Lawmakers greenlight incentive policies on Van Phong Economic Zone

The decree, which will be effective for five years starting Aug. 1, prioritizes investment in building innovative, creative and research and development centers, information technology, oceanic and maritime high-tech research and manufacturing with an investment of at least VND1.5 trillion ($64.55 million).

Investors are also allowed to operate a trade and finance center with an investment of at least VND12 trillion.

Van Phong will also seek to attract investors in construction and urban development with an area of at least 300 hectares or designed for a population of at least 50,000 people.

Other investment categories that will be prioritized are resort, hospitality, golf and entertainment with an investment of at least VND25 trillion.

Van Phong will allow special policies for investment in airports and seaports to investors with a charter capital of at least VND10 trillion or a total asset value of at least VND25 trillion.

The investors need to ensure their commitments in national security and environment.

The investors will receive many incentives, such as being able to multiply its research and development costs by 1.5 times when calculating corporate income tax. This amount will be deducted from total expenses when taxed.

Investors will also be prioritized in customs procedures.

Central Khanh Hoa Province will be allowed to get loans by issuing bonds or borrow from local or foreign sources with a value of up to 60 percent of the annual government provision.