11:05 | 25/06/2015 Economy
(VEN) - In recent years, industrial and economic zones in Vietnam and Tien Giang Province in particular encountered numerous difficulties in attracting foreign direct investment (FDI). Despite these challenges, the Long Jiang Industrial Park (LJIP) has showed its special attraction and is becoming one of the most successful FDI attractors in Tien Giang. It has attracted 21 foreign investors over the last six years.
Long Jiang IP General Director Yu Suo
LJIP was established in 2007 and is based in Tien Giang Province’s Tan Phuoc District. Licensed to be operational for 50 years, LJIP commenced infrastructure construction in May 2008 with total investment of US$100 million. With 540ha of industrial land and 60ha of urban land, the project is expected to become a model industrial and urban complex in Tien Giang Province.
For the last six years, LJIP has attracted 21 foreign investors from different countries with total registered capital of US$683.3 million. These include some large-scale secondary investors such as Texthong from Hong Kong (China), Hailiang, Kangna (China), Nissei (Japan), and Lock & Lock Living (Republic of Korea). By the end of 2014, 11 investors were operational in LJIP, generating jobs for 2,500 workers and contributing US$120-140 million to the gross domestic product (GDP) of the provincial industrial sector. In 2014, LJIP was listed among the top 10 famous brands in the Mekong Delta, which were recognized by the Vietnam Entrepreneurs Scientific Union in association with the National Office of Intellectual Property of Vietnam.
LJIP achieved these impressive initial successes thanks first of all to its favorable geographical location, adjacent to the Ho Chi Minh City-Trung Luong Highway, about 50km from Ho Chi Minh City, Saigon Port, Hiep Phuoc Port, and about 35km from Bourbon Port. This favorable location makes it convenient for export, import goods to be transported between LJIP and other places without traffic congestion. LJIP also has a ferry that can simultaneously receive six barges with a loading capacity of 600 tonnes each to serve the gathering of cargo for transportation to ports. Notably, LJIP is located in the center of the Mekong Delta which is home to abundant seafood and fruit resources, offering favorable conditions for agricultural businesses.
Secondly, LJIP offers investors attractive tax preferences. Specifically, businesses which are based in this IP will have to pay the corporate income tax at the preferential rate of 10 percent within 15 years since they begin to make revenue. They will be offered tax exemptions within the first four years since they begin to make profits and a 50 percent tax discount in the next nine years. Besides, investors will also be offered tax exemptions when importing machinery and equipment that form fixed assets and five-year tax exemptions when importing materials and semi-finished products which are yet to be manufactured in Vietnam. Businesses which want to sell most of their products overseas can register to be established in the form of export-processing companies so that they can enjoy import and value added tax preferences applied to export-processing zones. Moreover, the investment environment in Vietnam and Tien Giang Province in particular has been very good in recent years.
Thirdly, the Long Jiang IP Development Company Limited has identified LJIP as a long-term investment project that needs to be developed in a sustainable manner to become a model industrial and urban complex in Tien Giang Province. To be a green and clean IP, LJIP has been built according to the highest standard to consist of a 10,000cu.m-per-day wastewater treatment system in the first stage (total capacity of the system is planned to reach 30,000cu.m per day in the future). LJIP provides production space only for facilities which do not cause environmental pollution. The IP is willing to provide investors with free assistance in implementing necessary legal procedures to apply for investment licenses as well as in supervising the construction of their production facilities in LJIP. With 80 percent of its population being at the working age, Tien Giang Province has a large, young, dynamic and hard-working workforce. LJIP maintains its tight relations with Mekong Delta localities as well as provinces in the Southern Key Economic Zone to provide human resources for investors in the IP.
LJIP has received timely encouragement from state management authorities from the central level to the local level. Its general director has had the honor of receiving a certificate of merit from the prime minister. LJIP has also received a certificate of merit from the Tien Giang Province People’s Committee. In the time to come, LJIP will accelerate the construction of infrastructure for the entire planned area of the IP and a residential complex to serve investors in the IP. LJIP has taken the initiative in coordinating with the provincial people’s committee to organize investment promotion activities to attract investors to Tien Giang and LJIP in particular. Hopefully, LJIP will continue to make further contributions to the development of the provincial economy and the attraction of investment into Tien Giang Province in the time to come.