Some Q&A to serve investors to understand more about the investment in Tân Đức IP in Long An Province:

1. What are the regulations on land use period of Tan Duc IP?​

Answer:

• Land use period of the 1^st Phase of Tan Duc IP is 50 years, until October 2055;
• Land use period of the 2^nd Phase of Tan Duc IP is 50 years, until June 2058.​

2. What are the minimum lease area and the minimum lease construction density of Tan Duc IP?

Answer:

• For the 1^st Phase area: the Minimum lease area is of 5,000 m², approved construction density is of 70%.
• For the 2^nd Phase are:  the Minimum lease area is of 6,000 m², approved construction density is of 60%.

3. Does the IP have other lease policy except land lease policy?

                Answer: Together with the industrial land lease, Tan Duc IP also has other lease policies such as completed factory/warehouse lease, other supporting                     services for investors such as factory designing – construction services, box meal service, green care service, logistics, and waste treatment and                               collection service. All services providing companies who are partners and subsidiaries of Tan Tao Group, have many experiences and capabilities to                           provide service with large and diversified quantity.

4. What are the advantages of the investment in Tan Duc IP?

Answer:

• Tan Duc IP locates in Duc Hoa District, Long An Province that is considered as a province who owns attractive investment environment, since the location of Long An is convenient for investor approach the regional markets, particularly Hochiminh City market. With various advantages for industrial development, from 1997 to date, Long An province has acquired 28 industrial parks with the total area of 10,216 ha (in which 5,000 ha have been developed with comprehensive infrastructure for lease), 32 industrial zones with the total are of 3,368 ha. The master plan of industrial park and industrial zone development is reasonably established, the Province is near Hochiminh City the most dynamic economy center of Vietnam.
• The IP is 25 km from Tan Son Nhat International Airport, 30 km from Cat Lai Port, near other important ports and roads toward Sai Gon – Trung Luong Highway toward Southeast region and Asian Highway toward western provinces.
• The IP is near (within 1km radius of) residential area and has close relationship with Tan Tao University. This fact creates the base of plentiful and qualified labor.
• The Province has the most favorable policies of land lease price, corporate income tax… for invested projects.
• The IP supports investors in procedures execution activities, including: submit for preferential policies for investment, investment certificate, other permits.
• Government and the Long An Province People Committee have strong support commitments.
• The Province has an environment that is identified for production and processing, with the presence of corporations such as Songwol (South Korea), Hong Seng Thai (Thailand), Givi (Italy) and other domestic and foreign businesses in the auxiliary industry and R&D sector.

5. What preferences does the investor benefit from when it invests in Tan Duc IP?

Answer:

The new invested project in Tan Duc IP will benefit from preferential corporate income tax (CIT) according to Section 3, Article 15 and Section 3, Article 16 of the Decree No. 218/12/2014, as the followings:

• For the first 02 years: CIT of 0% (from the taxable income year)
• For the 04 subsequent years: CiT of 8.5% (decrease by 50%)
• For the 04 final years: CIT of 17%
• After the preferential period: CIT 20% according to the regulation

                  Moreover, the investors will be exempted from Import Tax according to the decree No. 87/2010/NĐ-CP dated on 13/08/2010 by the Government.

6. Please describe the investment procedure of Tan Tuc IP and the maximum time of implementation?

Answer:

The investment procedure is implemented within 60 days (from the deposit time to the signing of the land lease agreement) after receiving all documents from the investor. The milestones are described as bellows:

7. Which fields is Tan Duc IP attracting investment in?

Answer: According to policy of Long An Province as well as the Government, the prioritized fields for investment attraction include:

• Electronic microchip, Electronic optics, Information Technology, Communication.
• Precision mechanics and automatization, Robot production.
• Applied biotechnology in agriculture sector, health care sector and environment sector.
• New material, Nano Technology, renewable energy.

                Moreover, Tan Duc IP still have quota for receiving dyeing, paint and construction materials production, based on the synchronized investment of waste                     water treatment infrastructure with advanced technology under the management of the Long An Province’s Department of Resources and Environment.

8. Together with land lease price, which costs and fees does investor have to pay during its operation in the IP?

                 Answer: The investor shall pay utilities use fees to the service providers (waste water treatment, water, power, and internet) and infrastructure                                    maintenance fees (based on the total lease area/year).

9. Are there difficulties of human resources recruitment?

Answer:

High quality human resources: Majority of Ips in Long An province is bordering and about 30 km from Hochiminh City Center. Benefiting from this advantage, the investors easily attract high quality human resources of Hochiminh City (the biggest cultural and economic center of Vietnam).

There are buses from HCMC to Long An Province’s IPs with the frequency of 15 – 30 minutes; the convenient traffic to HCMC makes the businesses easily carry out their recruitment.

Local human resources: According to statistics, in 2013, Long An Province has 898,100 working age labors. This labor force is locally trained in schools, vocational centers in order to supply labor force to businesses each year. Moreover, the change from agricultural area to industrial area and the modernization of agriculture create a large number of labor that will work in the IPs.

Human resources from Mekong Delta area: The advantageous location at the key location of HCMC and Mekong Delta provinces create favorable condition for Long An province to attract the majority of labor force of Mekong Delta area that contributes 40% of working labors in industrial parks and industrial zones of the province.

Moreover, the investor can contact Sale Division – Tan Duc Investment Corporation for more information.

Thank you very much.

Sales – Marketing Division

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