Useful information

Investors who implement investment projects in Dak Nong province will enjoy the highest level of investment incentives and supports while fulfilling the financial obligations to the local State at the lowest level according to the regulations of the Central government. Additionally, investors also enjoy the investment incentives and supports under the Decision no. 05/2017/ QD-UBND, dated 6 March 2017 of the provincial People's Committee on the implementation of Resolution No. 55/2016/NQ-HDND dated 22 December 2016 of Dak Nong People's Council on encouraging and supporting investment in Dak Nong province to 2020. The details are as followings:

1. The  incentive and supporting policies of Dak Nong province.

1.1 Applicable Subjects

Those incentive and supporting policies are applicable to domestic and foreign organizations, households and individuals who invest in Dak Nong for the socio-economic development, legal enrichment purposes and are capable of ensuring environmental sustainability (hereinafter referred as investors).

1.2 Areas of investment eligible for incentive and supporting policies

1.2.1. Investment in building technical infrastructure: Including infrastructure of industrial park and zones and  infrastructure of residential zones with areas of 5 hectares or more.

1.2.2. Industrial sector:

a) Investment projects on developing new sources of energy;

b) Investment projects on manufacturing, using bauxite and aluminum as input materials with a total investment of VND20 billion or more, excluding the cost of  for site clearance compensation;

c) Plants of processing agricultural  products with a total investment capital of VND 20 billion or more, excluding the cost of site clearance compenstion;

d) Feed mills with total investment capital of VND20 billion or more, excluding land clearance compensation costs.

1.2.3. Services sector:

a) Investment in construction of trading centers, supermarkets in accordance with  standards specified at Trade ((now Industry and Trade) Minister's Decision No.1371/2004/QD-BTM dated 24 Sept 2004 on issuing regulations on supermarkets, trading centers, centers for organizing fairs and exhibitions;

b) Investment in the construction of tourism destinations and resorts with areas of 10 ha or more and hotels of three-star and higher standard.

1.2.4. High technology sector:

a) High-tech applied projects and projects on manufacturing high-tech products, hi-tech applied agricultural projects shall be granted Investment certificates by the competent authorities of the State (in accordance with the Law on high technology issued in 2008; Decision No. 66/2014/QD-TTg dated 25 Nov 2014 issued by the Prime Minister on approving the list of high technologies and hi-tech product eligible for development promotion; Circular of Minister of Science and technology regulating the determining criteria for high-tech projects, investment projects on production of hi-tech products and evaluation of dossiers requesting for the issuance of certificate of hi-tech applied activities, high-tech enterprises and new business developed from investment projects on hi-tech products,);

b) Investing in projects on the construction of hi-tech park or hi- tech applied agricultural zones' infrastructures which are established under the decision of competent authorities of the State (according to  Law on High technology issued in 2008).

1.2.5. Socialization encouragement sector:

a) Investment projects on the fields of education, vocational training, health, culture, sports, environment, and judical expertise.

b) Investment projects on the construction of coach station.

1.3 Levels of preferential treatment and support by sector

1.3.1 Support for investment in  technical infrastructure

a) For investment projects implemented outside the industrial parks and zones, the State provides support for the construction of infrastructure work such as roads, drainage systems and concentrated wastewater treatment systems.

- Eligible for support of 30% of the budget estimate for works associated with people's activities of daily living; however, the maximum support value must not exceed VND2 billion per project.

- Eligible for support of 20% of the budget estimate for works not associated with the people's activities of daily living; however the support value must not exceed VND1 billion per project.

b) For investment projects on construction and business of infrastructure inside the industrial parks and zones:

- Eligible for support of 100% the budget for  the detailed planning.

- Eligible for support of 30% of the technical infrastructure construction expenses (maximum support value being VND5 billion for projects inside industrial zone and VND2 billion for projects inside industrial park).

c) For projects having ground leased inside industrial zones and parks:

-  Supported with exemption of land rent until the projects are completed and have had products sold in markets.

- Supported with a reduction of 50% of ground rent for the next two years since the products are sold in the markets.

1.3.2 Support for High-tech projects:

a) For investment in technical infrastructure: Supported with 30% of approved budget estimate  with the maximum support of VND3 billion per project.

b) For training and developing human resources:

- Supported with 30% of the value of the contract to hire an expert with a term of 06 months or more. The support, however,  is given to the maximum of 3 contracts  per project with value of VND150 million/contract/year and lasts for the maximum of 2 years per project.

- For vocational training: the support will be provided for sending labors to training centers in the country and abroad with the maximum support value of VND 10 million per labors, and provided to the maximum of 15 labors per project.

c) For technology and equipment: supporteded with 30% of of expense for technology transfering, investment in machinery, equipment, trial production; however, the support value must not exceed VND2 billion per project.

1.3.3 Credit support

For projects eligible for loans at the Dak Nong Investment and Development Fund, but the Fund's capital can not meet the loans of the project, then the investors can still  borrow capital from other commercial credit institutions or banks and will be supported with the interest rate difference (between provincial Development Investment Fund with commercial credit institutions or banks). However,  the duration of the support shall not exceed 3 years since the first capital disbursement and the supported value must not exceed VND1 billion per project.

1.3.4. Support for trade promotion:

- To attend fairs in the Central Highlands, each enterprise is supported with up to VND10 million/time/ year.

- To participate in the national fairs or the international fairs (held in the country), each enterprise is supported with  up to VN 20 million/time/year.

- To participate in the international fairs (held abroad), each enterprise is supported with up to VND50 million/time/year for the fair held in the Southeast Asian countries and China; up to VND 100 million/time/enterprise/year for the fair held in other countries;

- To build up e-commerce system, each enterprise is supported with the maximum of VND100 million per project.

- To build up trademarks, geographical indications, brand and registration for goods' quality, services, each enterprise is supported with the maximum value of 100 million per product and for only once.

1.3.5 Support for socialization projects:

- For investment projects implemented in the wards of the towns or  the towns of the province, investors are supported with  50%  of the cost of site clearance compenstation, or a 50% reduction of land rent if the project's land leased from the State has had site clearance completed.

- For investment projects implemented  in the other locations, investors are supported with 100% of expense of site clearance compensation, or 100% free of land rent if the project's land leased from the State has had site clearance completed.

1.3.6 Support for human resource training:

-  Enterprises employing 20 labors or more are supported with the fee for sending labors to courses for work training.  The support is offered once and has the value of VND1 million per labor for under-3-month courses,  or VND 1.5 million for above-3-month courses.

1.3.7 Investment support for households, individuals:

- Households and individuals who invest in safe agricultural production using net-houses and hothouses with area of 1 hectare or more will receive the State's support at the rate of VND 20,000/m2 of net house or hothouse. The support is offered once and must not exceed VND20 million per household or individual.

- Households and individuals who invest in safe agricultural production over the area of one hectare or more and use economical or driping irrigation techniques, shall receive a support equalling the factual investment expenses. The support, however,  is offered only once and must not exceed VND10 million for each household or individual.

2. Central Incentive policies on investment

INVESTMENT INCENTIVES

Investment catalogue/location

 

Land, water surface rent

(According to Degree No 46/2014/NĐ-CP dated May 15 2014 of the Government on collection of  land use fees, water surface fees and Degree No 135/2016/ND-CP dated September 9 2016  on amendment and supplement of articles of regulations on collection of land use fees and water surface fees)

 

Corporate Income Tax

(According to Circular 78/2014/TT-BTC of Ministry of Finance on guidance on implementation of Degree No 218/2013/NĐ-CP dated Dec 26 2013 of the Government on detailed guidance on implementation of corporate income tax)


Special investment incentives in areas with difficult socio-economic conditions

 


Land rent exemption (Point a, Clause 1, Point d, Clause 3, Article 19)

 


A preferential tax rate of 10% in 15 years -  meaning four years of  tax exemption and a  tax reduction of 50% in the 9 following year (Point a, Clause 1, Article 19 and Point a, Clause 1, Article 20)


Areas with partically difficul socio-economic conditions

 


Exemption for 11 years (Point c, Clause  3, Article 19)

 


A preferential tax rate of 10% in 15 years – meaning 4 year of tax exemption and a  reduction of 50% of corporate income tax in the 9 following years (Point a, Clause 1, Article 19 and Point a, Clause 1, Article 20


Investment incentives in areas with particularly difficul socio-economic conditions

 


Exemption for 15 years (Point d, Clause  3, Article 19)

 

* Procedures for confirmation of investment incentives

Order, procedures and dossiers for confirmation of being eligible for investment preferential policies will be implemented in accordance with Guideline No 2984/HD-UBND dated 9 June 2017 of the Provincial People's Committee on guiding the implementation of regulations of  encouraging and supporting investment in Dak Nong by 2020.

For further information on those documents, organizations, individuals, business communities, investors may access 

Pursuant to Resolution No 55/2016/NQ-HDND dated 22 December 2016 of the  People's Council of Dak Nong Province on investment encouragement and support into Dak Nong province by 2020; pursuant to Decision No 05/2017/QD-UBND dated 06/3/2017 of the Provincial People's Committee on implementation of Resolution No 55/2016/NQ-HDND dated 22/12/2016 of Provincial People's Council on investment encouragement and support into Dak Nong by 2020; 

People's Committee of Dak Nong Province provides guidance on the implementation of investment encouragement and support policies into Dak Nong by 2020 as follows:

1. General principles

(1) This document concretizes the contents stipulated at Resolution No 55/2016/NQ-HDND dated 2 December 2016 of the Provincial People's Council on investment encouragement and support into Dak Nong by 2020.

(2) Giving one-time support for investors after completing their projects or initial period of operation, support decision will be made in accordance with regulations of this document.

(3) Giving support (free of charge) for investors in the process of implementing investment related administrative procedures from construction phase to completion of projects, timely removing difficulties and obstacles for investors (carried out by Investment Promotion Center under Department of Planning and Investment).

(4) Solving investment related administrative procedures at soonest as stipulated by the State; promptly removing difficulties and obstacles for investors in the process of project implementation.

(5) Projects under investment support consideration must ensure sustainable environmental protection and the schedule as committed.

2. Technical Infrastructure

(1) Objects and conditions: as stipulated in Article 3, Resolution No 55/2016/NQ-HDND dated 22/12/2016 of Provincial People's Council on investment encouragement and support into Dak Nong by 2020.

(2) Support level: as stipulated in Article 4, Resolution No 55/2016/NQ-HDND dated 22/12/2016 of Provincial People's Council on investment encouragement and support into Dak Nong by 2020.

(3) Dossiers, procedures:

a) Dossiers: made into 4 copies (including 1 original copy) and sent to Department of Planning and Investment including:

- Written document eligible for investment support

- Report explaining investment projects and project approval decision

- Notified copy of construction contract (if any)

- Notified copy of land lease contract (for projects in industrial parks and industrial clusters)

- Notified copy of financial finalization report on project completion and approval decision on financial finalization report

- Notified copy of audit report (if any)

- Other related documents (if any).

b) Order & procedures:

- In the period of 3 working days since receiving dossiers, it is a responsibility of Department of Planning and Investment to evaluate the legitimacy of the dossier

- To incomplete and invalid dossiers, in a period of 3 working days from the date of receiving dossiers, Department of Planning and Investment needs to send written requests to investors for completing dossiers and sent back to Department of Planning and Investment.

- In a period of 07 working days from the date of receiving dossiers, Department of Planning and Investment is responsible for coordinating with related units (Departments of Construction, Industry and Trade, Finance) to appraise the project.

- In a period of 10 working days from the date of receiving dossiers, Department of Planning and Investment needs to send appraisal report to People's Committee of Dak Nong Province for consideration.

- In a period of 5 working days from the date of receiving appraisal report, People's Committee of Dak Nong province will issue investment support decision.

3. Investment support for hi-tech projects

(1) Objects and conditions: as stipulated in Clause 4, Article 3, Resolution No 55/2016/NQ-HDND dated 22/12/2016 of Provincial People's Council on investment encouragement and support into Dak Nong by 2020.

(2) Support level: as stipulated in Article 5, Resolution No 55/2016/NQ-HDND dated 22/12/2016 of Provincial People's Council on investment encouragement and support into Dak Nong by 2020.

(3) Dossiers, procedures:

a) Dossiers: made into 4 copies (including 1 original copy) and sent to Department of Planning and Investment including:

- Written document eligible for investment support

- Report explaining investment projects and project approval decision

- Notified copy of the certificate of hi-tech project or decision on the establishment of hi-tech park, hi-tech agricultural park of competent agencies (for projects of construction of infrastructure, hi-tech park, hi-tech agricultural park).

- Notified copy of construction contract (if any)

-  Notified copy of land lease contract (for projects in industrial parks and industrial clusters)

- Notified copy of financial finalization report on project completion and approval decision on financial finalization report

- Notified copy of audit report (if any)

- Other related documents (if any).

b) Order & procedures:

- In the period of 3 working days since receiving dossiers, it is a responsibility of Department of Planning and Investment to evaluate the legitimacy of the dossier

- To incomplete and invalid dossiers, in a period of 3 working days from the date of receiving dossiers, Department of Planning and Investment needs to send written requests to investors for completing dossiers and sent back to Department of Planning and Investment.

- In a period of 07 working days since date of receiving dossiers, Department of Planning and Investment is responsible for coordinating with related units (Departments of Construction, Industry and Trade, Finance, Agricultural and Rural Development, Labor - Invalid and Social Affairs) to appraise the project.

- In a period of 10 working days since date of receiving dossiers, Department of Planning and Investment needs to send appraisal report to People's Committee of Dak Nong Province for consideration.

- In a period of 5 working days since date of receiving appraisal report, People's Committee of Dak Nong province will issue investment support decision.

4. Credit support

(1) Objects and conditions: objects under fields of investment encouragement and support policies as stipulated at Article 3, Resolution No 55/2016/NQ-HĐND dated 22/12/2016 of Provincial People's Council on investment encouragement and support into Dak Nong by 2020.

(2) Support level: as stipulated at Article 6, Resolution No 55/2016/NQ-HDND dated 22/12/2016 of Provincial People's Council on investment encouragement and support into Dak Nong by 2020.

(3) Dossiers, procedures:

a) Dossiers:

- Written document eligible for investment support

- Report explaining investment projects and project approval decision

- Notified copy of loan agreement & forward rate agreement

- Notified copy of audit report (if any)

- Other related documents (if any).

b) Order & procedures:

- In the period of 3 working days since receiving dossiers, it is a responsibility of Department of Planning and Investment to evaluate the legitimacy of the dossier

- To incomplete and invalid dossiers, in a period of 3 working days since the date of receiving dossiers, Department of Planning and Investment needs to send written requests to investors for completing dossiers and sent back to Department of Planning and Investment.

- In a period of 04 working days since date of receiving dossiers, Department of Planning and Investment is responsible for collecting appraisal opinion of Investment and Development Fund on lending conditions and lending interest rate difference

- In a period of 10 working days since date of receiving dossiers, Department of Planning and Investment needs to send appraisal report to People's Committee of Dak Nong Province for consideration.

- In a period of 5 working days since date of receiving appraisal report, People's Committee of Dak Nong province will issue investment support decision.

5. Trade Promotion Support

(1) Objects and conditions: as stipulated at Article 3, Resolution No 55/2016/NQ-HDND dated 22/12/2016 of Provincial People's Council on investment encouragement and support into Dak Nong by 2020.

(2) Support level: as stipulated at Article 7, Resolution No 55/2016/NQ-HDND dated 22/12/2016 of Provincial People's Council on investment encouragement and support into Dak Nong by 2020.

(3) Dossiers, procedures:

a) Dossiers:

- Written document eligible for investment support

- Notified copy of contract for exhibition participation, related invoices and documents

- Notified copy of certificate from National Office of Intellectual Property or legitimate certificate of trademark registration & geological indication

- Notified copy of domain registration certificate, server leasing contract and budgeted statement of designing and constructing e-commerce information system

- Other related documents (if any).

b) Order & procedures:

- In the period of 3 working days since receiving dossiers, it is a responsibility of Department of Planning and Investment to evaluate the legitimacy of the dossier

- To incomplete and invalid dossiers, in a period of 3 working days since the date of receiving dossiers, Department of Planning and Investment needs to send written requests to investors for completing dossiers and sent back to Department of Planning and Investment.

- In a period of 05 working days since date of receiving dossiers, Department of Planning and Investment is responsible for coordinating with related units (Departments of Industry and Trade, Science and Technology, Finance) to appraise the project.

- In a period of 10 working days since date of receiving dossiers, Department of Planning and Investment needs to send appraisal report to People's Committee of Dak Nong Province for consideration.

- In a period of 5 working days since date of receiving appraisal report, People's Committee of Dak Nong province will issue investment support decision.

6. Investment support for socialization projects

(1) Objects and conditions: as stipulated at Clause 5, Article 3, Resolution No 55/2016/NQ-HDND dated 22/12/2016 of Provincial People's Council on investment encouragement and support into Dak Nong by 2020; conditions for receiving investment support as stipulated at Decision NO 1466/QD-TTg dated October 10 2008 and Decision NO 693/QD-TTg dated May 06 2013 of the Prime Minister

(2) Support level: in case of paying in advance the cost of land clearance and compensation from investors approved by competent agencies, State's budget will refund investors specified as regulations of Article 8, Resolution No Resolution No 55/2016/NQ-HDND dated 22/12/2016 of Provincial People's Council on investment encouragement and support into Dak Nong by 2020.

 (3) Dossiers, procedures:

a) Dossiers: made into 4 copies (including 1 original copy) and sent to Department of Planning and Investment including:

- Written document eligible for investment support

- Report explaining investment projects and project approval decision

- Notified copy of method of land clearance & compensation approved by competent authorities

- Certified documents of fully paying cost of land clearance and compensation approved by competent authorities

- Notified copy of land lease contract (for projects in industrial parks and industrial clusters)

- Notified copy of financial finalization report on project completion and approval decision on financial finalization report

- Notified copy of audit report (if any)

- Other related documents (if any).

b) Order & procedures:

- In the period of 3 working days since receiving dossiers, it is a responsibility of Department of Planning and Investment to evaluate the legitimacy of the dossier

- To incomplete and invalid dossiers, in a period of 3 working days since the date of receiving dossiers, Department of Planning and Investment needs to send written requests to investors for completing dossiers and sent back to Department of Planning and Investment.

- In a period of 05 working days since date of receiving dossiers, Department of Planning and Investment is responsible for coordinating with related units (Departments of Construction, Industry and Trade, Finance) to appraise the project.

- In a period of 5 working days since date of receiving appraisal report, People's Committee of Dak Nong province will issue investment support decision.

7. Training & human resource support

(1) Objects and conditions: as stipulated at Article 3, Resolution No 55/2016/NQ-HDND dated 22/12/2016 of Provincial People's Council on investment encouragement and support into Dak Nong by 2020.

(2) Support level: as stipulated at Article 9, Resolution No 55/2016/NQ-HDND dated 22/12/2016 of Provincial People's Council on investment encouragement and support into Dak Nong by 2020.

(3) Dossiers, procedures:

a) Dossiers: made into 4 copies (including 1 original copy) and sent to Department of Planning and Investment including:

- Written document eligible for investment support

- Report explaining investment projects and project approval decision

- Notified copy of labor contract, training contract (if any)

- Notified copy of Vocational Education Certificate of laborers

- Other related documents (if any).

b) Order & procedures:

- In the period of 3 working days since receiving dossiers, it is a responsibility of Department of Planning and Investment to evaluate the legitimacy of the dossier

- To incomplete and invalid dossiers, in a period of 3 working days since the date of receiving dossiers, Department of Planning and Investment needs to send written requests to investors for completing dossiers and sent back to Department of Planning and Investment.

- In a period of 05 working days since date of receiving dossiers, Department of Planning and Investment is responsible for coordinating with related units (Departments of Labor, Invalid & Social Affairs, Finance) to appraise the project.

- in a period of 10 working days since date of receiving dossiers, Department of Planning and Investment needs to send appraisal report to People's Committee of Dak Nong Province for consideration.

- In a period of 5 working days since date of receiving appraisal report, People's Committee of Dak Nong province will issue investment support decision.

8. Investment support for household businesses and individuals

(1) Objects and conditions: as stipulated at Article 10, Resolution No 55/2016/NQ-HDND dated 22/12/2016 of Provincial People's Council on investment encouragement and support into Dak Nong by 2020;

 (2) People's Committees of Districts, Townships provide specific guidance on implementation of dossiers, procedures and support amount for household businesses and individuals (from budget of districts and townships)

 (3) Dak Nong Province will support a part of its budget to districts and townships in the next year's budget estimate.

9. Payment and cost estimate for investment support

(1) In a period of 15 working days since issuing investment support decision by People's Committee of Dak Nong Province, Department of Planning and Investment coordinate with Department of Finance to advise Provincial People's Committee to give advance of Province's budget for investment support.

 (2) Department of Planning and Investment generates list of projects under investment support policies (approved by Provincial People's Committee before October 31 2016) and other support services stipulated at Clause 8. This document (reported by People's Committees of districts, townships before October 31 2016) will be put into annually financial plan for investment & development

 (3) Final statement of investment support cost will be carried out in accordance with regulations of State's budget and related documents.

10. Implementation

(1) People's Committees of districts, townships, related departments and agencies, are responsible for implementation of above tasks

(2) In the implementation process, if any problem arises, related units are required to report to Department of Planning and Investment for specific instructions or submit to Provincial People's Committee for consideration.

Source: Investment Promotion Center of Daknong Province