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Vietnam province seeks more investment

HANOI - Vietnam's southeastern province of Tay Ninh is calling for further investment to develop infrastructure in its Moc Bai border economic zone.

The province has estimated that more than VND250 billion (US$16 million) will be needed to complete construction for the planned infrastructure. The investment is required primarily for the zone's 220 hectare Sun City, home to an international trade and service center, a bonded warehouse and a residential area.

Despite its incomplete infrastructure, the zone has already attracted more than 30 projects worth about VND1.5 trillion ($95 million), invested in mostly by Ho Chi Minh City-based businesses.

"The economic zone is attractive to investors as it is handy for developing trade and tourism as well for the construction of factories for exports," said Tran Luu Quang, vice director of the zone's management board.

Located near the Trans-Asia Highway linking Ho Chi Minh City to the Cambodian capital Phnom Penh and other destinations, the border zone is considered a gateway to other Southeast Asian markets.

The zone, which will also house the 105-hectare Sun industrial zone, hopes to complete construction on its infrastructure by 2010.

To meet this goal, Quang has asked for help from other investors: "We cannot do it alone, but very much need the involvement of other investors, both domestic and foreign," he said.

Quang and other provincial officials have promised incentives including tax breaks and low rental rates as well as simplified licensing procedures to investors in the zone.

Investors with land not yet serviced by basic infrastructure are exempt from rent for the first four years and will get a 50% rebate for four years after that.

Tax on repatriation of profits by foreign investors will be just 5%, and Quang said the province's authorities have recently asked the government to turn the zone into a duty-free area.

The province plans to encourage industrial development, especially in the clothing, footwear and electronics sectors, as it considers this a key measure for the development of the provincial economy.

(Asia Pulse/VNA)


Jul 14, 2004


 
         
         
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