danang investment promotion agency 04-2017 pci … · 2017-06-12 · projects included us$284.75...

DANANG INVESTMENT PROMOTION AGENCY 04-2017

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INVESTMENT NEWSLETTER 02PCI 2016: DA NANG CONTINUES TO TAKE THE LEAD

Da Nang International Fireworks Festival 2017 (DIFF 2017)

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ダナン市投資ニュースレターダナン市投資ニュースレター

FDI INTO VIETNAM

FDI OVERVIEW

According to the statistics of the Foreign Investment Agency (Ministry of Planning and Investment), as of April 20th 2017, in Vietnam, there were 734 new projects that were granted investment certificates with total registered capital of 4.8 billion USD, up 3.2% over the same period in 2016.In addition, there were 345 projects registered to increase investment capital, with total registered capital increase of 4.4 billion USD, increased by 241.8% over the same period in 2016. Also, there were 1,687 capital contribution and share purchases transactions of foreign investors with total

investment capital of 1355 million USD, up 206.8% over the same period in 2016.Thus, totally in the first quarter of 2017, the total newly registered, increased and contributed capital to buy shares were 10.6 billion USD, increasing by 40.5% over the same period in 2016.As of March 20th, 2017, there were 23,272 FDI projects in force in Vietnam with a total registered capital of US$ 302.6 billion, including 19,329 100% foreign-invested projects, 3,693 joint ventures, and other BOT, BT, BTO and cooperative contracts projects.

FDI INTO VIETNAM 2016

Indicator Unit First 4 month in 2016

First 4 month in 2017 Growth(%)

Realized capital Mil. USD 4,650 4,800 103.2

Registered capital Mil. USD 7,542.22 10,597.98 140.5

Newly-licensed capital Mil. USD 5,082.94 4,881.61 96.0

Increased capital Mil. USD 1,803.99 4,361.15 241.8

Number of project

Newly-licensed projects Projects 697 734 105.3

Capital- increased projects Projects 314 345 109.9

Export

Export (Including crude oil) Mil. USD 37,932 44,053 116.1

Export (Excluding crude oil) Mil. USD 37,240 43,120 115.8

Import Mil. USD 30,569 38,298 125.3

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DANANG INVESTMENT NEWSLETTER

Processing and Manufacturing

Source:Foreign Investment Agency (FIA) Vietnam’s Ministry of Planning and Investment

Real Estate

Wholesale, retail

Others

FDI INTO VIETNAM BY SECTOR

TOP 5 FDI INVESTORS IN VIETNAM

CountryNewly issued

projects

Newly-registered

capital (US$ million)

Increased- capital

projects

Additional registered


Newly-registered and additional


South Korea 234 1,092.10 114 2,723.51 4,053.42

Japan 107 1,521.56 68 217.00 1,858.58

Singapore 55 498.90 26 469.33 1,105.65

China 80 735.17 15 37.98 902.66

Taiwan 26 77.73 31 555.38 789.14

02


84.9%

4.4%

3.85%

6.5%

FDI INTO DANANG

According to the statistics of Da Nang Department of Planning and Investment, from January 1st to March 15th, 2017, 08 FDI projects were granted the Investment Certificates with a total newly-registered capital of USD 6.13 million, and 02 FDI projects increased their registered capital. In total, Da Nang has attracted nearly USD 7 million, up 35% compared to the same period in 2016.

As of March 15th, 2017, there were 469 FDI projects in force with total registered investment of US$3,263 mil. Most of the projects are processing-manufacturing, consultancy-management, information technology & communication and import & export rights…



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SUPPORTING INDUSTRY HOPED TO MEET 65% OF DOMESTIC DEMAND BY 2025 The Prime Minister has approved a programme on developing the supporting industry which is expected to meet 45 percent of the demand of domestic production by 2020 and 65 percent by 2025.The programme focuses on the supporting industry in the fields of components and spare parts, textiles-garment and footwear, and hi-tech industry.It will prioritise the production of metal, plastic and rubber components and spare parts used for electrical and electronic products in a bid to satisfy 55 percent of the demand for domestic manufacturing.Material production will be the focus of the supporting industry that serves textile-garment and footwear manufacturing, thus raising the rates of domestically-made materials in these industries to 65 percent and 75-80 percent by 2020, respectively.To support the hi-tech industry, focus will be put on the production of materials and specialised equipment, software and services. The programme will facilitate the establishment of companies which provide specialised support equipment and machinery repair services. It will also encourage the formation of research, development and production systems for new materials while assisting technology transfer.

NEW RECORD IN FDI ATTRACTION IN THE FIRST QUARTER OF 2017In the first quarter of 2017, total FDI in the country valued at US$ 7.71 billion, nearly doubling the US$ 3.4 billion amount recorded in the first two months and up 91.5% against the same period last year, the Foreign Investment Agency (FIA) reported.The FIA under the Ministry of Planning and Investment announced that as of March 20, 493 new FDI projects got business licenses with a total value of US$ 2.917 billion, representing a year-on-year rise of 6.5%.In addition, 223 projects got additional capital worth US$ 3.94 billion, up 206.4% against

the same period last year.Foreign investors bought US$ 852.86 million of shares, up 171.5 % against the same period last year.In the January-March period, total amount of FDI was US$ 7.71 billion, making a year-on-year surge of 91.5%.

Large-scale newly-registered and capital-added FDI projects were attributed to the sharp increase in FDI attraction in FIRST QUATER. Especially, the Samsung Display Viet Nam project added US$2.5 billion to its ongoing project in the northern province of Bac Ninh. The Taiwanese investor registered to increase investment funds at Polytex Far Eastern Company by US $485.8 million and Coca-Cola Viet Nam supplemented US $319.8 million in Ha Noi. Newly licensed projects included US$284.75 million Vietnam-Singapore Industrial Park III (VSIP 3) in Binh Duong, US$269.54 million Tole Panel Plant in Binh Phuoc and US$220 million KVT-1 tire fiber project of Kolon Industries Inc.

VIETNAM WELCOMING NEW INVESTMENT WAVE FROM EUROPE VIA EVFTAAccording to economic experts, the signed FTA between EU and Vietnam is expected to encourage the investment wave from European businesses into Vietnam.The first wave marks a trend of some manufacturing companies transferring from Europe to Vietnam for competitive production costs, especially when import tax is dramatically reduced, even to zero. Vietnam will be beneficial from increased employment for abundant young and well-trained labour at lower cost.

The second wave indicates the emergence of European businesses providing products that can meet the mid and long term demands of the Vietnamese market. These companies are expected to focus on enhancing manufacturing capacity and together with foreign products to supply the local market with high quality products.Over the past few years, the Vietnam- EU trade relation has witnessed a significant growth. The current two-way product and service trade has reached approximately 40 billion Euros annually and is expected to climb to 100 billion Euros in 2025. By exploiting this relation, the bilateral economic relation can be raised to a higher level.

EVFTA can be considered as a new generation FTA between Vietnam and 28 EU member states. EVFTA and Trans-Pacific Partnership (TPP) are FTAs that have largest and highest commitment by range and level of Vietnam so far. On December 1st 2015, EVFTA negotiation had come to conclusion and the text was announced on February 1st 2016. EVFTA is expected to take effect in 2018.

VIETNAM-JAPAN TRADE AIMS AT 60 BILLION USD IN 2020After more than 40 years since trade relation between Vietnam and Japan was established, the current economic relation between 2 nations has been dynamically developed. Japan is among the most significant economic partners of Vietnam and Vietnam has also become an important economic partner of Japan.The growing economic relation between 2 countries is indicated by the growing interest in investment of leading Japanese corporations including Honda, Sony, Toyota, Canon…According to statistics of Ministry of Industry

and Trade, the two-way trade of Vietnam and Japan was only 9.93 billion USD in 2006; nowadays the number has reached 30 billion USD and will possibly double that in 2020.Only in 2016, export to Japan from Vietnam reached 14.68 billion USD, making Japan the second largest export market of Vietnam after China.Currently businesses of the two countries continue to promote the achievements by actively taking advantage of the opportunities brought about by the Vietnam - Japan economic partnership agreements (VJEPA). According VJEPA commitment, to facilitate Vietnamese goods, within 10 years (from 1/10/2009) export to this market will eliminate nearly 95% of tariffs. For nearly eight years, thousands of tariffs have been decreased to 0%, thus many businesses took advantage of the opportunity to increase exports. Vietnam’s export categories to Japan are quite diverse such as textiles, fishery products, computers, electronic products and components, footwear, wood products, glass...Prospects for 2017 and the coming years show that Vietnam’s export to the Japanese market continues to remain a high growth rate. Enterprises will continue to seize the advantage from VJEPA, working with relevant agencies to participate in the promotion programs for connecting with Japanese businesses to increase exports.

JAPAN HELPS VIETNAM WITH IT TRAININGAt a meeting with the Ministry of Information and Communications on March 14, Gen Narui, chairman of the Japan Linux Associationsaid Japan is in need of human resources in the IT sector due to the declining birth rate of the country. Therefore, the northeastern Asian country has to hire a large number of high-skilled engineers from other countries to offset the shortage of labor in the sector.Meanwhile, many Japanese IT enterprises are exploring opportunities for cooperation with Vietnam for the development of human resources in the IT sector.Gen Narui pledged to give more support for the country in training IT engineers, especially in the field of open source software, and said the association is one of the world’s largest organizations providing certification for this field.

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NEWS - EVENTS

DANANG INVESTMENT NEWSLETTERDANANG INVESTMENT NEWSLETTER



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PCI 2016: DA NANG CONTINUES TO TAKE THE LEADOn March 14th, the Vietnam Chamber of Commerce and Industry (VCCI) announced the 2016 Provincial Competitiveness Index (PCI).In the fourth consecutive year and 7th time in 12 years since the first PCI survey and publishing, Da Nang had the privilege to top in PCI ranking with a score of 70.

Da Nang’s general score increased by 1.36 points, being 11.8 points higher than the median PCI score and having seven out of ten sub-indices increase compared to 2015. There were a number of sub-indices which underwent an incredible rise such as Pro-activity of provincial leaders (increasing by 0.89 points from 6.17 points to 7.06 points) and Policy Bias (increasing from 5.45 points to 4.77 points). Besides, scores in other sub-indices such as Labor Training, Time Cost, Legal Institutions, Informal Charges, and Market Entry were also improved. However, the other sub-indices including Land Access, Business Support Services and Transparency decreased by 0.06, 0.07 and 0.11 points respectively.Da Nang’s PCI rankings showed recognition in efficient improvement of administrative procedures of the city in 2016 such as investment certificate issuance, enterprise registration, land, labor training…With regards to FDI enterprises’ perceptions, which were collected from the survey of 1,550 businesses from 46 different countries having operations in the 14 provinces with

highest FDI enterprise proximity, the result of 2016 PCI-FDI investigation revealed many improvements and preferences for investors. In 2016, 11% of FDI businesses admitted to expand investment and 63% recruit new labour. The employment increase was the highest recorded in the PCI-FDI survey in the past five years. Legal changes created friendly legislative environment for direct foreign investors. However, foreign investors assumed that access to budget, planning and master planning information remained challenging.

DA NANG IDENTIFIED 10 CRITERIA TO IMPROVETHE CITY’S BUSINESS ENVIRONMENTDa Nang People’s Committee has issued Decision No. 1090/QD-UBND on implementing solutions to improve the city’s business environment and competitiveness in 2017 in accordance with Resolution 19 of the Central Government.Da Nang focuses on improving the 10 criteria to enhance the city’s business environment and competitiveness in the 2017 with the vision towards 2020. Accordingly, the city administration intends to simplify administration procedures, reducing time and costs. For example, business registration duration would be reduced from 12.5 days in 2017 to 8 days in 2020; construction permit application duration would be reduced from 94-141 days to 70-88 days; cross-border commercial transactions reduce from 160 hours to 110 hours ...* Prior to that, Da Nang People’s Committee issued Decision No. 892/QD-UBND to establish a roadmap to provide online public services in Da Nang city over the period of 2017-2020. The ultimate goal is to increase the number and efficiency of online public services provided by agencies and localities in Da Nang to levels 3 and 4.

DA NANG SUPPORTS CAPITAL TO DO RESEARCH IN SCIENCE AND TECHNOLOGY FOR BUSINESSES IN THE CITYFrom 2017, in addition to current incentive policies, the city will support capital for scientific and technological research for businesses in Da Nang, in particular: support up to 70% of the cost of research of new technologies and process... Each project can receive up to VND 3 billion/enterprise/year. Projects involving technology transfer can receive support of up to 30% of the cost of hi-tech equipment and 15% of the cost of equipment aiming at improving productivity, product quality and energy saving. In addition, the city continues to support quality, metrology and quality assurance activities. The total amount of support for this activity is up to VND 500 million/business/ year.At present, the city has plans to further support businesses through policy mechanism, investment environment improvement and competitiveness enhancement.

DA NANG CITY APPEALS FOR MORE UK INVESTORSOn April 10th, 2017, Da Nang’s government delegation, led by municipal Party Committee Secretary Nguyen Xuan Anh met with representatives from the Vietnamese Embassy in the UK, the Biwater Group, and Aston University.During a reception for his guests from Da Nang, the Vietnamese Ambassador to the UK and Northern Ireland, Nguyen Van Thao, highlighted the fruitful results from the bilateral diplomatic and economic relationships between Viet Nam and the UK. In particular, Viet Nam has to date attracted investments of over 4 billion USD from the UK, and 300,000 British people visited the country last year. Currently, over 12,000 Vietnamese students are studying at UK universities. Given the new freedoms after Brexit, several British companies now intend to promote their business activities in Viet Nam, with a particular focus on Da Nang which has great potential for the development of tourism and education.In another meeting with some representatives from the Biwater Group, Secretary Anh highly praised the British group for their professional

skills, experience and investment activities in Viet Nam. He took the opportunity to appeal for the group to conduct research and offer their best technical and financial solutions for Da Nang’s wastewater treatment and environmental protection projects. The Biwater Group’s leader affirmed, ------------------------------------------------------------“Viet Nam will receive between 1 and 2 billion USD from the UK in official development assistance (ODA) loans in the near future. Therefore, Da Nang will have the opportunity to access this fund to implement its environmental projects.” ------------------------------------------------------------During his meeting with some representatives from Aston University in Birmingham, Secretary Anh remarked that the implementation of the Viet Nam-UK University project in Da Nang will match with the development strategies of Da Nang University, and those of the city as a whole. Da Nang is aiming to become the main centre in the central region and highlands for education and training, science and technology, and start-ups. In response, Aston’s Director, Prof Alec Cameron, spoke highly of the potential of the project due to Viet Nam’s large population size, its stable economic growth, and its studious students.

INTERNATIONAL TERMINAL AT DA NANG INTERNATIONAL AIRPORT TO BE COMPLETED SOONConstruction of a new terminal at the Da Nang International Airport is scheduled to be completed in late March to serve foreign passengers, especially delegates to meetings held within the framework of the Asia-Pacific Economic Cooperation (APEC) Year 2017.As one of key infrastructure projects in Da Nang, the construction of the terminal began in November 2015 with a total investment of over 3.5 trillion VND (154 million USD).The project comprises 3 main components: an international passenger terminal, an overpass and a parking area.Beside these facilities, the Viet Nam Airlines Corporation is investing in a VIP lounge at the airport, which aims to serve domestic and foreign high-level delegations to Da Nang, especially those attending APEC meetings.



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DANANG INVESTMENT NEWSLETTER DANANG INVESTMENT NEWSLETTER

Deputy Director of the Da Nang International Airport Management Board Hoang Viet Ha said the contractors have to date completed about 80% of the work.The 48,000m2 terminal has a designed capacity of 4 million passengers each year by 2025 and provides parking space for over 400 automobiles.The Da Nang Airport is the 3rd largest international airports in Viet Nam after the Noi Bai and the Tan Son Nhat International Airports. It is an important gateway to central Viet Nam.

NIWA FOUNDRY VIETNAM’S INAUGURATION CEREMONY IN DANANG HI-TECH PARKOn March 10, Niwa Japan inaugurated the new plant of Niwa Foundry Vietnam at Da Nang Hi-tech Park.Niwa has been operating in Vietnam for four years, supplying cylinder-block engine castings. “Niwa has received a great number of purchase orders over the last 10 years. This is a fruitful achievement for constant efforts to build reputation and credit of the company,” Chairman Tatsumi Niwa said in his opening remark.Niwa Foundry Vietnam was built on a 3.11 hectare site at Da Nang Hi-tech Park in Hoa Vang District with total investment capital of approximately $30 million. The plant will manufacture engine castings for hydraulic parts, and high precision mechanical parts used for industrial machinery including excavators and bulldozers and agricultural machinery including harvesters and tractors. The plant will provide products to businesses of both Japan and Vietnam. “As one of the 10 leading companies in foundry firms of Japan with over 60 years of experience, Niwa Foundry Vietnam will provide products appropriate for the development of national and municipal supporting industries, especially when there are limited suppliers for supporting products,” said Ho Ky Minh, vice chairman of Da Nang People’s Committee at the ceremony. “At the same time, Niwa Foundry Vietnam is expected to be a driving force for supporting industries of Da Nang and central Vietnam.”

FOREIGN INVESTORS FIND DREAMS COME TRUE IN DANANG PROPERTYAhead of the 25th Asia-Pacific Economic Cooperation (APEC 2017) summit, which will take place in Da Nang in November 2017, a total of 13,000 rooms in local 4 and 5-star hotels and seaside resorts will be earmarked to meet the demand for accommodation during the event.In addition to funds from the central government’s budget, appeals for public investment have been made by the city authorities to deploy some important local projects in preparation for this international-level event. The Chairman of the Da Nang Travel Association and General Director of Furama Resort Da Nang, Mr. Huynh Tan Vinh, remarked that APEC 2017 will offer a golden opportunity for the city to advertise its image to international friends. Leaders from the APEC’s 21 member economies, along with over 1,000 world-renowned businessmen, will attend meetings within the framework of APEC 2017.Taking advantage of APEC 2017, domestic and foreign investors are now focusing on developing more high-end tourism real estate projects in the city in order to offer luxury accommodation to the event’s participants, as well as to keep up with the future development trends of the local tourism sector. Notable are the 5-star Anh Duong-Soleil Da Nang hotel-apartment complex and the 5-star Grand Tourane Hotel, both in Son Tra District, plus the Blooming Tower Da Nang in Hai Chau District. Construction units are accelerating the implementation of these large-scale projects to ensure that they will be put into use in time for APEC 2017.Over the 2016 - 2017 period, 5 new 5-star hotels are expected to be put into operation. Also, more seaside villas, holiday resorts, and international-standard entertainment areas will be built in the city very soon.

DA NANG CITY AIMING TO BECOME AN INNOVATIVE START-UP DESTINATIONDa Nang People’s Committee Chairman Huynh Duc Tho has recently approved a project to expand the city’s start-up ecosystem by 2020, with a vision towards 2030.Under the project, by 2020 Da Nang will have fully deployed national government-issued preferential policies for local start-ups, and perfected the city’s incentives for them. The focus will be on linking the municipal start-up portal with the national innovative and start-up one, giving financial aid for a total of 200 start-up projects, and establishing 100 new start-up businesses.Also, between 8 and 10 new business incubators centres will be created in the city, especially in universities and private or public/private partnership businesses.

More start-up training programmes will be introduced, and start-up clubs will be established at all local universities and colleges. Importance will also be attached to setting up between 3 and 5 venture capital funds and establishing a municipal Start-up Support Fund.By 2030, Da Nang aims to become one of the leading start-up hubs in Viet Nam, with sustainable development, an innovative start-up ecosystem, an improved legislative system, and a favourable investment environment for investors from both home and aboard. The city aims to be attractive to start-up and innovative businesses from all ASEAN member countries.

VIETNAM’S POTENTIALS FOR SOLAR ENERGY PRODUCTIONDue to rapid industrialization, energy consumption growth levels have been double that of Vietnam’s already high GDP growth levels, growing on average with approximately 12 percent per year from 2006 to 2015. As a result, almost all Vietnamese receive electricity at home, and the last rural villages are expected to be powered up by 2020. On 18 March 2016, the government revised the 7th Power Development Plan for 2011 to 2030 and placed a stronger emphasis on renewable energy and the liberalization of the market. Hydropower remains the most popular alternative, but its market share will take a large hit from now to 2030. In the coming years, solar, wind and bioenergy are ready to establish themselves as new energy sources in Vietnam. Together, they accounted for only one percent of total production in 2014. By 2030, this is expected to grow to over 10 percent as the government welcomes private investments in the energy sector and implements incentives for investments. Having one of the highest annual hours of sunshine globally, approximately 2,000 to 2,500 on average, Vietnam’s potential for

solar energy production is high. Vietnam’s solar map shows that the Southern regions in particular are suitable, reaching average solar intensity levels of 5kWh per square meter per day. By 2030, Vietnam hopes to produce 12GW of solar energy annually, coming from insignificant levels today.

SECTOR – FOCUSED

VIETNAM’S NEW INCENTIVES TO BOOST SOLAR POWER DEVELOPMENT

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NEW LEGAL REGULATIONS

Decree No. 01/2017/ND-CP amending and supplementing a number of decrees detailing implementation of the Land Law

Decree 06/2017/ND-CP on horse, dog racing and international football betting

On January 6th, 2017, the Government promulgated Decree No. 01/2017/ND-CP amending and supplementing a number of decrees detailing implementation of the Land Law. Decree 01 amends and supplements a number of important provisions in Decree No. 43/2014/ND-CP dated on May 15th 2014 detailing a number of articles of the Land Law, Decree No. 44/2014/ND-CP dated on May 15th 2014 regulating land prices, and Decree No. 47/2014/ND-CP dated on May 15th 2014 regulating compensation, support and resettlement upon land expropriation by the State.Decree 01 is highlighted as follows:- Provisions on lease of assets attached to land which is paid annually: Organizations, overseas Vietnamese, foreign invested enterprises lease land from the State pay annual rent; Land leased or land transferred in industrial parks, export processing zones, industrial clusters or craft villages that is annual paid and have been issued with certificates shall be entitled to lease assets attached to land which have been lawfully created if all the conditions specified by the law on real estate business are met.- Specifying the conditions for land use right transfer associated with the transfer of part or whole of projects which are not projects on construction of housing or infrastructure to transfer or lease. - Supplementing the provisions on using land with regards to the purchase, sale, transfer of shares and capital contribution in the enterpriseIn addition, the Decree also provides for the treatment of LUR being leased or mortgaged when the State recovers land; Land recovery due to violation of land use progress, failure to fulfill land users’ obligations; the case where the project is terminated in accordance with the law on investment; Shorten the 1/3 to 1/2 of time taken for land-related procedures...Decree 01 takes effect as from March 3rd 2017.

On January 24th 2017, the Government promulgated Decree06/2017/ND-CP on horse, dog racing and international football betting. According to the decree, horse racing, dog racing and international football betting in Vietnam is conditional business activity, not encouraged to develop and strictly controlled by state management agencies to ensure compliance with the provisions of this Decree and relevant laws.Only enterprises that are issued a certificate of eligibility for a betting business as prescribed by the Decree and enterprises that are piloted before the new decree promulgation can conduct betting business.VND is the currency used for buying betting tickets and payoutsEspecially for the international football betting service, the Government will allow only one enterprise, which will be selected through a bids process, to pilot an international soccer betting business for 5 years. After the piloting time, the Government will review and evaluate whether to continue to allow this business.The Decree specifies the prohibited activities in the betting business, including: Betting business without a certificate for betting business; The business is not in line with the content licensed by a competent state management agency as prescribed; taking part in arrangement or agreement to distort the results of a bet; businesses lending money to bestors to participate in bets.

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10


NEW INCENTIVES FOR SOLAR POWER PROJECTSOn 11 April 2017, the Prime Minister officially approved the issuance of Decision No. 11/2017/QD-TTg on supporting regime for the development of solar power projects in Vietnam. The Decision would take effect from 01 June 2017 to 30 June 2019. The Decision provides numerous incentives for of solar power projects in Vietnam, including:

Feed-in-tariff (FIT) rateVietnam Electricity Group (EVN) is responsible for buying the whole electric output from on-grid solar power projects with the electric buying price at the point of electricity receipt to be 2,086 Vietnamese dong/kWh (equivalent to 9.35 US cents/kWh) (VAT excluded). This FIT only applies for on-grid projects with capacity of solar cell being over 16% or of solar module being over 15%. There is no FIT for rooftop solar power projects if such projects are not grid-connected. This is one of the differences compared with the previous Draft Solar Decision which sets a separate FIT for rooftop projects when they are connected to the grid.The FIT is based on the VND/USD exchange rate issued by the State Bank of Vietnam on 10 April 2017 (USD 1 = VND22,316). This FIT will be adjusted according to the fluctuation of the VND/USD exchange rate as specified in the standard Power Purchase Agreement (PPA) to be issued by the Ministry of Industry and Trade. We note that the solar PPA will have a term of 20 years from the commercial operation date of the solar plant and can be extended/ renewed based on regulations in effect at that time.Investment incentivesInvestment capital: Investors may mobilize capital from domestic or overseas organizations and individuals to invest in solar power projects.Import duty: Solar power projects are exempted from import duty on goods imported to create fixed assets of the projects; components, materials and semi-finished products which are not available at home for the project’s operation.Corporate income tax: solar power projects will also enjoy the same corporate income tax exemption and reduction as projects in sectors

receiving investment incentives according to the current regulations on taxation. For example, corporate income tax rate of 10% will be applied for 15 years, tax exemptions within 4 years and tax reduction by 50% in the next 9 years.Land: Solar power projects, lines and transformer stations connected to the national grid enjoy the same exemptions and reductions in land use, land rental as projects being entitled for preferential investment treatment. Such incentives, among other things, include exemption of land rental within 3 years from the operation date of the project.Projects included in the Power Master PlanThe Power Master Plan, whether it is national or provincial, only applies for on-grid solar projects. Projects of 50MW or below will be approved by the Ministry of Industry and Trade to be included in the Power Master Plan, while those of more than 50MW will be approved by the Prime Minister. Thus, it could be understood that off-grid and rooftop projects do not have to be included in the Power Master Plan. This will save the investors the hassle of negotiating the PPA with EVN.

CONCLUSIONVietnam’s long coastline and many sunshine hours give it a lot of potential for solar energy. With the privatization of state-owned enterprises such as the EVN, the electricity market is set to become open and competitive. Solar energy generation in particular is expected to surge. Once the proposed incentives for solar energy generation take effects, the largest burden – lack of feed-in tariffs – for this sector will be overcome. Investors should keep a close eye on developments in the country, as Vietnam is getting ready for large amounts of investments in solar and wind energy projects to keep up with increased energy consumption and meet government goals.

References:Thailand: Điểm sáng thu hút vốn FDI vào

khu công nghiệp, Ths. Võ Thị Vân Khánh - Học viện Tài

chính

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Violations in betting activities such as ticketing, player management, bonus payment, information disclosure ... will be fined VND 10-200 million, accompanied by confiscation of the license temporarily or permanently.The decree officially takes effect as from March 31st 2017.

Circular No. 01/2017/TT-BTTTTon the list of encouraged information technology products

On February 16th 2017, Minister of Information and Communications promulgates the Circular No. 01/2017/TT-BTTTT on the list of focal information technology productsThe list is used as a source of reference for investment activities, tax and preference policies; serves the management of import, export, quality and other activities regarding information technology products.Products in this list meet at least one of the following criteria:- Satisfy domestic demand and create high added value;- Have great export Potential;- Have positive effects on technological innovation and economic efficiency with other economic sectors;- Meet demand of defense and security.Some typical products in this list are RFID tag and reader; open-source software for metadata analysis; information security products, etc.This Circular took effect on April 2nd, 2017

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Resolution No. 19-2017/NQ-CP on the main tasks and solutions to improve the business environment and enhance national competitiveness in 2017

The Government has issued Resolution No. 19-2017/NQ-CP dated February 6, 2017 on the continuous implementation of key tasks and solutions to improve the business climate and enhance the national competitiveness in 2017, with an orientation towards 2020The resolution set the goals by 2017 :- Viet Nam will at least meet the average level in terms of targets on the business climate- The processing time of procedures will be reduced by no more than 168 hours per year for tax and social security payment and no more than 120 days for granting construction licenses and related procedures, , issue of construction permit shall be finished within 63 days- Reaching the average points of ASEAN-4 countries concerning target groups on competitiveness (according to the World Economic Forum’s assessment) and meeting the average level of ASEAN-5 nations with regards to innovation indicators (according to the World Intellectual Property Organization’s assessment) - In terms of implementing e-government (according to the United Nations’ approach), Viet Nam will comprehensively renovate three indicator groups, including telecommunication infrastructure (TII), human resources (HCI) and online public services (OSI), towards the 80th ranking in the world by 2017, and the average points of ASEAN-5 countries and the minimum 70th ranking in the world.- Most of the popular public services relating to a number of people and businesses will be provided at the level 3, while the procedures of paying fees, receiving dossiers and returning results will be performed online (Level 4 public service).

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UPCOMING EVENT

EVENT TIME PLACE

Economic - Investment

Dialogue between Da Nang City leaders and Businesses TBD

Administration Center,24 Tran Phu street,

Da Nang City

Trade and business networking with Hong Kong enterprises May 11

The Reverie Saigon Hotel, 22-36 Nguyen Hue Street,

Ho Chi Minh City

Socio-cultural

Beach Flashmob 2017 April 27 East Sea Park , Da Nang

Da Nang International Fireworks Festival 2017 (DIFF 2017)

April 30 – June 24 Han River, Da Nang

Asia Golf Tourism Convention 2017 May 07–13

Ariyana Da Nang Exhibition and Convention

Center

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www. i n v e s t d a n a n g . g o v. v n14

ダナン市投資ニュースレター

DANANG INVESMENT PROMOTION AGENCY18th Floor, Danang Administrative Center, 24 Tran Phu St.

Danang CityTel: +84 236 3 886 243 | Fax: +84 236 3 810 056

Email: [email protected]

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danang investment promotion agency 04-2017 pci … · 2017-06-12 · projects included us$284.75...

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