|
A. Introduction:
EPZs & IPs in Hochiminh city :
At present,
Hochiminh city has 02 EPZs,08 IZs being in operation. The EPZs &
IZs" Administration Authority is the authorized body in charge
of activities of all the EPZs & Izs and is entrusted by the
Ministry of Planning and Investment to grant licenses for
projects going to be implemented in the EPZs & IZs. The HCMC
EPZs & IZs? Administration is authorized to issue investment
licenses for projects with investment capital up to USD 40
million
Fields of
investment at the IZs :
Garment
Machinery
Electricity,
Electronics, Rubber, Plastics
Wood
processing
Paper
Packaging
Leather,
Footwear
Chemicals
Metals
Foodstuff,
Beverage.
1. The EPZs & IZs
accepting pollution causing projects:
- Le Minh Xuan
industrial zone and Hiep Phuoc industrial zone.
- At Tan Tao
industrial zone, the acceptance depends on degree of
pollution.
2. Labour:
- The EPZs
attract 47 000 employees
- The IZs
attract 60 000 employees
3. Investment
supporting services ( in EPZs & IZs in HCMC ):
Banking
Accounting
Post &
telecommunications
Supplying
services: Fuel, Office stationery, Food...
Sanitary
services
Insurance
services
Project
surveying
Law
consulting
Transportation
Export-Import
B. The EPZs & IZs
in HCMC
1. The EPZ Tan
Thuan:
Total Area:
300 hectares
Area for
rent : 195 hectares
Occupied
Areas : 135.15 hectares
Land rental:
USD 108 per m2 for 41 years
Ready-built
workshops: USD 170/m2
Electricity
rate: 0.075 US$/kWh, Water rate: 0.22 US$/m3
The
conditions:
+ The minimum leased area: 2500 ha
+ Deposit: 5% of land rental
2. The Linh Trung
EPZ:
The first
site area: 62 hectares
Area for
rent: 45,39 hectares.
Occupied
Areas : 43.32 hectares takes 95.42% of the total .
The second
site area ( expanded area) : 61.7 hectares
Land rental: : 50 USD/m2 /for 24 years at the EPZ
45 USD/m2/for 25 years at the IZ
Rental
conditions:
Deposit: 5% of the land rental.
Electricity
rate: 0.075 US$/kWh, Water rate: 0.38 US$/m3 at the EPZ.
Electricity rate: 0.085 US$/kWh, Water rate: 0.40 US$/m3 at
the IZ.
3. The IZ Binh
Chieu:
Total
Area:27 hectares
Rental Areas
:21 hectares
Occupied
Areas :20 hectares
Land
rental:30-40 USD/m2/for 47 years
Electricity
rate: 0.085 US$/kWh
Rental
conditions: Land rental depends on land position, Land area
and payment methods.
Deposit: 5% of the land rental
4. The IZ Hiep
Phuoc:
Total Area:
332 hectares
Rental Area
: 198 hectares
Occupied
Areas :18 hectares
Land rental
: 35-50 USD/m2/for 48 years
30-40 USD/m2/for 48 years
Conditions:
Deposit 5% of land rental, in case with joint ventures
Deposit depends on negotiations, in case with IPC company
Electricity
rate: 0.75-0.90 US$/kWh, Water rate: 0.35 US$/m3
5. The IZ Tan
Tao.
Total
Area:181 hectares
Rental Area
:90 hectares
Occupied
areas:52 hectares.
Land
rental:45-64 USD/m2/for 48 years. The rental price of built
factory: 1.7 US$/m2/month.
Conditions::
- land rental rates depend on land position ,land area and
payment methods.
- The minimum leased area: 3000m2.
- Deposit: 10%
Electricity
rate: 0.070 US$/kWh, Water rate: 0.35 US$/m3.
6. The IZ Tan
Binh:
Total
area:155 hectares.
Rental area
:95 hectares.
Occupied
Areas :13 hectares.
Land
rental:45-55 USD/m2/for 48 years.
Conditions:
Land rental is fully paid (01)and depends on rent duration
and payment.
Deposit:5% The minimum leased area:2000m2.
Rental duration: not less than 20 years.
Electricity
rate: 0.085 US$/kWh, Water rate: 0.35 US$/m3
7. The IZ Vinh
Loc:
Total Area:
207 hectares
Rental Area
: 119 hectares
Occupied
Areas : 30 hectares
Land rental:
30-40 USD/m2 /for 48 years
Ready-built workshop: 2USD/m2/ per month
Conditions:
Land rental is fully paid (01) and depends on rent duration
and payment methods.
Deposit: 5%
The minimum leased area: 5000m2
Electricity
rate: 0.085 US$/kWh, Water rate: 0.18 US$/m3
8. The IZ Tan
Thoi Hiep:
Total Area:
215 hectares
Rental Area
: 135 hectares
Occupied
Areas : 9 hectares
Land rental
rates: 26-30 USD/m2 / for 48 years
Ready-built workshop: 1.7 USD/m2/ per month
Conditions:
Land rental is fully paid(01) and depends on rent duration
and payment methods.
Deposit 5-10%
The minimum leased area: 5000m2
Electricity
rate: 0.085 US$/kWh, Water rate: 0.35 US$/m3
9. The IZ Tay Bac
Cu Chi:
Total Area:
220 hectares
Rental Area
: 140 hectares
Occupied
Area : 11 hectares
Land rental
rates: 28 - 45 USD/m2 /for 45 years
Conditions:
Land rental depends on land position, land area and payment
methods.
Deposit: 5%
Electricity
rate: 0.085 US$/kWh, Water rate: 0.30 US$/m3
10. The IZ Le
Minh Xuan:
Total Area:
100 hectares
Rental area:
66 hectares
Occupied
Areas : 10 hectares
Land rental:
36 USD/for 48 years
Ready-built workshop: 1.5 USD/m2/ per month
Conditions:
Land rental depends on rent duration and payment methods.
Fully paid (01).
Deposit : 5%
Electricity
rate: 0.085 US$/kWh, Water rate: 0.28 US$/m3
LINH TRUNG EPZ
- HCM CITY, VIETNAM
LEASE OF STANDARD
FACTORY BUILDING
|
BASIC
RENTAL |
1st TO
5st YEAR |
6st TO
10st YEAR |
11st TO
15st YEAR |
AFTER
15st YEAR |
|
BUILDING
AREA
( price per m2/month ) |
1.6 USD
per m2/ month |
1.5 USD
per m2/ month |
1.4 USD
per m2/ month |
1.3USD
per m2/ month |
|
OPEN
SPACE
( price per m2/ year ) |
2.5 USD
per m2/ year |
2.0 USD
per m2/ year |
1.6 USD
per m2/ year |
1.2 USD
per m2/ year |
DEPOSIT: equal to
the first year rental, to be paid upon signing the Agreement to
Lease Factory Building.
NOTE: No VAT for
EPZ enterprises. For IP enterprises, rental & utility fees will
be added with VAT (which is refundable as to the regulations).
LAND RENTAL
Applied from
November 3, 2003.
INSTALLMENT
PAYMENT: (Lease term up to Dec 26, 2052):
|
BASIC
RENTAL |
PAYMENT
METHOD: 3 OPTIONS |
|
USD
25/m2 |
-
First year: 50% of the total land rental. Each
of the next 5 years: 10% of the total land
rental, together with 7% interest on the
reducing balance.
-
First year: 30% of the total land rental. Each
of the next 7 years: 10% of the total land
rental, together with 7% interest on the
reducing balance.
-
First year: 100% of the total land rental
|
DEPOSIT: equal to
15% of the total land rental, to be paid upon signing the
Agreement to Lease Land.
YEARLY PAYMENT:
|
BASIC
RENTAL |
1ST TO
10TH YEAR |
11TH TO
20TH YEAR |
21ST TO
30TH YEAR |
AFTER
3OTH YEAR |
|
2.5 USD/
m2/ year |
2.0 USD/
m2/ year |
1.5 USD/
m2/ year |
1.0 USD/
m2/ year |
DEPOSIT : equal
to the first year rental, to be paid upon signing Agreement to
Lease Land.
UTILITIES RATE
(Exclusive of VAT)
UTILITIES RATE
|
Electricity |
Normal
time (4:00?18:00) |
Low time
(22:00-4:00) |
Peak
time (18:00-22:00) |
|
Low
voltage (380 V) |
7.2
cents/KWH |
3.9
cents/KWH |
11.2
cents/KWH |
|
Medium
voltage (15KV) |
6.7
cents/KWH |
3.6
cents/KWH |
10.5
cents/KWH |
|
Water
|
22 cents
/ m3 |
|
|
|
Fee for
use of public utilities |
3 cents
/ m2 / month (applied since completion of factory
building) |
|
Wastewater treatment fee |
20 cents
/m3 (accounted as 80% of consumed clean water). |
NOTE:
- RENTAL shall
be increased by 10% for warehousing enterprises; and 20% for
commercial service enterprises .
- For
manufacturing and warehousing enterprises the maximum lease
term is 50 YEARS; for service enterprises 25 YEARS.
- No VAT for
EPZ enterprises. For IP enterprises, rental & utility fees
will be added with VAT (which is refundable as to the
regulations).
- Land rental
may be adjusted without prior notice.
FINANCIAL
INCENTIVES:
|
TYPES OF
TAX |
EPZ
ENTERPRISES |
IP
ENTERPRISES |
|
EXPORT
TAX |
FREE |
|
IMPORT
TAX |
FREE
-
In
respect of goods imported to form fixed assets
of enterprises;
-
Raw
materials, goods imported for production of
goods for exports and service business.
|
FREE
-
In
respect of goods imported to form fixed assets
of enterprises;
-
In
respect of raw materials for production for five
(5) years from the time when production
commences;
-
In
respect of raw materials, spare parts, parts and
materials imported for production of goods for
export.
|
|
CORPORATE INCOME TAX
TAX EXEMPTION
TAX REDUCTION
|
TAX
RATE: 10%
-
4
years exemption since operation starts to earn
profit
-
4
subsequent years: 5% on net profit
-
Years after: 10% on net profit
|
|
VALUE
ADDED TAX |
FREE
-
In
respect of equipment, machinery and specialized
means of transportation which form part of
technological line not yet domestically produced
and which are imported to form fixed assets of
enterprises;
-
In
respect of raw materials imported for production
of products to be supplied to other enterprises
directly producing goods for export;
-
In
respect of goods imported for service business
(Only applicable to EPZ Enterprises)
|
|
TAX ON
PROFIT REMITTANCE TO FOREIGN COUNTRY |
3 % on
the remitted profit amount |
Source:
Department of Ministry of Investment and Planning, HCM city,
Vietnam (HCMC website) |
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