1. Project Name: LOC TIEN INDUSTRIAL COMPLEX
2. Project target
+ Contribution to the transfer of economic structure to fasten the development of industry, small scale industry and service based on developing agriculture and forestry.
+ Calling for foreign and domestic investors to invest in industrial complex.
3. Investment Form
4. Investment scale
Total estimated investment capital:
+ Project of building Industrial Complex infrastructure: VND 57 billion.
+ Project of industrial production: Depend on type and scale of each project.
Land area: 47.17ha
+ Project of building Industrial Complex infrastructure: Internal road, drainage system, power supply system.
+ Projects of industrial production: Depend on type and scale of each project.
Labor Demand: Depend on the need of each project. Employee will be provided by neighboring area and locality.
5. Project Duration (year), Implementation plan of Project
+ Project of building Loc Tien Industrial Complex infrastructure: 10 yeas
Implementation plan: 02 phases
* 2009 - 2010: Premises clearance, Building some essential infrastructure.
* 2011 -2015: Finishing essential infrastructure construction.
+ Project of industrial production: 50 years
The Implementation plan of project depends on investors.
6. Foundation to build project
Advantages for a successful project.
- Located on National road No 20, about 110 km far away from Da Lat, 190 km from HCM city and 100 km from Phan Thiet city.
- Advantage place for long-term industrial plants (tea, coffee, mulberry) and Agriculture products processing industry
Foundation of Law and Legal document
- Decision No 1532/QD-UBND dated June, 6th, 2008 on adjusting plan to fasten and develop Socio-economy of Bao Loc town to 2010
- Development Plan of Lam Dong Industry Sector from 2002-2010
- Document No 2015 dated May 27th, 2004 of Lam Dong's People Committee on approving the policy of master plan of Loc Tien Industrial Complex and Loc Phat Industrial Complex.
7. Project site
- Address: Loc Tien Ward, Bao Loc city, Lam Dong Province, about 110 km far away from Da Lat, 190 km from HCM city and 100 km from Phan Thiet city
- Enclosed document: Project Map
8. Infrastructure at site - Including main articles as follow:
Kinds of land: Industrial land
- Factory land: 17.55 ha
- Land for managed center and trade service: 1.23 ha
- Technical land: 0.32 ha
- Traffic land: 9.45 ha
- Green land: 3.22 ha
- Land for resettlement and residence: 15.4 ha
Current Situation: Most of land is used for coffee, tea, fruit plantation; only a small part of land is free.
There was a unit invested into the industrial complex in garment industry export, with total investment capital is 72 billion dong, occupied 0.96 ha. Fulfill rate occupied 4.93% of total area of the entire Loc Tien industrial complex.
Construction quality: construction site is the fourth level infrastructure.
Particular: Loc Tien industrial complex connects to National road No 20 through Phan Dinh Phung Street. There are some roads rounding for exchanging goods and products.
Transportation cost per km: VND 3,500 /1 ton/km.
Internet, Phone lines are available and convenient.
Power source: The power supply of Loc Tien industrial complex is 2kv electric line from the 110 kV transformers in Loc Son.
Available water source: There are no water supply systems. So investors can use 2 available water sources as below:
Water surface source: limited but the underground water source is really rich and can use the water from Bao Loc city in the future.
Underground water source: wells.
Waste treatment system/Waste water treatment system
- There has not been water treatment system yet. Factories do water treatment by themselves to Point - B before letting out to main ditch.
- As the approved plan of Bao Loc city, there is an area for solid waste treatment located 3 km far away from industrial complex.
9. Market for product and services
- Project of building Loc Tien Industrial Complex infrastructure: Easy to attract investors form Viet Nam and foreigner country because of the potentialities of Bao Loc. Beside, Lam Dong has passed a lot of preference in tax, land lease...
- Projects of industrial production: The cost price is lower than other place because of cheaper expense of input material & work force. That is an advantage competition.
10. Available input for project in domestic and foreign markets
Farm product: Large area of coffee plantation, tea plantation, mulberry plantation and forest will be the input source for farm product processing factories and develop small industry.
Mineral resources: Granite, Bentonite, Kaolin which can be exploited to develop mining industry and material industry.
11. Ability to supply work force for project
- The local work force and neighboring area are enough to supply to projects (Population of Bao Loc city is over 151.000 people). When the projects are in operation, it is able to attract the work force from neighboring area.
- There are vocational schools in Bao Loc to train and supply skill labor to the projects.
12 Preference Investments
The investor who rent the land from the State and have the investment projects in preferential field in conformity with list in appendix II promulgated in conjunction with Decree No 108 will be exempted and reduced land and water surface rent according to the Law on land and Decree No 142/2005/ND-CP dated November 14th, 2005.
- Project which invests in Bao Loc city is exempted from land and water surface rent in 7 years counting from the day the building is finished and is being for use.
- Project which invests in other district in Lam Dong (except Da Lat and Bao Loc city) is exempted from land and water surface rent in 7 years counting from the day the building is finished and is being for use.
b. Business Income Tax
Business Income Tax rate: 25%.
Project which invest in field and location in preferential investment according to the list in appendix promulgated in conjunction with Decree No 124/2008/ND-CP dated December 11th, 2008 will be got exempted & reduced Business Income Tax according to Law on Business Income Tax, The details are as followed:
+ Tax rate incentives: (Stipulated in Article 15-Decree No 124)
- The incentive tax rate of 10% for 15 years is applicable to:
* New enterprises established under investment projects in geographical areas with extreme socio-economic difficulties (Districts in Lam Dong Province).
* New enterprises established under investment projects in the domains of:
- High technology as prescribed by law; scientific research and technological development;
- Development of water plants, power plants, water supply and drainage systems; bridges, roads, railways; airports, seaports, river ports; airfields, stations and other infrastructure works of special importance as decided by the Prime Minister;
- Manufacture of software products.
- The tax rate of 10% is applicable to incomes of enterprises operating in education-training, vocational training, healthcare, cultural, sports and environmental domains (below collectively referred to as socialized domains) throughout their operation duration.
The Prime Minister shall promulgate a list of socialized domains mentioned in this Clause.
- The incentive tax rate of 20% for 10 years is applicable to new enterprises established under investment projects in geographical areas with socio- economic difficulties (Bao Loc city - Lam Dong Province)
- The incentive tax rate of 20% is applicable to agricultural service cooperatives and people's credit funds throughout their operation duration.
After the expiration of the duration for application of the tax rate of 10% specified at Point a, Clause 1 of this Article, agricultural service cooperatives and peoples credit funds shall switch to enjoy the tax rate of 20%.
The duration for application of incentive tax rates specified in this Article is counted consecutively from the first year an enterprise has turnover from activities eligible for tax incentives.
+ Tax exemption and reduction: (Stipulated in Article 16 - Decree No 124)
* Tax exemption for 4 years and 50% reduction of payable tax amounts for 9 subsequent years are applicable to:
- New enterprises established under investment projects specified in Clause 1, Article 15 of this Decree;
- New enterprises operating in socialized domains in geographical areas in Bao Loc city and Districts of Lam Dong Province.
* Tax exemption for 4 years and 50% reduction of payable tax amounts for 5 subsequent years are applicable to new enterprises operating in socialized domains in Da Lat city - Lam Dong Province.
* Tax exemption for 4 years and 50% reduction of payable tax amounts for 4 subsequent years are applicable to new enterprises established under investment projects in Bao Loc city - Lam Dong Province.
c. Import-Export Tax:
Project which invest in field and location in preferential investment according to the list in appendix I, II promulgated in conjunction with Decree No 108 will be got incentive import-export tax according to Law on Import-Export Tax, The details are as followed:
- Project which invests in field and location in preferential investment according to the list in appendix promulgated in conjunction with Decree No 108 will be exempted import-export tax with import goods to create fix assets in the processing of setting up enterprise.
- Seed, livestock are allowed to import to implement the investment project.
d. Preferential policies: Investors who carry out investment projects in Lam Dong organize vocational training for localities will be helped with funds to train workers according to Decision No 64/2009/QĐ-UBND dated 07/7/2009 signed by Lam Dong Peoples Committee. The details are as follow:
*. Training in the enterprises:
- Support levels: VND 200,000 per month;
- The maximum time support: according to the training program and the course does not exceed 06 months.
*. Sending workers to retrain in other enterprises or follow the training contract with the vocational training bodies:
- Support levels: VND 300,000/person/month;
- Time support:
- Training at primary level in vocational schools, training centers or training in other enterprises: The time specified in the certificates or certificates for completion the courses, the training does not exceed six (06) months;
- Training of vocational secondary level, twenty (20) months;
- Training college career: thirty (30) months.
*. Additional support for the enterprises is VND 100,000/person/ month for the following training subjects:
- Ethnic minorities;
- Poverty households (poverty granted);
- Soldiers, police demobilization;
- The disabled;
- Workers in communes, villages and hamlets in the region III in the list of areas under Program 135 Phase 2 and the communes, rural poverty is over 30% last year.
13. Social effects of Project
Different project give different social-economic effect. When investing in any project, investors will not only get the profit to themselves but also contribute benefit to society such as:
+ Contributing to the calling for investment project, giving an impetus to the development of local socio-economy.
+ Limiting environment pollution, Contributing to develop the ecology of the forest in the stable and permanent way.
+ Creating new jobs, reducing jobless, raising income for a part of community especially the ethnic groups.
+ Raising Local State Budget.
14. Viet Nam Partner, Investor of Project
Lam Dong Trade and Industry Department
Add: 02 - 04 Nguyen Viet Xuan, Da Lat
15. Procedures for the issue of investment certification
- The Peoples Committee of District arranges investment location for projects of which the total investment capital is lower than VND 30 billion.
- The Provincial Peoples Committee arranges investment location for projects of which the total investment capital is more than VND 30 billion.
Requirement for Environment Protection:
+ Project of building Industrial Complex infrastructure: Report on assessment of environment effect is required.
+ Project of industrial production: Follow the Law on Environment Protection of Viet Nam.
Body receiving document: Planning and Investment Department
Issue Duration: 50 years
Licensing authority: The People's Committee of Lam Dong Province.