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Ho Chi Minh City Export Processing and Industrial Zones Authority
HEPZA (Ho Chi Minh City Export Processing and Industrial Zones Authority) was established under a policy of the Government to establish a new economic model to implement the renovation and open door policies of the 6th Congress of the CPV (1986) for industrialization and modernization.
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1.1. Overview:
HEPZA (Ho Chi Minh City Export Processing and Industrial Zones Authority) was established under a policy of the Government to establish a new economic model to implement the renovation and open door policies of the 6th Congress of the CPV (1986) for industrialization and modernization.
Until 2010, under the authority of HEPZA, there have been more than 15 industrial zones and export processing zones, with over 900 enterprises and 170,000 workers. Until 2020, the City would be home to more than 22 industrial zones and export processing zones.
1.2. Investment Incentives
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Exemption from import tax on equipment, machinery, special-use vehicles as part of the fixed assets of the enterprise; materials, accessories for export production; constructional material which have not been produced yet in Vietnam.
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Exemption from export tax on export products.
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Applicable VAT rates are 0%, 5% and 10%. The 0% rate applies to export of goods and certain services, including sales to EPZs.
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Tax rate:
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25 % applied for enterprises operating in EPZ&IZ excluding enterprises applied the incentive tax rate.
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10% for 15 year period, exemption 4 years and reduction for 9 consecutive years applied for new enterprises established to conduct projects in the following sectors:
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Manufacturing software products.
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High technology in accordance with the provisions of the law, scientific research and technology development;
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Investing in development of water plants, hydroelectric plants, water supply and drainage systems; bridges, roads, railroads, airports, seaports, river ports, stations and other important infrastructure projects determined by the Prime Minister
1.3. Preferential industries and services to attract investment until 2015
Mechanical manufacturing:
- To manufacture and assemble,
- To manufacture ship, machinery for agriculture and processing industry
- To manufacture machine-tool, electric equipment, engineering- electronics, industrial robots
Electronics and IT:
- To manufacture accessories, parts, industrial electronic products
- To manufacture computer, telecommunication equipment
- To manufacture software
- Research and development
- Human resource training
Processing Foodstuff
Chemicals industry:
- To manufacture pharmaceutical products, medicinal herbs, medicine.
- To manufacture chemical products for plastic industry, high-technical rubber products
1.4. Investment Process
One–stop procedure
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Contacts:
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Procedure / documents
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Step 1
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EPZ or IZ’s Infrastructure Developing Company
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Find available land/factories in EPZs and IZs and discuss land lease.
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Step 2
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HEPZA's Investment Department
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Register for investment certificates
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Step 3
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HEPZA's Investment Department
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Publish an announcement of establishment (Publish on three consecutively issues of a newspaper)
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HCMC Police Department (PC 13)
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Register enterprise seal/contact
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Complete legal procedures: Register the list of key executives (if any)
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The Branch of HCMC State Bank – Department of Foreign Currencies
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Open a bank account
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HCMC Tax Department
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Register for enterprise tax code
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Industry and Information Service Centerof HEPZA
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Visas for foreigners working in IZs and EPZs
Immigration: Apply for visas and extended visas
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Local Police Station
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Register for temporary residence for foreigners in EPZs and IZs
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Step 4
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EPZ and IZ Infrastructure Developing Companies
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Sign land lease contract or rent/purchase factory contract
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Step 5
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Environment And Construction Management Department of HEPZA
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Build/rent factories
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Step 6
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HEPZA Job Center
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Recruit labor
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(Source: HEPZA, 2010)
1.5. Land rates:
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NO.
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IZs/EPZs
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Area (ha)
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Leased land rate
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Land lease price (for reference)
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1
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Tan Thuận EPZ
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300
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95.40%
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168 – 200 USD/m2/lease period
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2
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Linh Trung 1 EPZ
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62
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100%
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-
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3
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Linh Trung 2 EPZ
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61.7
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100%
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-
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4
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Tân Tạo IZ (phase 1 & phase 2)
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373,3
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94%
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210 – 250 USD/m2/lease period
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5
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Tân Bình IZ
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130
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100%
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-
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6
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Lê Minh Xuân IZ
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100
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95.04%
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80 – 150 USD/m2/lease period
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7
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Vĩnh Lộc IZ
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203
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88.04%
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200 USD/m2/lease period
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8
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Tân Thới Hiệp IZ
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28
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100%
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-
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9
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Tây Bắc Củ Chi IZ
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208
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100%
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-
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10
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Bình Chiểu IZ
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27.34
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100%
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-
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11
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Hiệp Phước IZ (phase 1)
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311.4
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100%
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-
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12
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Hiệp Phước IZ (phase 2)
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597
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0%
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110 USD/m2/lease period
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13
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Cát Lái II IZ
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124
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100%
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-
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14
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Phong Phú IZ
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148.4
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0%
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-
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15
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Tân Phú Trung IZ
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542.64
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24%
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80 USD/m2/lease period
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16
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Đông Nam IZ
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283
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0%
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55 USD/m2/lease period
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(Source: HEPZA, 2010
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