Policies to attract investment incentives to Kon Tum province
Policies to attract investment incentives to Kon Tum province
Preferential policies to encourage investment of the Central Government in Kon Tum Province
Policies on high-tech applied agriculture development (Decree No. 57/2018/ND-CP dated April 17, 2018 of the Government on policies for enterprises investing in agriculture and rural development sector)
1. Applying preferential policies, supporting investment in developing hi-tech applied agriculture of the Central Government
1.1. Preferential policies on land
a) If an enterprise having an agriculture project (special investment incentives, investment incentives or an encouraged agriculture project) has a land area allocated by the Government or permitted to change the use purpose of an existing land area, leases land and/or water surface from the Government, fees for using land, changing land use purpose, land rental and/or water surface rental shall be exempted as follows:
-Exemption from payment of fees for changing land use purpose of an existing land area for building house for workers in the projects and the land levy of that land area after change of use purpose (according to Article 5 of Decree No. 57/2018/ND-CP of the Government).
- Exemption from payment of land rental and/or water surface rental from the date on which it has land and/or water surface leased by the Government (pursuant to Clause 2, Article 6 of Decree No. 57/2018/ND-CP of the Government).
b) An enterprise that has an agriculture project (which is eligible for either special investment incentives or investment incentives, or is an encouraged agriculture project) and has land leased by the Government to build houses for workers or to use for non-farm purposes (construction of warehouse, workshop, drying ground, road or planting of trees), or changes the use purpose of an existing land area to serve the purposes specified in this Clause, shall be exempted from payment of land rental. (Clause 5, Article 6 of Decree No. 57/2018 / ND-CP of the Government);
c) An enterprise that has an agriculture project eligible for special investment incentives and leases or sub-leases land and/or water surface from households or individuals for implementing such project may receive a subsidy from the Government, equivalent to 20% of the land rental and/or water surface rental for the first five years from the date on which the project officially starts its operation. The land rental and/or water surface rental shall be calculated as regulated in Clause 1 Article 6 herein (Clause 1, Article 7 of Decree No. 57/2018/ND-CP of the Government);
d) An enterprise that has an agriculture project (which is eligible for either special investment incentives or investment incentives, or is an encouraged agriculture project) and receives land contributed as capital by a household or individual for establishment of a material zone shall be eligible to receive a subsidy which is VND 50 million/ha but shall not exceed VND 10 billion/project from the Government, and is not required to convert the form of use of such land area into leased land (Clause 3, Article 7 of Decree No. 57/2018/ND-CP of the Government);
đ) If an enterprise that consolidates land under both forms specified in Clause 1 and Clause 2 of this Article, it shall receive all of the subsidies granted according to these clauses from the Government (Clause 3, Article 7 of Decree No. 57/2018/ND-CP of the Government);
1.2. Preferential policies on tax
a) High-tech applied agricultural enterprises enjoys preferential enterprise income tax rates (Clause 7, Article 1 of the Law on amending and supplementing some articles of the Law on Enterprise Income Tax).
b) Investors with new investment projects in Kon Tum province are eligible for preferential enterprise income tax as follows:
- The tax rate of 10% for 15 years is applicable to incomes of enterprises from the execution of new projects of investment (Clause 7, Article 1 of the Law on amending and supplementing some articles of the Law on Enterprise Income Tax).
- Tax exemption for the first 4 years, 50% reduction in tax for the next 9 years for incomes of enterprises from the execution of new investment projects (Clause 8, Article 1 of the Law on Amending and Supplementing some articles of the Law on Enterprise Income Tax). After the expiry of the 50% reduction in tax for 9 subsequent years, enterprises continue to enjoy the preferential tax rate of 10% for the remaining 2 years.
1.3. Support to human resource training, market development
a) Enterprises with incentive agricultural investment projects shall receive subsidies from state budget as follows:
- A subsidy as VND 02 million/month/employee is given to the enterprise directly organizing personnel training courses for a period of not more than 03 months. If an enterprise joining a value chain provides training and technical instructions for farmers, it shall receive a subsidy equal to VND 500 thousand/farmer to be trained. Period for receiving subsidy is 03 months (Point a, Clause 1, Article 10 of Decree No. 57/2018/ND-CP of the Government);
- The enterprise shall receive a subsidy as 50% of expenses for advertising and creating brand names of national and provincial key products, and a subsidy as 50% of expenses for attending domestic and/or overseas trade fairs or exhibitions upon the approval by a competent authority (Point b, Clause 1, Article 10 of Decree No. 57/2018/ND-CP of the Government);
b) The subsidies specified in Clause 1 of this Article shall be given to every eligible investment project. Total amount of subsidies given to each project shall not exceed 10% of total investment of that project and not exceed VND 01 billion (Clause 2, Article 10 of Decree No. 57/2018/ND-CP of the Government).
1.4. Supporting enterprises in grassroots investment:
a) Enterprises having investment projects in agricultural product processing facilities, manufacturing plants of agricultural machinery, equipments and spare parts; and slaughterhouses, shall receive subsidies from state budget as follows:
- With regard to agricultural product processing facilities and slaughterhouses: The subsidy equal to 60% of investment funding but not exceeding VND 15 billion/project is given to construct waste treatment systems, traffic, electrical and water systems, workshops and acquire necessary equipment. Each investment project in agricultural product processing facility must satisfy the requirement that the value of processed agricultural products increases at least 1.5 times the value of raw agricultural products (Point a and c, Clause 1, Article 11 of Decree No. 57/2018/ND-CP of the Government);
- With regard to plants manufacturing facilities of agricultural machinery, equipment and parts thereof, and production facilities of auxiliary products: The subsidy equals to 60% of investment funding but not exceeding VND 05 billion/project is given to construct waste treatment systems, traffic, electrical and water systems, workshops and acquire necessary equipment (Point b, Clause 1, Article 11 of Decree No. 57/2018/ND-CP of the Government);
b) An enterprise investing in agricultural product storage facilities (including drying, irradiation, chilling, freezing and biopreservation of foods) may receive the following subsidy from state budget:
The subsidy equal to 70% of investment funding but not exceeding VND 02 billion/project is given to construct waste treatment systems, traffic, electrical and water systems, workshops and acquire necessary equipment. Eligibility requirements for subsidy:
- Capacity of a drying plant must be at least 100 tons/ day if drying rice, maize, potatoes, cassava and forest products; or 50 tons/day if drying aquatic by-products.
- Capacity of storage facility must be at least 1,000 tons/ facility if it is used to preserve fresh vegetables, fruits, teas, peppers and cashew nuts; or 100 tons/ facility if it is used to store plant varieties.
(Clause 2, Article 11 of Decree No. 57/2018/ND-CP of the Government).
c) When processed agricultural products prescribed in point a of this section are certified as national key products, the investment project is given an additional subsidy as VND 03 billion in addition to the abovementioned subsidies to invest in infrastructure facilities (Clause 5, Article 11 of Decree No. 57/2018/ND-CP of the Government);
d) Each enterprise investing in diary or beef cattle farm shall receive the following subsidy from state budget: The subsidy as VND 05 billion/project is given to construct waste treatment systems, traffic, electrical and water systems, workshops and acquire necessary equipment. In addition to the subsidy for infrastructure support, if an enterprise imports and directly breeds or cooperates with farmers in breeding of high-yielding cattle breeds, it may receive an additional subsidy as VND 10 million/cow (Article 12 of Decree No. 57/2018/ND-CP of the Government);
1.5. Credit policies
a) Loan security policy
- Individuals, households, cooperative groups, business households, cooperatives, unions of cooperatives and farm owners may borrow a loan without collateral from credit institutions according to the prescribed levels (Clause 2, Article 9 of Decree No. 55/2015/ND-CP and Clause 3 Article 1 of Decree No. 116/2018/ND-CP).
- Credit policies to promote agricultural production linkage (Article 14 of Decree No. 55/2015/ND-CP and Clause 7 Article 1 of Decree No. 116/2018/ND-CP).
- Credit policies to promote hi-tech agricultural production (Article 15 of Decree No. 55/2015/ND-CP and Clause 8 Article 1 of Decree No. 116/2018/ND-CP).
b) Interest rate support policy under the Program of supporting poor districts in Resolution No. 30a/2008/NQ-CP:
- Poor households, production and business households, enterprises, cooperatives and farm owners investing and developing production and business in poor districts who borrowed a loan from state-owned commercial banks may enjoy the interest rate support policy as follows (Article 2 of Circular No. 06/2009/TT-NHNN):
+ Receive 50% interest from the State budget when borrowing capital from state-owned commercial banks to develop agricultural production, invest in processing, preserving and consuming agricultural products.
+ Agricultural, forestry and aquatic product processing establishments belonging to enterprises, cooperatives, farms investing in production, processing and trading in poor districts may enjoy 50% interest from the State budget interest rates at state-owned commercial banks.
- Conditions for applying interest rate support policy (Article 4 of Circular No. 06/2009/TT-NHNN):
+ Investment in developing production and business activities in poor districts.
+ Satisfying loan conditions as prescribed in the Regulation on lending by credit institutions to customers according to the regulations of the Governor of the State Bank.
General investment incentive policies to investment projects in the province according to the Central’s regulations are as follows:
1. Special preferential investment fields stipulated in the Government's Decree No. 118/2015/ ND-CP dated November 12, 2015 detailing and guiding a number of articles of the Investment Law: Exemption of land and water surface rental for the entire lease term of the investment projects under special investment incentives, for example, "Farming, raising, processing and preserving agricultural, forestry and aquatic products".
2. Preferential policies on land rent and water surface rent (According to Article 19, Decree No. 46/2014/ ND-CP dated May 15, 2014 by the Government on collection of land rent and water surface rent).
2.1. Exemption of land rent, water surface rent for the entire lease term in the following cases:
a) Investment projects of special investment incentives, which invests in extremely difficult socio-economic areas.
b) Projects using land for constructing houses for workers of industrial parks under the projects approved by competent authorities; investors must not include the land rent cost in the house renting price.
c) Projects using land to build student dormitories from the state budget, the units assigned manage the student dormitories must not include the land rental in the house rental prices.
d) Land of agricultural production for ethnic minorities; land for implementation of projects of protection forest plantation and afforestation.
đ) Land for construction of non-business structures of public non-business organizations; land for constructing scientific research facilities of technological and scientific enterprises, if the relevant conditions (if any) are met, which includes: land for construction of laboratories, land for construction of technological incubators and incubating science and technology enterprises, land for construction of experimental establishment, land for construction of experimental production establishment.
e) Land for construction of works providing aviation services, excluding land for constructing the works for aviation service business.
g) Agricultural cooperatives use land as ground for constructing cooperative headquarters, drying yards and warehouses; to build service establishments directly serving agriculture, forestry, aquaculture and salt production.
h) Land for construction of maintenance and repair station and parking lots (including ticketing area, executive management area and public service area) for public passenger transport activities according to law regulations on road transport.
i) Land for construction of water supply structures includes: Structure for exploitation and treatment of water, pipelines and structure on the network of water supply pipelines and support works for management and operation of water supply systems (administrative houses, management houses, directive houses, workshops, warehouses for materials and equipment).
k) Land used for infrastructure construction in industrial parks, industrial complexes, processing and production areas under the planning approved by competent authorities as prescribed in Clause 2, Article 149 of the Land Law.
2.2 Exemption of land rent and water surface rent during the basic construction period under the projects approved by competent authorities but not exceeding 03 years from the date of the decision of leasing land or water surface. In case the land lessee uses the land for agricultural production (planting perennial trees) under the project approved by competent authorities, the time for basic construction of the tree garden is exempt from the land rent applied for each type of trees under perennial tree planting and tending techniques prescribed by the Ministry of Agriculture and Rural Development. Exemption of land rent and water surface rent during the basic construction period is carried out under projects associated with the State leasing new land, changing from land assignment without land use levy to land lease, excluding the cases of investment in building, renovating and expanding production business establishments and replanting tree gardens on the land areas being leased by the State.
2.3. Exemption from land rent and water surface rent after the exemption from land and water surface rent in the basic construction period as prescribed in Clause 2 of this Article, with details as follows:
a) Three (3) years for projects on the List of domains eligible for investment incentives; and for new business production establishments of economic organizations to remove under plannings or remove due to environmental pollution.
b) Fifteen (15) years for projects on the List of domains eligible for investment incentives invested in the areas with extremely difficult socio-economic conditions;
The list of domains eligible for investment incentives, domains eligible for special investment incentives, the areas with difficult socio-economic conditions and the areas with exceptionally difficult socio-economic conditions shall comply with provisions of law on investment.
The list of areas eligible for land rent incentives only applies to areas with specific administrative boundaries.
2.4. The exemption of land rent in economic zones and hi-tech parks shall comply with the Government's or the Prime Minister's regulations on investment incentives for economic zones and hi-tech parks.
3. Preferential policies on corporate income tax (Article 15 and Article 16 of Decree No. 218/2013 / ND-CP dated December 26, 2013 detailing and guiding the implementation of the law on corporate income tax).
3.1 Credit access support.
- Expanding credit guarantee activities for enterprises in the area; In particular, which encourages credit guarantees for SMEs in accordance with the provisions of Decree No. 34/2018 / ND-CP dated March 8, 2018 by the Government.
- Create favorable conditions to support SMEs to easily access the central and provincial support funds, credit capital sources of banks and credit organizations.
- Guide and support SMEs in accessing capital from the Central SME Development Fund under the Prime Minister's Decision No. 601 / QD-TTg of April 17, 2013 and capital source from the Development Investment Fund of the province, the provincial Science and Technology Development Fund, and the Provincial Start-up Support Fund.
- Integrating relevant target programs in the locality to bring high efficiency on using the State's support funds. Creating conditions for SMEs to access the capital source to participate in the supply of products and services for the New Rural Construction Program, Rural Water Supply and Sanitation Program.
3.2 Support of tax and accounting
- Tax administration agencies shall guide and propagate tax administration, accounting and tax declaration by simple methods for newly established enterprises and micro enterprises. Ensuring to always provide sufficient information related to tax policies and tax administrative procedures, and timely answering difficulties and problems related to taxes during enterprises’ operation and business production process.
- Coordinate with accounting software providers and accounting services to launch accounting software donation programs and support free accounting work to newly established businesses in period 2020-2025.
3.3 Support production premises
a) Contents of support
- Support 30% of the rent price for production sites in industrial parks and industrial complexes (excluding infrastructure use fees and related costs), determined according to the site rent of the investors in to infrastructure of industrial parks and industrial clusters for lease.
- Duration of support: Maximum of 05 years from the date of signing the first lease contract with the technical infrastructure investor of the industrial parks or industrial clusters. The total support amount during the enterprise operation must not exceed VND 100 million / enterprise.
- The support of ground rents for small and medium-sized enterprises is made through the price compensation for investors of technical infrastructure of industrial parks and industrial clusters in order to reduce the site rent for SMEs. The compensation amount is deducted from the land rent or supported from the provincial budget as prescribed.
b) Support conditions:
SMEs (except for small and medium-sized enterprises with foreign investment and SMEs with state capital) meeting the criteria at Article 6 of Decree No. 39/2018 / ND-CP dated March 11, 2018 of Government.
3.4 Market expansion support.
- Develop policies and programs to promote trade promotion, trade connections domestically and abroad; and provide funding support for SMEs involved in connecting international businesses, fairs, seminars on introducing technological products to seek business opportunities and expand markets.
- Strengthen activities and introduction programs to share domestic and international market information in a timely and accurate manner in various forms to assist enterprises in orienting production and business activities.
3.5 Support of information and legal advice
- Establish a database system, information to support businesses in the province to provide and disseminate information on the legal documents governing the operation of enterprises, policies, support programs for SME development and other information to support business activities of enterprises.
- Develop and upgrade the website of the Investment Promotion Center, a unit under the Department of Planning and Investment, to become a focal point for providing information, programs and plans to support SMEs, and receive the SMEs’ support registration in the province.
- Providing free consultancy and support of legal procedures for enterprise establishment for organizations and individuals that carry out procedures for enterprise establishment registration and conversion of business households into enterprises. Disclose information about consulting units, lawyer offices, etc. provide free legal advice and support to organizations, individuals and business households on procedures for enterprise establishment registration on the website of Department of Planning and Investment and Investment Promotion Center.
- Improve the quality and accelerate the processing of business registration documents submitted online; strengthening the work of guiding organizations, individuals and business households to carry out online business registration procedures.
- Building and forming a network of experts and consultants in all fields according to prescribed standards and conditions; publicly posting the network of experts and consultants on the website of the Investment Promotion Center and agencies related to SMEs to approach and select experts and consultants suitable to the needs of enterprises. ; Exemption or reduction of consulting fees for SMEs, micro enterprises in accordance with the law (excluding administrative procedure advice).
3.6 Support human resource development.
a) Contents of support.
- Organize online training to propagate knowledge about laws, legal support, taxes, accounting, etc. for SMEs to improve their understanding, enhance their financial management, management and operation of business activities strictly according to law provisions; coordinate with the Center of Supporting SMEs in the North under the Enterprise Development Department under the Ministry of Planning and Investment to propagate and disseminate to businesses in the province wishing to participate in online learning at http : //vietnamsme.gov.vn/he-thong-hoc-truc-tuyen.
- Support on-the-job training at enterprises for SMEs of manufacturing and processing with the support rate of 50% of a course’s cost total but not exceed once per year.
- Support newly established SMEs to improve their knowledge in developing, protecting and promoting domestic and international brands.
- For small and medium-sized enterprises, when sending employees to participate in elementary-level training courses or training programs of less than 03 months, they are exempt from training expenses. The remaining expenses are agreed by small and medium-sized enterprises and laborers. Laborers participating in the training courses must meet the following conditions: Having worked in small and medium-sized enterprises for at least 6 consecutive months; and their age must not exceed 50 for men and 45 for women.
b) Support conditions
SMEs meeting the criteria at Article 6 of the Government's Decree No. 39/2018 / ND-CP of March 11, 2018.
3.7. Supporting small and medium-sized enterprises to convert from household businesses.
a) Contents of support
- Free advice and guidance on the order, procedures and application file for enterprise establishment registration; order, procedures and dossiers for registration of certification of business eligibility for conditional business trades (if any).
- Exempting fees for first-time enterprise registration, free of charge for publication of content of first business registration at the National Enterprise Registration Portal; free of charge for evaluation and for the first business license for conditional business lines.
- Exemption of license fees within 03 years from the date of the first business registration certificate.
- Free consultation and guidance on tax administrative procedures on accounting regime within 03 years from the date of being granted the first business registration certificate.
- Exemption or reduction of corporate income tax for a definite period as prescribed by laws on enterprise income tax.
- Exemption or reduction of land use levy for a definite period in accordance with the land law.
b) Support conditions
Small and medium-sized enterprises converted from business households meeting the requirements of documents specified in Clause 2, Article 15, Decree No. 39/2018 / ND-CP dated March 11, 2018 of the Government.
3.8 Support small and medium enterprises (SMEs) to start their creativestart-up.
- Support 50% of office rental cost for a period of 1 year, but not exceeding 03 million VND /month/ enterprise.
- Favorable conditions offered to preferential working office renting in State public working areas within 3 years.
- Enterprises investing in the construction of start-up support centers or common working areas to support creative start-up shall be supported with 20% of construction and renovation expenses which must not exceed VND 100 million / project.
- Organize creative start-up contests in the area and support the creation of innovative start-up ideas and projects organized by the province.
3.9 Support to participate in sectorial joint clustersand value chains
a) Contents of support.
- Support 50% of the cost for training to improve production technology and techniques at the scene, which must not exceed VND 10 million/ each training course/1 enterprise and 1 training course per year.
- Maximum support must not exceed 80% of the pavilion cost at trade fairs and exhibitions in the country and ASEAN area.
- Support 100% of the cost of trademark protection registration; 50% of packaging design costs, labels, and geographical indications registration.
- Support 100% of the cost of testing, inspection, testing and product & goods quality certification.
b) Conditions of support.
Small and medium-sized enterprises in the province participating in sectorial joint clusters and value chains of manufacturing and processing should meet the following conditions:
- Small and medium-sized enterprises have plans to organize the production of goods under the approved join joint venture model.
- Create products with competitive advantages and improve product value.
- There are joint venture contracts, sector links and value chains.
- Creating jobs for workers.
3.10.Support technologies, incubators, technical facilities and joined working areas
- Promote the implementation of support programs, disseminate the application of advanced technology and techniques to small and medium enterprises; encourage cooperation and technology sharing among businesses.
- Guide, encourage and support enterprises to apply the system of technical standards and international quality management systems; encourage enterprises to participate in programs of sectoral association, regional association, value chains and development of support technologies.
- Encourage and support enterprises to build and develop trademarks, register intellectual property, participating in research on technological invention to improve production and business activities; transfer of commercialization application of topics, schemes, inventions and innovations; support to connect businesses in the product chain.
- Establish and develop incubator models, technical facilities, and joined working areas in various areas under public-private partnership modality with the participation of business associations, domestic and foreign organizations and individuals to assist small and medium-sized enterprises in researching, transferring technologies, and testing products successfully for probable commercialisation.