Cao Bang to Complete Mechanisms and Policies to Attract Investment

In order to stimulate the investment flow, Cao Bang Province has been paying attention to perfecting mechanisms and policies for investment incentives, promoting administrative reform, accelerating land clearance and tackling other difficulties to ensure that investment projects can be quickly implemented.

 

Understanding that planning always needs to stay one step ahead, Cao Bang Province has quickly implemented and completed the planning involving many branches and sectors for the period 2011 - 2015 and towards 2020, at the same time continuing to review plans for projects such as small hydropower plants, and mineral exploitation and processing.

 

To attract domestic and foreign investors, Cao Bang has also reviewed and adjusted local investment policies and mechanisms to stay in line with the Investment Law and the Governmental Guiding Decree on implementing the Investment Law. Accordingly, investors who have investment project in the province are entitled to investment preferential treatments as follows:

 

First is preferential treatment for land: Investors will be exempt 11 years for investment projects in Cao Bang if the project is in prioritised fields; 15 years if investment project is in special prioritised fields, exempt from land rent for the whole operation time if using the land to build condominiums (not of business purposes) for employees working in industrial parks, border-gate economic zones or any other place approved by the authority.

 

Second is preferential treatment in business income tax: Investors are given tax exemption for 4 years and a preferential 50 percent of the normal rate for the next 9 years; new enterprises established from provincial investment projects are entitled to the income tax rate of 10 percent for 15 years from the time of going into operation.

 

Third is preferential treatment in export and import tax: Commodities listed in the Article 12 of Government Decree 87/2010/ND-CP issued August 13th 2010, which details the implementation of a number of articles of the Law on Export and Import Taxes, are exempted from export and import tax; commodities listed in the Article 15 of Government Decree 87/2010/ND-CP issued August 13th 2010 are entitled to import and export tax rebate.

 

Fourth is the State investment credit: The investment projects in Cao Bang will have preferential treatment in State investment credit (investment loans, post-investment support), export credit, insurance in loans and debt repayment, as well as risk management in investment credit and State export credits if investors are able to meet all conditions stipulated in Government Decree 75/2011/ND-CP issued August 30th 2011 on State investment credit and export credit.

 

Fifth is investment promotion support: Enterprises are given support of 30 percent of construction and brand registration costs with products of provincial characteristic; and 50 percent of construction and products’ origin certification costs with regionally competitive products.

 

Sixth is training support: Investors are supported with 100 percent of worker training costs to the third skill level (out of seven) training by the province. For the training in vocational schools or vocational training centres outside of Cao Bang, funding is decided by the provincial People's Committee based on current regulations.

 

Seventh is support in infrastructure investment: The state budget and many other support resources all have the mechanism of supporting infrastructure construction including: roads, electricity system, water supply, sewerage system of industrial parks, industrial complexes, border economic zones together with supporting budget for mine and obstruction clearance (if any).

 

In addition to the above preferential treatments, Cao Bang Province has also focused attention on the administrative reform under the "one door" mechanism to simplify administrative procedures, creating favourable conditions for investors.