Investment guidance in Thanh Hoa Province

 

Part 1

OVERVIEW OF THANH HOA 

ThanhHoa has an area of 11,111.4 km2; The population is over 3.5 million; Compared to other provinces in the country, itranksfifth in area and third in population. The province has 27 district-level administrative units, including 02 cities, 01 town and 24 districts with 635 communes, wards and townships.

ThanhHoaislocatedat the gateway of exchanges between the North and the Central, and has awide range of transportation systems, includingrailway, road, waterway and airway. With the North-South railway running through, alongwith National Highway 1A, National Highway 10, National Highway 45, National Highway 15A, National Highway 217, Ho Chi Minh Road; Na Meo International Border Crossingis open to Lao People'sDemocraticRepublic and northeasternThailand; Nghi Son deep-water ports are capable of receivingships of over 50,000 tons; EspeciallyTho Xuan Airport, whichis operating flightsfromThanhHoa to Ho Chi Minh City, NhaTrang City (KhanhHoa Province), Buon Ma Thuot City (Dak Lak Province), in the near future willdevelopintoan international airport, an alternative airport for Noi Bai International Airport. They are favorable conditions for ThanhHoa to developitseconomy and society, calling for investment and trade, linking to other provinces in the country and different countries in the region and internationally.

With a coastline of 102 km, ThanhHoa has manyfamous sites such as Sam Son city, Hai Tien tourist area, Hai Hoatourist area; With 1,535 historical and cultural relics, especiallyThanhDynasty - a world Cultural Heritage, LamKinhSpecial National Monument, Ba Trieu Temple, Ham RongHistoric Site, and otherscenic spots such as Ben En, Pu Luong, Cam Luong fishstreamThanhHoa has favorable conditions to develop the tourismindustryinto a keyeconomicsector of the province. Along withthat, owningrich and diversifiednaturalresourcessuch as land, forest, sea and manykinds of mineralswithhighreserves, ThanhHoa has favorable conditions for development of agriculture, forestry, industry, fishery, construction and services.

Nghi Son Economic Zone wasestablishedwithmany open mechanisms and policies; many infrastructure works have been invested and built, attractingmanydomestic and foreigninvestors. Atpresent, many important infrastructure workssuch as main road system, seaport, power supply, water supply, telecommunication or garbagetreatment have been put into use effectively; Some major industrialprojects have been put intooperationsuch as Nghi Son 1 Thermal power plant (600 MW), Nghi Son Cement (4.3 million tons per year), CongThanhCement (02 million tons per year); A number of keyprojectswithhuge influence are underinvestmentprocesssuch as Nghi Son petrochemicalrefinery (capacity of 10 million tons of crudeoil per year), Nghi Son II Thermal power plant (1,200 MW) CongThanh Thermal power plant (600 MW). Whenfinishing the construction and being put intooperation, theseprojectswillcreate a breakthrough in the economicrestructuring of the province and the North Central. Along with the development of the economic zone, there are 04 industrial zones (1,100 ha) already in operation (occupancy rate of about 50%) withsynchronouslyinvested infrastructure and many favorable mechanisms&policies; In the future, the establishment of 04 new industrial zones willbe a greatadvantage to attractinvestors to the province.

In addition, with the working-age population of over 2.2 million people, of which the trainedlabor force in 2016 accounts for 58%, itwillcreate favorable conditions to attract the investmentprojectsrequiringlabor force and manufacturing industries requiringhighlyqualifiedworkers. In addition, the synchronous system of healthfacilities and training schools, including: 12 provincial hospitals, 25 district hospitals, 27 district healthcenters, two central hospitals, 10 non-state-ownedhospitals and four universities, six professionalcolleges, five vocationalcolleges and many middle schools. They are favorable conditions for attractinginvestment in the sectors of health and training humanresources for enterprises and investors in the province and surrounding areas.

 

Part 2

THE SOCIO-ECONOMIC DEVELOPMENT OBJECTIVES IN THE PERIOD 2016-2020 OF THANH HOA PROVINCE

In the period of 2016 - 2020, ThanhHoa province determines development objectives: Take advantage of new opportunities; Continue to strongly improve the investment environment, mobilize and efficiently use resources for development and investment; Accelerate economic restructuring associated with the transformation of growth patterns; Considering agricultural development and new rural construction as the foundation, industrial development is the key, and tourism and services that have advantages are the focus. To enhance the application of scientific and technological advances, raise the quality of human resources; To take care of the socio-cultural development, improve the material and spiritual life of the people; To pay attention to environmental protection, efficiently use natural resources and take initiative in responding to climate change, ensuring fast and sustainable development. Maintaining political stability, strengthening national defense and security, ensuring social order and safety.By 2020, to strive to become a top province of the whole country, by 2030 basically to become a modern industrial province.

Some of the objectives are presented below:

-             Gross output growth rate in the province (GRDP) on the average of 5 years reach 12%/year or higher.

-             GRDP per capita in 2020 reach 3,600USD or more.

-             Economic proportion in GRDP in 2020: Agriculture, forestry, fishery accounting 12%, industry-construction account 53.7%, service accounting 34.3%, taxing accounting 4.5%

-             The average annual food output is stable at 1.5 million tons;

-             The total export value in 2020 is USD 2 billion or more;

-             The total mobilized capital of the whole society in 5 year period reach 610 billion;

-             The rate of urbanization in 2020 is 35% or higher;

-             The rate of communes meeting the new rural standards in 2020 is 50% or higher;

-             The annual average productivity growth rate of social labor is 11%.

Part 3

INTRODUCTION OF INVESTMENT POTENTIALS AND OPPORTUNITIES IN SOME KEY AREAS OF THE PROVINCE

 

I. NGHI SON ECONOMIC ZONE

1. Location

Nghi Son economic zone is located about 50 km from ThanhHoa city, about 60 km from ThoXuan airport and about 200 km south of Hanoi. The total area of the economic zone is 106,000 ha, of which there is 66,497.57 ha of land and islands and 39,502.43 ha of water surface.

2. Main development objectives

- To build Nghi Son economic zone into a dynamic development area, the key development in the southern key economic region of the North; At the same time, it is the bridge between the North, the Center and the South, with the markets of Southern Laos and Northeast of Thailand, creating the motive for the rapid socio-economic development of ThanhHoa province and neighboring provinces. This also helps to narrow the development gap with the key economic region of the North and the whole country.

- To build and develop Nghi Son economic zone into a multi-branch and multi-sector economic zone with the focus on heavy industry and basic industries such as the petrochemical industry, steel rolling industry, ship building & manufacturing, power industry, constructioni materials manufacturing, consumer goods manufacturing, processing and export, associated with constructing and exploiting efficiently Nghi Son seaport. To form key products with high quality and competitiveness, high-class services; boost exports; Expanding to the regional and world markets.

- Create more jobs, promote training and improve the quality of human resources; To step by step form a center for training high quality human resources in the region.

3. Planning for development of branches and fields

a) Nghi Son port: The planned area is 2,020 ha, of which the land area is 916.8 ha, the water area is 1,103.2 ha; Including general wharves, containers and specialized wharves, capable of receiving ships of over 50,000 DWT, handling capacity of hundreds of millions of tons per year.

b) Industrial zones

- The petrochemical refinery complex: The planned area is 504 ha, of which 394 ha belongs to the factory area of the first phase and 110 ha is planned for the capacity expansion of 20 million tons per year.

- Nghi Son Thermal Power Center: The project area is 347 hectares, including the premises of Nghi Son 1 thermal power plant, Nghi Son 2 thermal power plant and specialized port area (20 hectares);

- Nghi Son Steel Rolling Complex: planning area of 630 ha.

- Concentrated industrial parks include: industrial zone No.1 (planned area of 241 hectares); Industrial zone No. 2 (128 hectares); Industrial zone No. 3 (247 ha); Industrial park No. 4 (385 hectares); Industrial zone No. 5 (462 hectares); Industrial zone No. 6 (350 hectares).

c) Other functional areas:

- Central urban area: 1,613.28 hectares;

- Urban area No. 3: 572.2 ha;

- Public Service Center area: 38.70 ha;

- Nghi Son Island Ecotourism Area: 100 ha;

- Truong Lam solid waste treatment area: 40.03 ha;

- North Nui Xuoc Public Service Area: 14.58 ha.

- Other functional areas such as residential area, resettlement area, golf course

d) Technical infrastructure

- Transport system

+ Road: Located on the North - South transportation axis, Nghi Son EZ has National Highway 1A and North - South Highway pass through. There is a system of road traffic between regions in the province and Nghi Son EZ's regions. Roads linking the central urban area to Nghi Son industrial and port sites, east-west axes linking Nghi Son port to the north-south highway, and Ho Chi Minh road.

+ Railways: The national railway running through is over 15 km in length, of which Khoa Truong Station (200 km from Hanoi Railway Station) is expected to be upgraded and expanded into passenger and cargo stations of Nghi Son EZ. This is being studied  to have railroad connection with Nghi Son port to facilitate import and export of goods through Nghi Son port.

- Power system: Nghi Son EZ uses the national power grid of 500 KV North - South and 220 KV ThanhHoa - Nghe An. It has 220/110/22 KV - 250 MVA transformer stations, granted for production and living needs.

- Water supply: raw water is taken from Yen My and Muc river reservoirs; The first phase pipeline to Dong Chua lake with the capacity of 30,000 m3 / day; Phase 2 pipeline is under construction, with a capacity of 90,000 m3 / day and night. Having completed the first phase of clean water supply plant with the capacity of 30,000 m3 / day; Phase 2 increases capacity to 90,000 m3 / day; A factory in the western part of National Highway 1A with the capacity of 20,000 m3 / day is under construction.

- Telecommunication: Developed with various types of advanced services, broadband, high speed and modern technology.

4. The current status of attracting investment in Nghi Son EZ

Nowadays, Nghi Son EZ has attracted 164 investment projects, including: 151 domestic projects with total registered capital about VND 109,604 billion and 13 foreign projects with total registered capital about USD 12.71 billion. There are a number of big projects, namely Nghi Son Oil refinery complex USD 9.3 billion, capacity of 10 million tons of product per year, Nghi Son Cement Plant USD 662 million with a capacity of 4.3 million tons per year; Cong Thanh cement plant USD 600 million, capacity of 5.8 million tons per year; Nghi Son Thermal Power Center, USD 2.54 billion, with a total capacity of 2,400 MW; Nghi Son steel rolling mill capacity 7 million tons / year.

II. INDUSTRIAL ZONES IN THANH HOA PROVINCE

1. Lam Son – Sao Vang industrial zone

1.1. Location

Lam Son - Sao Vang Industrial zone is located in ThoXuan district, ThanhHoa province, in the western part of the province; About 40 km from ThanhHoa city; Near the industrial zone is ThoXuan Airport, Ho Chi Minh Road and Highway 47.

1.2. Development objective

ThanhHoa is concentrating on building Lam Son - Sao Vang Industrial zone into hi-a tech industrial zone and hi-tech agricultural area; In the future, along with Nghi Son Economic Zone, this industrial zone will become the driving force for economic development of the province.

1.2. Scale: 592.3ha

1.3. Investment-attracting industries: Manufacturing electronic components and telecommunications devices, assembling electrical and electronic devices

2. Bim Son industrial zone

2.1. Location

Bim Son industrial zone is located in Bim Son town, ThanhHoa province, in the northern part of the province; About 30 km from ThanhHoa city and 120 km south of Hanoi; Near the industrial area is Highway 1A, North-South railway. This is an industrial zone which is geographically convenient for traffic, electricity, water supply and other services.

2.2. Scale: Area 566 hectares, already having infrastructure investors, including:

+ Area A: Located west of National Highway 1A, area of 308 ha.

+ Area B: Located east of National Highway 1A, area of 258 ha.

2.3. Investmen-attracting industries:

Assembly of small trucks, agro-forestry processing, machine building, mechanical repair, steel rolling, construction materials producing, etc.

2.4. Situation of attracting investment:

Bim Son industrial zone currently has 03 enterprises investing in technical infrastructure system. Attracted 23 domestic investment projects with a total registered capital of 6.411 trillion dong and 02 foreign investment projects with a total registered capital of $ 14.15 million, of which there are enterprises operating effectively, namely VEAM automobile plant (capacity of 33,000 vehicles / year), gas refining plant, construction material factory, cement packaging factory, Yada steel structure factory, medium-size four-wheeled tractors manufactoring factory etc.

3. Hoang Long industrial zone

3.1. Location

Hoang Long Industrial zone is located in ThanhHoa city, ThanhHoa province; 3 km from downtown ThanhHoa; Near the industrial zone is National Highway 1A and North-South railway.

3.2. Scale: 286.0 ha, infrastructure investors are currently building the zone.

3.3. Industries attracting investment: Electronics, software, mechanics, machine assemblies, hi-tech assemblies, home appliances

3.4. Situation of attracting investment:

Up to now, it has attracted 18 domestic investment projects with a total registered capital of VND2,635 billion and four foreign investment projects with total registered capital of US $ 135 million, of which two are footwear for exports manufactoring factories by Hong Fu Group (Taiwan) in this industrial zone.

4. Ngoc Lac industrial zone

4.1. Location

Ngoc Lac industrial zone is located in QuangTrung commune, Ngoc Lac district, ThanhHoa province. 70 km from downtown ThanhHoa; Near the industrial park is Ho Chi Minh Road, Highway 15A.

4.2. Scale

Total planning area of the whole industrial zone is about 150 hectares.

4.3.Industries attracting investment

Textiles, leather and footwear, automobile production and assembly, mechanical engineering, production of high-grade construction materials, steel structure, electronics, high technology products, processing agricultural and forestry products for export etc.

5. ThachQuang industrial zone

5.1. Location

Administrative boundary of ThachQuang and ThachTuong communes.Located west of ThachQuang city.500m west of Ho Chi Minh Road.

5.2. Scale

 The total area is 140 hectares, of which industrial land is 85.38 hectares.

5.3. Industries attracting investment

processing agricultural & forest products, food, animal feed, fertilizer and construction materials.

6. BaiTranh industrial zone

6.1. Location

- The location is on the administrative boundary of XuanBinh Commune. Located in the southeast of the urban area, on the axis of Nghi Son - BaiTranh.33km south of NhuXuan Commune center. 4.8km from Ho Chi Minh Road, 48km from Nghi Son port. Area of 116 hectares.

6.2. Scale Planning area: 179.03 ha, of which industrial land is 145.7 ha.

6.3. Industries attracting investment

 Processing agricultural, forestry and mineral products and producing construction materials. After 2017, BaiTrang Industrial Zone attracts the projects of processing after-oil-refining products of Nghi Son Refinery complex.

7. Le Mon industrial zone

7.1. Location

Le Mon Industrial Zone is located in ThanhHoa City, ThanhHoa Province; About 06 km from the city center; Near the industrial area is National Highway 1A, Highway 47, North South railway.

7.2. Scale

87.61 ha (fully occupied).

7.3. Industries attracting investment

Consumer goods industry; Textiles and footwear for export; Agricultural, forestry and fishery processing; Mechanical production and assembly; Telecommunications devices; Software production;  High-grade building materials production; Traditional handicrafts etc.

 7.4. Situation of attracting investment

 Currently, many projects are operating effectively, especially the projects of Japanese enterprises such as Sakurai Vietnam garment factory, Yotsuba Dress garment factory, Nomura ThanhHoa garment factory, footwear for export factory.

8. DinhHuong - Northwest Railway Station Industrial Zone

8.1. Location

 Located on the north of ThanhHoa city, close to National Highway 1A, 2 km from city center, 7 km from Le Mon port, 3 km from North - South railway station.

8.2. Scale

162.7 hectares, today has basically been filled up.

8.3. Industries attracting investment

Producing high quality industrial products in Northwest Railway Station Industrial Zone, phase 2.

8.4. Situation of attracting investment

It has attracted 235 domestic investment projects with a total registered capital of 2.463 trillion dong and four foreign investment projects with total registered capital of $ 11.85 million. At present, there are many projects being operated effectively such as Z111 mechanical engineering factory, steel factory, paper packaging factory, etc.

III. THANH HOA CITY

1. Location

ThanhHoa city is the political, economic, cultural, educational, medical, scientific and technical center of ThanhHoa province; 150 km south of Hanoi; 30 km from ThoXuan Airport.

2. Area, population

Total natural area of 146.77 km2 with 20 wards and 17 communes; The population is about 406,550 people; It is one of the cities with the largest population size and area in the North; Urban infrastructure, transport, electricity, water supply and telecommunications are relatively synchronous.

3. Investment potential

- Development of urban areas: With the aim of building synchronized and modern urban infrastructure with Sam Son city and Dong Son district; To focus on building a new urban center in the synchronous city, form a model urban area, creating a new face for the city.

- Tourism development: More than 50 national-level relics and monuments at the provincial level have been classified, such as Ham Rong cultural and historical monument, Uncle Ho memorial site, Truc Lam monastery, Temples of Vietnamese heroic mothers and heroic martyrs, Dong Son ancient village; At present, the monuments have been planning, preserving, embellishing and promoting the value associated with tourism development.

- Development of health services: According to the master plan for health development in ThanhHoa province, by 2030, a comprehensive system of health services will be established to serve the needs of people in the province and patients from neighboring or other provinces; At present, ThanhHoa province is orienting the development planning of a health city in ThanhHoa city.

- Development of education and training services: As a center of education and training of the province, ThanhHoa city has a system of education, training, and vocational training which is relatively synchronized. Many teachers and lecturers are highly qualified; The signficicantly high demand for education and training of people and laborers are great conditions for the development of education and training services in the city,especially high quality education and training services.

IV. SAM SON CITY

1. Location

Sam Son city is a coastal city, tourist center, famous for resort services of the province and the whole country; 15 km east of downtown ThanhHoa; There are major roads running as Highway 47, Ma River Boulevard, and Voi crossroad.

2. Area, population

Sam Son City currently has 11 communes and wards with the total area of 44.94 km2; Population 150,902 people.

3. Investment potential

With a coastline of over 10 km, there are domestic and internationally famous and beautiful beaches; There are Truong Le Mountains and more than 16 historical monuments which have been classified, such as the Temple of Literature, Co Tien temple, Trong Mai temple; In addition, favorable transportation infrastructure, synchronous and modern urban infrastructure are favorable conditions for tourism development, especially the development of luxury resort and tourist services.

V. HAI HOA BEACH RESORT AREA

1. Location

HaiHoa beach resort is located in TinhGia district and Nghi Son economic zone; About 40 km from ThanhHoa city; about 60 km from ThoXuan Airport; National Highway 1A and North-South railway run through.

2. Planning

The total planning area of HaiHoa beach resort is 154 ha, of which:

- Land for eco-tourist four seasons resort  (phase 1): 23.3 ha.

- Land for coastal services and sandy beach (ecotourist four seasons complex phase 1): 10.6 ha.

- Land for eco-tourist four seasons resort  (phase 2): 58.5 ha.

- Land for coastal services and sandy beach (ecotourist four seasons complex phase 2): 12 ha.

- Land for external communication and traffic: 3.5 hectares.

- Land for functional areas: Public works area 4.71 hectares; hotels area 11.96 hectares; Green parks, coastal service works 43.76 ha; housing and residential areas renovation.

3. Investment potential

With a nearly 10 km long beach and wild & beautiful natural scenery, along with unique monuments such as Nghi Son beach attached to the island bay, Do Xuyen sea village, Truong Lam cave, Lach Bang temple , TinhHai Fortress, etc. and convenient transportation system, HaiHoa has favorable conditions for tourism development, especially beach resorts.

VI. HAI TIEN BEACH RESORT AREA

1. Location

HaiTien beach resort area is located in the wards of Hoang Truong, Hoang Hai, Hoang Tien, Hoang Thanh, Hoang Phu, Hoang Hoa district, ThanhHoa province; About 25 km north of ThanhHoa city; About 130 km from Hanoi capital; about 10 km from National Highway 1A.

2. Planning

The total planning area to 2020 is 400.64 hectares.

3. Investment potential

With long beaches, and wild & beautiful natural scenery; casuarina covers over 12 km of coastline; besides, there are surrounding mountains, which are favorable conditions to develop tourism, especially luxury resorts.

 

 

Part 4

INVESTMENT INCENTIVE POLICIES

ThanhHoa province applies investment incentive policies on the principle that investors can have the highest incentives in terms of rights and lowest obligations in the regulatory framework. In addition to the general provisions of the current law, depending on the size and nature of each project, on the basis of consideration of the proposal of investors, the province will have special support for large projects. which play an important role in promoting the process of economic restructuring and creating a breakthrough in the socio-economic development of the province. Some specific provisions are as follows:

I. Investment incentive policies in ThanhHoa province (outside Nghi Son Economic Zone and Industrial Zones)

1. Governmental policies

1.1. Land and water surface rent incentives (according to Government Decree No. 46/2014 / ND-CP dated 15/5/2015)

- Exemption from land rent or water surface rent for projects in the domains eligible for special investment incentives invested in extremely difficult socio-economic regions; The projects use land to build houses for workers in industrial zones.

- Land rents and water surface rents shall be exempt during the time of capital construction under projects approved by competent authorities, which, however, must not exceed 3 years as from the date of issuance of decisions on land or water surface rent.

- Exemption from 3 years to 15 years (after the time of exempting land rent, water surface rent for capital construction) for each type of projects in different preferential areas.

1.2. Enterprise income tax incentives (as stipulated in Decree No. 218/2013 / ND-CP dated 26/12/2013 by the Government)

Newly-established enterprises from investment projects, depending on the fields and geographical areas entitled to investment incentives enjoy a preferential tax rate of between 10% and 17%, applicable for 10 years, 15 years or throughout the operation duration. At the same time, tax exemption from 2-4 years and 50% reduction of tax in the next 4 - 9 years.

1.3. Import tax and export tax incentives (according to the Government's Decree No. 134/2016 / NĐ-CP dated 01/9/2016)

Investors are exempt from tax in the following cases:

- Goods imported for processing, processed products for export; Goods exported for processing, processed products for import.

- Goods imported for the production of export products; Goods imported to create fixed assets of the subjects entitled to investment incentives.

- Goods imported for petroleum activities; Projects, shipbuilding establishments on the list of industries eligible for investment incentives.

- Raw materials, supplies and components which cannot be produced at home and are imported for production under investment projects on the list of specially encouraged industries or trades or areas with specially difficult socio-economic conditions; production and assembly of medical equipment of the investment project (exemption within 05 years).

1.4. Incentive treatment for investment projects in agriculture and rural areas (as stipulated in Decree No. 210/2013 / ND-CP dated 19/12/2013 by the Government).

- Exemption from land use fees and land rent for agricultural projects eligible for special investment incentives.

- 70% reduction of land use fees; Free of land rent or water surface rent for the first 15 years for agricultural projects eligible for investment incentives.

- 50% reduction of land use fees; Exemption from land rent or water surface rent for the first 11 years for agricultural projects encouraging investment.

- To be rented at the lowest price according to the land rent frame prescribed by the provincial People's Committee for incentive agricultural investment projects or encouraged agricultural investment projects.

1.5. Incentive policies for socialization activities in the fields of education, vocational training, health, culture, sports, environment, judicial expertise (as stipulated in Decree 69 Decree No. 59/2014 / ND-CP dated 16/6/2014 of the Government about amending and supplementing some articles of the Decree No. 69 / 2008 / ND-CP dated 30/5/2008)

- Establishments conducting socialization activities are allocated or leased land by the government for construction of socialization works in the form of land lease and land rent exemption in the rental period.

- The socialization establishments earning incomes from social mobilization shall enjoy the enterprise income tax rate of 10% throughout the operation duration.

- Newly established socialization establishments shall be exempted from corporate income tax for 4 years after the taxable income is generated and a 50% reduction of enterprise income tax for 5 subsequent years.

2. Policy of ThanhHoa province

2.1. Policy on encouraging socialization of activities in the fields of education, vocational training, health care, culture, sport and environment in the province (according to Decision No. 4294/2011 / QD-UBND)

a) For culture, sports and environment: 100% land use or land rent exemption.

b) For education, vocational training and health:

- The establishments conducting socialization investment in the fields of Eastern medicine, nursing and rehabilitation, social protection, care for the disabled, orphans, vocational training for the disabled, teaching Children in particularly difficult circumstances: 100% land use, land rent exemption regardless of the investment area.

- The establishments conducting socialization investment in the fields of other education, vocational training, health care:

+ 60% reduction of land use fee, land rent for investment projects in wards of ThanhHoa city.

+ 80% reduction of land use fee, land rent for investment projects in communes of ThanhHoa city, wards of Bim Son town and Sam Son city.

+ To be exempt from land use fee and land rent for investment projects in Nghi Son economic zone, other communes and towns of Sam Son city, Bim Son town and districts of ThanhHoa province.

c) Other policies shall comply with the Government's Decree No. 69/2008 / ND-CP of May 30, 2008, on socialization policies in the fields of education, vocational training, health care, culture, sports, and environment.

2.2. Policy on encouraging the development of industry, small industry and commerce in ThanhHoa province (Resolution No. 29/2016 / NQ-HDND dated 08/12/2016 of the Provincial People's Council and Decision No.832 / 2017 / QD-UBND dated March 21, 2017 of Provincial People's Committee)

- Support for investment in the construction of industrial complex infrastructure: VND7-2.3bil / ha, depending on the area (maximum VND20 - 40bil / cluster).

- Support investment projects in industrial production, small industry in mountainous districts:

+ Support ground leveling, infrastructure for traffic, electricity, water, workshops and waste treatment: 01 - 02 billion VND / ha depending on the location.

+ Support for labor training costs: 0.7-1.5 million VND / person depending on the location and employer.

- Support for development of cottage industry: VND 300 million / craft village.- Support for land rental for market investment: 30

- 100% of land rent for the whole duration of land lease for the projects of exploiting the market, depending on the location.

2.3. Policy on support for solid waste treatment in ThanhHoa province, 2016-2021 (Resolution No. 28/2016 / NQ-HDND dated 08/12/2016 of the Provincial People's Council and Decision No. 721/2017 / QD-UBND dated March 9, 2017)

- Assistance for daily-life solid waste: VND 320,000 / ton, including:

+ Solid waste treatment project at Dong Nam commune, Dong Son district (capacity of 500 tons / day and night) with mixed technology.

+ Projects on daily-life solid waste treatment in four key treatment zones of the province under planning (with a capacity of 200 tons / day and night) by burning technology.

+ Solid waste treatment projects at other locations in the province (capacity of over 100 tons / day and night) by burning technology.

- All financial support for the construction of infrastructure works outside the project (roads, water supply and drainage systems, and electricity systems) shall be supported for these aforementioned projects.

2.4. Policy on encouraging the restructure of Thanh Hoa's agricultural sector between 2016-2020 (stipulated in the Decision No. 5643/2015 / QĐ-UBND dated 31/12/2017 by the People's Committee of Thanh Hoa province)

- Support for the development of concentrated safe vegetable production:

+ For concentrated safe vegetable production: a one-time allowance of VND 170 million/ha for delta and coastal areas and VND 200 million/ha for mountainous areas for constructing and upgradingthe infrastructure of the concentrated area, the factory of preliminary treatment and safe vegetable product packing plants to meet VietGAP technical requirements; financial support for VietGAP certification of safe vegetables with 7 million VND / ha; support for quality control and stamping with 16 million VND/ha per year for the delta and coastal areas and 18 million VND/ hectare for mountainous areas.

+ For safe vegetable production in green house: One-time support for investment, construction of green house for vegetable production is 50,000 VND / m2.

+ For consumption of safe vegetable products: support for the cost of renting or building new safe vegetable shops with the capacity of VND 50 million / shops located in wards of provincial towns and cities and VND 30 million / store in other communes and towns.

- Support to buy sugarcane harvesting machines and irrigation cane fields:

+ Financial support for sugarcane harvesting machines: The scale of production of each 50 ha will be supported to buy 01 sugarcane machines (new machines) with the capacity of 120 tons / day or more, with the support level of 20% of its purchase price on the sales invoice as prescribed, but not exceeding VND 1,500 million / machine.

+ Support for construction of irrigation system on the field: One – time support for the construction of irrigation system based on the regulations, with the support level of 15 million VND / ha.

+ Support for the development of intensive cultivation zone of dendrocalamus: support for fertilizer in the first and second years to implement intensive cultivation of dendrocalamus with the support level of 2 million VND / ha / year.

- Support for large-scale concentrated production: Financial support for land rent and water surface rent of households and individuals for 5 years after the project comes into operation, including: 3 million VND / ha / year for rice prodcution, specialty rice, maize, sugar cane, thick corn, fodder grass and fruit trees (oranges, pomelo); 4 million VND / ha / year for water surface rent for intensive tilapia farming in association with  the processing for export; support for water surface rent with 6 million VND / ha / year for intensive white shrimp farming.

- Support forjoint production and crop cultivation: support for the production of potatoes, tomatoes, pumpkins, onions, garlic, vegetables with 5 million / ha of cultivation per year; support to produce sweet corn, baby corn, baby melon, export melon, chilli for export with 3 million VND / ha of cultivation year; support for the production of thick maize and grass for dairy cattle, beef cattle with 2 million per ha of cultivation per year; support 1.5 million VND / ha of cultivation per year to pre-processing, the preservation of  agricultural products, markets expansion.

Support for ground clearing: The People's Committee of Thanh Hoa province shall allocate 100% of the budget to compensate the ground clearance and hand over the clean ground to the enterprises for the construction of agricultural and forest product processing establishments. Concentrated slaughterhouses and hatcheries of white leg shrimps and unisex tilapia in the province as regulated (no support for nursery and nursery grounds).

II. Incentive policies to support investment in industrial zones in the province

In addition to the incentive investment policies applicable to all investment projects in the province mentioned above, investment projects in industrial zones in ThanhHoa province are entitled to the highest investment incentives and supports, according to regulations for areas with difficult socio-economic conditions under Clause 2, Article 16 of the Investment Law 2014.

1. Government incentives

1.1. Land and water surface rent incentives (Not applicable to industrial zones in ThanhHoa city and subleasing projects of infrastructure investors)

- Exemption from land rent or water surface rent during the capital construction period but not exceeding 3 years; Exemption from 7 - 15 years from the date the project comes into operation depending on the field of project industry.

- Exemption of land rent and water surface rent throughout the duration of project implementation for projects in a number of domains according to the Government's regulations.

1.2. Corporate income tax incentives, export tax and import tax

Depending on the industry and field, investment projects in industrial zones in ThanhHoa province are entitled to investment incentives in accordance with the legal documents about corporate income tax and export tax and import tax.

2. Policy of ThanhHoa Province

Policy on encouraging investment consultancy services in industrial zones of ThanhHoa province (according to Decision No. 3667/2013 / QĐ-UBND dated 18/10/2013 by ThanhHoa People's Committee on the policies to encourage and support investment in Nghi Son EZ and industrial parks in ThanhHoa province): Organizations and individuals who have merit in mobilizing investment projects on the list of encouraged investment fields in industrial zones in ThanhHoa province shall be rewarded according to the investment capital scale of the project, 500 million.

III. Incentive policies, supporting investment in Nghi Son Economic Zone

Apart from the preferential investment policies applicable to all investment projects in the above mentioned province, the investment projects in Nghi Son EZ shall also enjoy a number of preferential policies and special investment supports, specifically as follows:

Nghi Son EZ is entitled to the highest incentives and investment support for areas with specially difficult socio-economic conditions under Clause 2, Article 16 of the Investment Law 2014.

1. Government policies

1.1. Incentives on land rent, water surface rent

        - Exemption from land rent, water surface rent during construction time; Exemption from 11 years to 15 years from the date the project comes into operation depending on the field of the project.

- Exemption of land rent and water surface rent throughout the duration of project implementation for projects in the field of special investment incentives - as stipulated by the Government.

1.2. Corporate income tax incentives

- The enterprise income tax rate is applied 10% for 15 years after the investment project starts its business; To be exempt from corporate income tax for four years from the time the taxable income is generated and a 50% reduction of the payable tax for the next nine years.

- Projects in the field of high technology; For projects of large scale and significant importance for the development of branches and domains or the socio-economic development of the province and its regions, the preferential tax rates may be extended for up to 30 years. .

1.3. Preferential import tax, export tax

 - Exemption of import tax on goods for creation of fixed assets and specialized means of transportation included in technological lines in service of investment projects, means of transporting workers, etc.

- Exemption of import tax for a period of 5 years from the date the project goes into production for production raw materials, supplies, components and semi-finished products that Vietnam has not yet produced or under standard quality.

1.4. Personal income tax incentives

50% reduction of income tax on income earners, including Vietnamese and foreigners working in the economic zone.

2. The policies of ThanhHoa province

2.1. Policy on encouraging investment consultancy services in Nghi Son Economic Zone. (Decision No. 3667/2013 / QD-UBND dated 18/10/2013 of ThanhHoa PPC on promulgation of incentive and support policies Invest in Nghi Son EZ and industrial zones in ThanhHoa province).

Organizations and individuals who have made meritorious contributions to the mobilization of investment projects on the list of those encouraged for investment in Nghi Son EZ shall be rewarded as mobilizing investment in industrial parks in ThanhHoa province.

2.2. Support policy for enterprises with investment projects in industrial parks of Nghi Son EZ No. 3, 4 and 5. (Decision No. 3667/2013 / QD-UBND dated 18/10/2013 of ThanhHoa PPC on promulgation of incentive and support policies Invest in Nghi Son EZ and industrial zones in ThanhHoa province).

Provincial budget supports 10% of leveling costs for enterprises having investment projects in industrial parks of Nghi Son EZ No. 3, 4 and 5 on the basis of finalization dossiers approved by the Nghi Son EZ Management Board, the maximum support level does not exceed 500 million VND / ha.

 

 

PART 5

UNIT PRICE OF LAND RENT AND OTHER EXPENSES

1. Unit price of land rent

1.1. Methods of calculation for the unit price of land rent

- Land rent unit =the percentage (%) of unit price of land rent x land costs (according to the purpose of land use promulgated and announced by the People's Committee of Thanh Hoa province annually).

- Unit price of land lease of each project is stable 05 years.

1.2. Unit price of land rent

a. Applied by the areas

No.	Areas	The percentage (%) of the unit price of land rent
1	Thanh Hoa city	1,2
2	Sam Son city, Bim Son town (excluding all poor or extremely difficult coastal communes)	1,1
3	All the plain suburban districts  (excluding mountainous communes): Đông Sơn, Hoằng Hóa, Quảng Xương, Yên Định, Thiệu Hóa, Triệu Sơn, Nông Cống, Thọ Xuân, Hậu Lộc, Vĩnh Lộc, Hà Trung, Nga Sơn, Tĩnh Gia	1,0
4	All the suburban districts of low mountain và mountainous communesof the plain suburban districts: Như Thanh, Cẩm Thủy, Ngọc Lặc, Thạch Thành và all poor and extremely difficult coastal communes	0,75
5	All the suburban districts of high mountain: Như Xuân, Thường Xuân, Bá Thước, Lang Chánh, Quan Sơn, Quan Hóa, Mường Lát	0,50

 

b. Applied by investment projects, investment fields with preferential and special incentives.
- Investment projects in industrial parks, projects in the field of investment incentives, land used for agricultural production, forestry, aquaculture, salt production:

No.	Areas	The percentage (%) of the unit price of land rent
1	Thanh Hoa city	0,85
2	Sam Son city and Bim Son Town	0,80
3	All the plain suburban districts  (excluding mountainous communes): Đông Sơn, Hoằng Hóa, Quảng Xương, Yên Định, Thiệu Hóa, Triệu Sơn, Nông Cống, Thọ Xuân, Hậu Lộc, Vĩnh Lộc, Hà Trung, Nga Sơn, Tĩnh Gia	0,75
4	All the suburban districts of low mountain và mountainous communes of the plain suburban districts: Như Thanh, Cẩm Thủy, Ngọc Lặc, Thạch Thành	0,60
5	All the suburban districts of high mountain Như Xuân, Thường Xuân, Bá Thước, Lang Chánh, Quan Sơn, Quan Hóa, Mường Lát	0,50

- Investment projects in Nghi Son economic zone (EZ) and investment projects in the fields of special investment incentives: 0.50%.

2. Some other expenses in Nghi Son Economic Zone and its vicinity

- Electricity price (22KV - 110KV): According to the price list of EVN 0.04 - 0.12 USD / Kwh (industrial production); 0.07 - 0.16 USD / Kwh (daily life);

- Water price: 0.3 - 0.59 USD / m3 (daily life) and 0.78 USD / m3 (industrial production);

- Fees for auxiliary services (telephone, fax, internet ...): determined by the service provider at a certain period of time;

- Hotel room rates: 10 - 250 USD / room / day night (by quality of service);

- Transportation costs: Taxes: 0.45 to 0.7 USD / km; Self-driving car rental: 35 - 70 USD / day (depending on vehicle quality); one-way ticket from Thanh Hoa to Ho Chi Minh City is 100 - 120 USD / person / way.

- Monthly car rental: 600 - 2,000 USD / car / month (depending on the quality of car).

3. Labor cost

- Minimum wage for unskilled labor: 100 USD / person / month;

- Average salary: 150 USD / person / month;

- Social insurance premiums: 26% (in which the company: 18%, laborers: 8%);

- Health insurance: 4.5% (in which the company: 3%, employees: 1.5%);

- Unemployment insurance: 2% (in which the company: 1%, employees: 1%).

Part 7
PROCEDURES OF INVESTMENT

Investors wishing to explore and invest in Thanh Hoa province will be guided and consulted free of charge and carry out administrative procedures quickly and conveniently from the time of the approval for investment policy until the investment procedures were completed and put into operation, with the process as follows:

- For investment projects in Nghi Son (economic zone)EZ and other industrial parks in the province: The Management Board of Nghi Son EZ and industrial parks shall act as the focal point, directly guide, consult and receive dossiers,deal with or coordinate with relevant agencies in resolving administrative procedures for investors.

- For investment projects outside Nghi Son EZ and industrial parks in Thanh Hoa province: The Department of Planning and Investment in Thanh Hoa shall act as the focal agencies to directly guide, receive dossiers and settle or coordinate with relevant agencies to deal with or guide investors to competent agencies, to carry out administrative procedures under the decentralization.
- The shortest period of timeto carry out the administrative procedures as prescribed by law.