Nghi Son Economic Zone Overview
Nghi Son Economic Zone was established and promulgated regulations according to the Decision No. 102/QD-TTg, dated May 15th 2006 by the Prime Minister. It located in the south of Thanh Hoa province, on the road connected North and South of the country, from Hanoi 200 km south, is a bridge between the Northern region with the Central, Northwest and South, with markets in South Laos and Northeast Thailand.
I. CONDITIONS OF NATURAL AND SOCIAL of Nghi Son EZ:
1. The potential and geographical location
Nghi Son Economic Zone (EZ Nghi Son) has a natural area of 18,611.8 hectares located south of Thanh Hoa province, on the way connected north – south of the country, from the capital Hanoi 200 km south, is a bridge between the northern region with the Central, Northwest and South, with the market in southern Laos and northeastern Thailand. Nghi Son port has the potential to develop into one of the largest sea port in the country with the capacity to receive vessels of up to 50,000 DWT tonnage, loading capacity up to hundreds of million tons / year. To achieve the objective of developing a multidisciplinary EZ attract heavy industries and basic industries such as petrochemical, high-grade steel rolling, thermal power, building materials, production and processing of commodities use and exports … The Government of Vietnam has issued and to apply the highest preferential policies for investors.
2. Climate
Average temperature in 23,40C, air humidity 85-86% annual average rainfall of 1,833 mm average.
3. Topography
The terrain varied, including: Mountains, plains and coastal areas. In plain that accounts for 60% of total area.
4. Population and labor
The total population of Thanh Hoa province about 3.5 million people, including labor force of 2.1 million people. Nghi Son Economic Zone’s population is over 80,000 people, including labor force of about 45,000 people. The labor force is largely Thanh Hoa young workers, have been educated graduate education and upper secondary school, have the ability to acquire science and technology and training of highly skilled labor. Thanh Hoa has the educational system and training is quite complete with enough educational levels and disciplines. At Nghi Son Economic Zone has Vocational School Nghi Son is active and Technology College Licogi are built to meet the training needs of thousands of technical workers.
To meet the demand for human resources for EZ, now Nghi Son Economic Zone Management Board is developing a scheme on training and development of human resources Nghi Son Economic Zone period 2015-2025 approved by the Government.
II. TECHNICAL – SOCIAL INFRASTRUCTURE
1. Transport system
– Road: Located on trunk roads north – south of Vietnam, the highway 1A and national north – south highway in the west of highway 1A pass through Nghi Son EZ. Systematic continuous road traffic between regions in the province and the region. The transport routes linking the urban center to the industrial zones and Nghi Son port, the East-West linking Nghi Son port with the North-South Expressway. Currently, Thanh Hoa province is urgent construction of Nghi Son EZ route from Tho Xuan airport, it is about 60km.
– Railways: Railways country run through Nghi Son Economic Zone over 15km in length, including station upgrades Faculty School is scheduled to expand into Central Station EZ:
+ From Hanoi Railway Station to Khoa Truong Railway Station: 200km.
+ From Ho Chi Minh city Railway Station to Khoa Truong Railway Station: 1.500km.
– Port: Nghi Son Port has built and put into operation the dedicated terminal of Nghi Son Thermal Power, Nghi Son cement manufactory and 03 different berths can accommodate vessels up to 30,000 DWT tonnage , loading capacity of about 5 million tonnes / year. In addition, there are now dozens of synthetic harbors, ports and container terminals and specialized synthetic logistic parks are being investors under construction.
From Nghi Son port location:
Ø to Hai Phong port: 119 nautical mile.
Ø to the port of Ho Chi Minh City: 700 nautical mile.
Ø to the port of Hong Kong: 650 nautical mile.
Ø to the port of Singapore: 1280 nautical mile.
Ø to the port of Tokyo: 1900 nautical mile.
– Aviation: The distance betweenTho Xuan Airpot EZ 4E and Nghi Son is about 60 km. Currently, Vietnam Airlines airlines are exploiting Thanh Hoa routes – Ho Chi Minh City with a frequency of 02 flights / day. Under the approved plan, the airport will be upgraded Tho Xuan expand into international airports to meet the development needs of the Nghi Son EZ and serves the travel needs of people in the province and in parks
2. Electricity system
– Nghi Son EZ is using the National Grid network including North-South 500 kV transmission line and 220KV Thanh Hoa – Nghe An, the existing substation 220/110/22 kV – 250 MVA ensure sufficient power supply to demand and domestic production.
– Nghi Son Economic Zone is the Government planning to develop into a major power center with a total capacity 2.400MW. In particular, the Nghi Son Thermal Power Plant of 600 MW I will be completed and generating in the first quarter 2014. The Nghi Son Thermal Power Plant II, a 1,200 MW by Marubeni Corporation (Japan) and Kepco (Korea Korea) investing in BOT expected to start construction by the end of 2014. Cong Thanh Thermal Power Plant 600 MW has been invested leveling.
3. Water supply
– Raw water: Raw water taken from Yen My lake (87 million m3) and Song Muc Lake (200 million m3) of water pipeline system rough. Pipeline Phase 1 provides a capacity of 30,000 m3/day for Dong Chua lake was built and put into operation. Pipeline Phase 2 capacity of 90,000 m3 / day is being invested from ODA, scheduled for completion in 2015.
– Water: There are two water supply factory are factory in Dong Chua lake have been building in phase I and is supplying with a capacity of 30,000 m3 / day; Phase II to increase capacity to 90,000 m3 / day and factory in the western region 1A, capacity: 20,000 m3 / day under construction, scheduled for completion in 2015.
4. Telecommunication services:
Telecommunication Network Infrastructure – Information Technology Nghi Son Economic Zone has been planned development with advanced services, broadband, high-speed and modern technology; have the ability to meet the demand for telecommunications services – information technology with the highest quality for our customers.
III. SOCIAL INFRASTRUCTURE
The school system, hospitals, commercial services, hotel – tourist … was planning sync. Several projects are under construction, such as eco-tourism zone of Nghi Son island, tourism and service area north of Nghi Son island resort, Complex General Services, Northern District public service Marked mountain, School Licogi collegial technology, worker housing area, commercial banks, insurance services … to meet the needs of housing, education, and entertainment of officials, experts and people in Nghi Son Economic Zone.
IV. PLANNING
1. On 10/10/2007, the Prime Minister has approved construction planning Nghi Son Economic Zone in Decision No. 1364 / QD-TTg. Until now, all the functional areas approved detailed planning 1/2000, including important areas such as:
a. Nghi Son Port: The Ministry of Transport approved the detailed planning of Decision No. 1401 / QD-BGTVT on 26/5/2010. The total area is 2,020 hectares planned, which is 916.8 ha land and water areas is 1103.2 hectares. Nghi Son port is planned including synthetic wharf, container and specialized berths capable of receiving ships 30000-50000 DWT, unloading capacity of 80 million tons / year.
b. The Industrial Park
– A petrochemical complex: Planned area 504 ha; 394 hectares including factory premises under phase 1 (including factory area, terminal and pipeline zones), 110 ha planned to phase capacity expansion to 20 million tons / year.
– Nghi Son Thermal Center: The planned area of 347 ha, including premises Nghi Son 1 thermal power factory, Nghi Son Thermal Power factory 2 and the dedicated port (20 ha);
– Concentrated industrial zones such as industrial zone 1 (241.29 hectares), Industrial Park No. 2 (128.37 ha), Industrial Park No. 3 (247.12 ha), Industrial Zone No. 4 (385.24 ha), Industrial Park No. 5 (462.87 ha), Metallurgical Industrial Park (473.60 ha).
c. The other functional areas
– Urban centers: 1613.28 ha;
– Urban Area 3: 572.2 ha;
– The Public Service Center: 38.70 ha;
– Eco-tourism zone of Nghi Son island: 100 hectares;
– Solid waste treatment area Truong Lam: 40.03 ha;
– North Mountain Park Public Service Marked: 14.58 ha.
There are also other functional areas already approved detailed planning, such as residential areas, resettlement area, Golf …
2. Orientation planned expansion Nghi Son EZ
Implementing the policy of the Prime Minister, Thanh Hoa province is making adjustment schemes, expanding the area of Nghi Son EZ approval process before 2015 include the entire region and 5 communes of Tinh Gia district of Nong Cong, Nhu Thanh with a total area of about 64,000 ha, of which:
– The area of approximately 12 510 hectares of urban land;
– The area of approximately 6485 hectares of industrial land;
– Tourism area of 500 hectares of land;
V. INVESTMENT INCENTIVES POLICY
1. The rent and water surface rent: The rent and water surface rent bracket stipulated by the People’s Committee of Thanh Hoa province issued and stable for many years.
The maximum rental period of 70 years, expired on possible extension if investor demand.
2. Exemption from land rent and water surface rent
2.1. Exemption from land rent and water surface rent during construction; free from 11 to 15 years after the project goes into operation, depending on the field of project business lines.
2.2. Exemption from land rent and water surface rent during project implementation for projects in the field of special investment incentives stipulated by the Government.
3. Corporate income tax: Income Applicable to Enterprise from implementing new investment projects.
3 .1. Nghi Son EZ: Apply preferential tax rate of 10% within 15 years, 04-year tax exemption and 50% tax for the next 09 years.
3.2. For investment projects to expand the scale of production, capacity expansion, technological innovation (that meet the criteria prescribed by Decree 218/2013 / ND-CP dated 26/12/2013 stipulating information and guidelines for implementation of the Law on corporate income tax) are selected tax incentives under the project is active for the remaining time (if any), exempt or reduce income tax on the increase due to head Expanding brings. Time of tax exemption or reduction for income taxes increased due to expanded investment by tax holidays, tax reduction applies to new investment projects.
4. Export Tax and Import Tax
Depending on the field of project sectors that investor preferences:
– Tax exemption for goods imported to create fixed assets and means of transport in the technological line service investment projects means carrying workers …
– Import tax exemption for a period of 5 years, since the project goes into production to produce raw materials, supplies, components and semi-finished products which Vietnam can not be manufactured or produced substandard quality.
5. Personal Income Tax
Reduce 50% income tax on income subject to income tax, including Vietnam and foreigners working in the EZ.
6. Other policies
6.1. Policy on prices:
Applying a price policy for goods, services and land rent for investors are institutions and individuals, irrespective of domestic and foreign production activities, trading in Nghi Son Economic Zone .
6.2. Switching losses:
Investors after the tax settlement with the tax authorities that loss shall be carried forward losses to subsequent years; This loss amounts to be deducted from the income subject to corporate income tax under the provisions of the Enterprise Income Tax Law. Time forward losses not exceeding 5 years.
6.3. Depreciation:
Investment projects in Nghi Son EZ applicable asset depreciation fast for fixed assets; The maximum depreciation rate is twice the depreciation of each asset depreciation regime.
7. Support policy of Thanh Hoa province for investment projects in industrial zones 3, 4, 5 – Nghi Son EZ:
Provincial budget support 10% of expenses based leveling settlement documents by the management of Nghi Son economic zone evaluation. The level of support must not exceed 500 million / 01 ha.
I. CONDITIONS OF NATURAL AND SOCIAL of Nghi Son EZ:
1. The potential and geographical location
Nghi Son Economic Zone (EZ Nghi Son) has a natural area of 18,611.8 hectares located south of Thanh Hoa province, on the way connected north – south of the country, from the capital Hanoi 200 km south, is a bridge between the northern region with the Central, Northwest and South, with the market in southern Laos and northeastern Thailand. Nghi Son port has the potential to develop into one of the largest sea port in the country with the capacity to receive vessels of up to 50,000 DWT tonnage, loading capacity up to hundreds of million tons / year. To achieve the objective of developing a multidisciplinary EZ attract heavy industries and basic industries such as petrochemical, high-grade steel rolling, thermal power, building materials, production and processing of commodities use and exports … The Government of Vietnam has issued and to apply the highest preferential policies for investors.
2. Climate
Average temperature in 23,40C, air humidity 85-86% annual average rainfall of 1,833 mm average.
3. Topography
The terrain varied, including: Mountains, plains and coastal areas. In plain that accounts for 60% of total area.
4. Population and labor
The total population of Thanh Hoa province about 3.5 million people, including labor force of 2.1 million people. Nghi Son Economic Zone’s population is over 80,000 people, including labor force of about 45,000 people. The labor force is largely Thanh Hoa young workers, have been educated graduate education and upper secondary school, have the ability to acquire science and technology and training of highly skilled labor. Thanh Hoa has the educational system and training is quite complete with enough educational levels and disciplines. At Nghi Son Economic Zone has Vocational School Nghi Son is active and Technology College Licogi are built to meet the training needs of thousands of technical workers.
To meet the demand for human resources for EZ, now Nghi Son Economic Zone Management Board is developing a scheme on training and development of human resources Nghi Son Economic Zone period 2015-2025 approved by the Government.
II. TECHNICAL – SOCIAL INFRASTRUCTURE
1. Transport system
– Road: Located on trunk roads north – south of Vietnam, the highway 1A and national north – south highway in the west of highway 1A pass through Nghi Son EZ. Systematic continuous road traffic between regions in the province and the region. The transport routes linking the urban center to the industrial zones and Nghi Son port, the East-West linking Nghi Son port with the North-South Expressway. Currently, Thanh Hoa province is urgent construction of Nghi Son EZ route from Tho Xuan airport, it is about 60km.
– Railways: Railways country run through Nghi Son Economic Zone over 15km in length, including station upgrades Faculty School is scheduled to expand into Central Station EZ:
+ From Hanoi Railway Station to Khoa Truong Railway Station: 200km.
+ From Ho Chi Minh city Railway Station to Khoa Truong Railway Station: 1.500km.
– Port: Nghi Son Port has built and put into operation the dedicated terminal of Nghi Son Thermal Power, Nghi Son cement manufactory and 03 different berths can accommodate vessels up to 30,000 DWT tonnage , loading capacity of about 5 million tonnes / year. In addition, there are now dozens of synthetic harbors, ports and container terminals and specialized synthetic logistic parks are being investors under construction.
From Nghi Son port location:
Ø to Hai Phong port: 119 nautical mile.
Ø to the port of Ho Chi Minh City: 700 nautical mile.
Ø to the port of Hong Kong: 650 nautical mile.
Ø to the port of Singapore: 1280 nautical mile.
Ø to the port of Tokyo: 1900 nautical mile.
– Aviation: The distance betweenTho Xuan Airpot EZ 4E and Nghi Son is about 60 km. Currently, Vietnam Airlines airlines are exploiting Thanh Hoa routes – Ho Chi Minh City with a frequency of 02 flights / day. Under the approved plan, the airport will be upgraded Tho Xuan expand into international airports to meet the development needs of the Nghi Son EZ and serves the travel needs of people in the province and in parks
2. Electricity system
– Nghi Son EZ is using the National Grid network including North-South 500 kV transmission line and 220KV Thanh Hoa – Nghe An, the existing substation 220/110/22 kV – 250 MVA ensure sufficient power supply to demand and domestic production.
– Nghi Son Economic Zone is the Government planning to develop into a major power center with a total capacity 2.400MW. In particular, the Nghi Son Thermal Power Plant of 600 MW I will be completed and generating in the first quarter 2014. The Nghi Son Thermal Power Plant II, a 1,200 MW by Marubeni Corporation (Japan) and Kepco (Korea Korea) investing in BOT expected to start construction by the end of 2014. Cong Thanh Thermal Power Plant 600 MW has been invested leveling.
3. Water supply
– Raw water: Raw water taken from Yen My lake (87 million m3) and Song Muc Lake (200 million m3) of water pipeline system rough. Pipeline Phase 1 provides a capacity of 30,000 m3/day for Dong Chua lake was built and put into operation. Pipeline Phase 2 capacity of 90,000 m3 / day is being invested from ODA, scheduled for completion in 2015.
– Water: There are two water supply factory are factory in Dong Chua lake have been building in phase I and is supplying with a capacity of 30,000 m3 / day; Phase II to increase capacity to 90,000 m3 / day and factory in the western region 1A, capacity: 20,000 m3 / day under construction, scheduled for completion in 2015.
4. Telecommunication services:
Telecommunication Network Infrastructure – Information Technology Nghi Son Economic Zone has been planned development with advanced services, broadband, high-speed and modern technology; have the ability to meet the demand for telecommunications services – information technology with the highest quality for our customers.
III. SOCIAL INFRASTRUCTURE
The school system, hospitals, commercial services, hotel – tourist … was planning sync. Several projects are under construction, such as eco-tourism zone of Nghi Son island, tourism and service area north of Nghi Son island resort, Complex General Services, Northern District public service Marked mountain, School Licogi collegial technology, worker housing area, commercial banks, insurance services … to meet the needs of housing, education, and entertainment of officials, experts and people in Nghi Son Economic Zone.
IV. PLANNING
1. On 10/10/2007, the Prime Minister has approved construction planning Nghi Son Economic Zone in Decision No. 1364 / QD-TTg. Until now, all the functional areas approved detailed planning 1/2000, including important areas such as:
a. Nghi Son Port: The Ministry of Transport approved the detailed planning of Decision No. 1401 / QD-BGTVT on 26/5/2010. The total area is 2,020 hectares planned, which is 916.8 ha land and water areas is 1103.2 hectares. Nghi Son port is planned including synthetic wharf, container and specialized berths capable of receiving ships 30000-50000 DWT, unloading capacity of 80 million tons / year.
b. The Industrial Park
– A petrochemical complex: Planned area 504 ha; 394 hectares including factory premises under phase 1 (including factory area, terminal and pipeline zones), 110 ha planned to phase capacity expansion to 20 million tons / year.
– Nghi Son Thermal Center: The planned area of 347 ha, including premises Nghi Son 1 thermal power factory, Nghi Son Thermal Power factory 2 and the dedicated port (20 ha);
– Concentrated industrial zones such as industrial zone 1 (241.29 hectares), Industrial Park No. 2 (128.37 ha), Industrial Park No. 3 (247.12 ha), Industrial Zone No. 4 (385.24 ha), Industrial Park No. 5 (462.87 ha), Metallurgical Industrial Park (473.60 ha).
c. The other functional areas
– Urban centers: 1613.28 ha;
– Urban Area 3: 572.2 ha;
– The Public Service Center: 38.70 ha;
– Eco-tourism zone of Nghi Son island: 100 hectares;
– Solid waste treatment area Truong Lam: 40.03 ha;
– North Mountain Park Public Service Marked: 14.58 ha.
There are also other functional areas already approved detailed planning, such as residential areas, resettlement area, Golf …
2. Orientation planned expansion Nghi Son EZ
Implementing the policy of the Prime Minister, Thanh Hoa province is making adjustment schemes, expanding the area of Nghi Son EZ approval process before 2015 include the entire region and 5 communes of Tinh Gia district of Nong Cong, Nhu Thanh with a total area of about 64,000 ha, of which:
– The area of approximately 12 510 hectares of urban land;
– The area of approximately 6485 hectares of industrial land;
– Tourism area of 500 hectares of land;
V. INVESTMENT INCENTIVES POLICY
1. The rent and water surface rent: The rent and water surface rent bracket stipulated by the People’s Committee of Thanh Hoa province issued and stable for many years.
The maximum rental period of 70 years, expired on possible extension if investor demand.
2. Exemption from land rent and water surface rent
2.1. Exemption from land rent and water surface rent during construction; free from 11 to 15 years after the project goes into operation, depending on the field of project business lines.
2.2. Exemption from land rent and water surface rent during project implementation for projects in the field of special investment incentives stipulated by the Government.
3. Corporate income tax: Income Applicable to Enterprise from implementing new investment projects.
3 .1. Nghi Son EZ: Apply preferential tax rate of 10% within 15 years, 04-year tax exemption and 50% tax for the next 09 years.
3.2. For investment projects to expand the scale of production, capacity expansion, technological innovation (that meet the criteria prescribed by Decree 218/2013 / ND-CP dated 26/12/2013 stipulating information and guidelines for implementation of the Law on corporate income tax) are selected tax incentives under the project is active for the remaining time (if any), exempt or reduce income tax on the increase due to head Expanding brings. Time of tax exemption or reduction for income taxes increased due to expanded investment by tax holidays, tax reduction applies to new investment projects.
4. Export Tax and Import Tax
Depending on the field of project sectors that investor preferences:
– Tax exemption for goods imported to create fixed assets and means of transport in the technological line service investment projects means carrying workers …
– Import tax exemption for a period of 5 years, since the project goes into production to produce raw materials, supplies, components and semi-finished products which Vietnam can not be manufactured or produced substandard quality.
5. Personal Income Tax
Reduce 50% income tax on income subject to income tax, including Vietnam and foreigners working in the EZ.
6. Other policies
6.1. Policy on prices:
Applying a price policy for goods, services and land rent for investors are institutions and individuals, irrespective of domestic and foreign production activities, trading in Nghi Son Economic Zone .
6.2. Switching losses:
Investors after the tax settlement with the tax authorities that loss shall be carried forward losses to subsequent years; This loss amounts to be deducted from the income subject to corporate income tax under the provisions of the Enterprise Income Tax Law. Time forward losses not exceeding 5 years.
6.3. Depreciation:
Investment projects in Nghi Son EZ applicable asset depreciation fast for fixed assets; The maximum depreciation rate is twice the depreciation of each asset depreciation regime.
7. Support policy of Thanh Hoa province for investment projects in industrial zones 3, 4, 5 – Nghi Son EZ:
Provincial budget support 10% of expenses based leveling settlement documents by the management of Nghi Son economic zone evaluation. The level of support must not exceed 500 million / 01 ha.
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