08:45 | 10/06/2015 Economy
Prime Minister Nguyen Tan Dung has agreed in principle to permit Saigon Industry Corporation to build a chip making factory worth VND6.6 trillion (US$309 million).
This will enable it to enjoy policy incentives from the Viet Nam Development Bank loans worth up to 60 per cent of the total investment cost.
The project will be exempt from import tax for five years - and probably also from value-added tax on equipment and supplies that are not produced locally. This will help the company's research and development activities.
Since it will apply high technology, the project will also enjoy a preferential tax of 10 per cent for a period of 30 years, tax exemption for four years, and a 50 per cent tax reduction for nine years.
In addition, it will get financial assistance under Decision 2457/QD-TTg on the national hi-tech development programme until 2020.
The project will be developed in accordance with the Government Decision 842/QD-TTg dated June 1, 2011. The Prime Minister has told HCM City government to appraise and approve the project.
He has also told it to make sure the investor implements the project in accordance with regulations and to make sure money is invested efficiently.
As proposed previously by the city government and the investor, a chip plant will be developed at Saigon Hi-Tech Park (SHTP). The investor has leased 10 hectares at the park.
In the middle of 2012, the HCM City authorities launched the chip industry development programme with a vision to achieve the sector's annual revenues of $100-150 million by 2017.
The programme will train about 2,000 engineers and technicians, and serve about 30 companies.
Currently, in addition to the project of Intel Products Vietnam, the Saigon Park has attracted investments from domestic enterprises, including an integrated circuit production project by Saigon Semi-conductor Technology Inc worth more than $257.5 million.
In a separate move, in May, SamSung Electronics began construction of the $1.4 billion Samsung Electronics HCM City Complex (SEHC) inside the Saigon Park.
The complex, covering 70 hectares, will focus on research and development and the production of high-end TV products such as SUHD TV, Smart TV and LED TV, besides other consumer electronics products, during its first phase of operation.
The complex is slated to go into operation in the second quarter of next year, and is expected to generate 15,000 jobs. Its products will mostly be exported.
The SEHC project received an investment licence in October 2014./.