/2023 Import-Export
Vietnam a potential market for French businesses, investors: experts
16:12 | 05/04/2023 Import-Export
Import and export turnover across Cao Bang prospers but still exists difficulties
10:25 | 05/04/2023 Import-Export
Cashew industry strives to "get on the shelves of world supermarkets"
10:24 | 05/04/2023 Import-Export