In recent years, Hue city's economy has achieved considerable growth compared to country-wide value. The economic structure has suitable transitions towards tourism and service - industry - agriculture. However, Hue city still shares many difficulties that key Central economic region is now facing in attracting domestic and foreign investors. Therefore, leaders of Board and Departments are responsible for raising investment fund; effectively exploiting natural resources and infrastructure; promoting local advantages, contributing to economic structure transition towards industrialization, modernization and employment settlement; raising income and implementing State poverty reduction strategy. Pursuant to State regulations on investment, Hue city has encouraged and promulgated investment incentive policies, created favorable investment environment for domestic and foreign investors investing in industrial zones in the city.
Land incentives: Investment projects in industrial zones which allows land lease will enjoy the following incentive rate: land-leasing price of infrastructure attached land in Phu Bai Industrial zone: 0,32 USD/m2/year. Land-leasing price in other industrial zones: It is depend on infrastructure condition to apply the floor price, the lowest price in common regulation.
Tax incentive: All manufacturing units established in the industrial zone enjoy 15% tax applicable in 12 years since the project is operated; enjoy tax exemption in 03 years since the taxable income is generated and 50% tax reduction in 7 subsequent years.
Investment projects on business and infrastructure development in the industrial zone; export processing corporate project enjoys 10% tax rate applicable in 15 years since the project is operated; enjoy tax exemption in 04 years since the taxable income is generated and 50% tax reduction in 9 subsequent years.
One price policy: Apply one price policy to fees including clean water, raw water, garbage collecting, construction and other fees under the authorization of the People's Committee of Hue city. Training cost support: If technological line is changed, investors are supported a maximum of 30% first advanced training or retraining cost (applied to workers who directly join in manufacture process) in domestic vocational training centers. Under circumstance, workers are trained in accordance with technology transfer contract in company or oversea, investors is eligible to abovementioned policy. However, the support rate is equal to rate applied to domestic vocational training centers.
Corporates which build and apply advanced quality management systems such as ISO 9000, ISO 14000, SA8000, HACCP and GMP enjoy 30% support on consultant and certification expenses that enterprises pay in accordance with the contract reviewed by competent agencies.
Corporates, individuals register trademark copyright, invention authorization, etc are supported 50% requested expense in accordance with the contract reviewed by competent agencies.
Besides, many promising investment incentive policies are being applied in Chan May - Lang Co economic zone - the multi-sectoral multi-disciplinary industrial zone of Hue city.
Pursuant to the new regulation of Ministry of Finance, new investment projects in Chan May - Lang Co industrial zone enjoys 10% corporate income tax in 15 years since operation and tax exemption in 4 years since corporates' taxable income is generated.
This tax rate is reduced 50% in 9 subsequent years. After being approved by the Government, small and large investment projects as well as projects having essential meaning to sectoral development enjoy 10% corporate income tax during implementation period.
Loss carried forward is deducted from taxable income in the followings years if corporates face loss after having balance sheet submitted to tax office. Carry forward period is no more than 5 years.
High income earners (both Vietnamese and foreigners) working in chan May - Lang Co economic zone enjoy 50% income tax reduction applied to regular and irregular incomes earned from working time the industrial zone.
As regulated in the new regulation, goods from non-tariff zone exported oversea and vice versa, goods from non-tariff zones moved or sold to other non-tariff zones are not eligibility to export or import tax.
Goods are manufactured, outsourced, recycled and assembled in non-tariff zone are applied incentive import tax CEPT if satisfy current regulations. In addition, manufacturing investment projects in Chan May - Lang Co economic zone of domestic and foreign organizations/individuals enjoy an exemption from export tax applied to manufacturing materials, supplies, component parts and semi- finished products that have not been manufactured in Vietnam in 5 years since the date of starting manufacturing.