Đồng Tháp border EZ – An economic hub in the Mekong Sub-region
VGP – The center of the border-gate economic zone in the southern province of Đồng Tháp will become a border city which, with its own geo-political, socio-economic and cultural advantages, can help boost up economic development and international exchanges, especially in the Mekong sub-region.
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The Dinh Bà Border-gate in the Đồng Tháp EZ |
This overall target was set in a decision signed by the PM last week, stipulating the operations of the Đồng Tháp border-gate economic zone (EZ).
Accordingly, all economic sectors, overseas Vietnamese and foreign investors are encouraged to do investment and business in the EZ, focusing on import-export, transport of transit goods, entrepot services, duty-free shops, exhibitions and fairs, showrooms, manufacturing workshops, representative branches, border-gate markets, socio-economic infrastructure, tourism, financial and banking services.
Apart from rights as stipulated by Vietnamese laws and international conventions under which Việt Nam is a member, investors operating in the EZ are permitted to transfer their rights of using lands and related properties. They are also allowed to mortgage these rights at credit organizations operating in Việt Nam or abroad.
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The Đồng Tháp EZ covers 319.36 km2, with a borderline of 48.7 km, two international border-gates (Thường Phước and Dinh Bà); five auxiliary ones (Sở Thượng, Thông Bình, Mộc Rá, Á Đôn, and Bình Phú); 11 communes and two townships. |
Commercial and industrial investment projects are granted with all incentives applied for localities with socio-economic disadvantages in line with the Laws on Investment, on Enterprise Revenue Tax (ERT), and on Value Added Tax and other international conventions, multilateral and bilateral trade agreements signed by Việt Nam.
These projects enjoy the ERT rate of 10% for 15 years since starting business activities. They are given with an ERT exemption for four years since earning taxable incomes and a tax reduction of 50% for nine following years.
For the projects on building new production lines, renewing technology, improving ecosystem, and upgrading production capacity, the additional income will be free from ERT tax for four years and enjoy a half-cut for seven following years.
Tourists to the EZ are allowed to bring imports into Việt Nam. These goods are exempted from import tax, value added tax, and special consumption tax (if available), but not higher than VND 500,000 per person a day.
By Hoàng Phương
