Foreign investors’ businesses are prospering in Dong Nai province.

Tuesday - 19/07/2011 23:18

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Nine months after having been granted investment license by Dong Nai Industrial Zones Authority, Maguro Fire Safety has just inaugurated its factory in Amata industrial Park to produce fire-escape ladders, rescue, fire- prevent and fire-fight equipments used in high-rise apartment and office building.

Mr. Vo Van Mot, Chairman of provincial People's Committe, grants certificate of merit to Vedan enterprise

Mr. Uchino Yoshirosi, President of Maguro Japan, unveiled that these special products will make their debut in Vietnam market on October. He believed that the show-up of Maguro’ products in Vietnam market at this time will settle the demand of these equipments as the urbanization in Vietnam happens rapidly. A week ago, another Japanese Company of Sanyo DI Vietnam had officially put into operation a new factory with total investment capital 30 million USD to manufacture digital camera in Bien Hoa II industrial zone. It was 9 years since Sanyo has started its investment in Dong Nai to produce washing machine, refrigerator and air-conditioners. And its business is flourishing. Its products make up of a large share in Vietnam market and have penetrated into many foreign markets. As for digital camera, leaders of Sanyo Group is pursuing to built a production system in Japan, Korea, Indonesia, China and Vietnam with capacity of 15 million cameras per year.

In the evening of September 21^st, the provincial investment delegation consisting of 16 government officials and 14 representatives of enterprises located in the province, leaved for US with the aim to propagate list of projects to be encouraged to invest in and many investment incentive policies, especially investment incentive policy into Dinh Quan industrial zone which consists of the following items:

Domestic investors will be exempted from land-lease fee and infrastructure fee for five years since the day of its operation.

Foreign investors who invest in encouraged fields according to the Decision No. 24/2000/NĐ-CP issued on July 31^st 2000 by Government on detailing the implementation of foreign investment Law will be exempted from land-lease fee. Foreign investors who invest in other fields will be exempted from land-lease fee for 15 years since the enactment of land-lease contract. They will be exempted from infrastructure fee for five years. The income tax rate is 15 % and foreign investors will be exempted for 3 years. And the income tax will be reduced by 50% in the 7 following years.

About 16 years ago, Mr Vuong Trieu Thu, an envoy of Taiwanese Group of Vedan, was assigned to explore investment potential in one of ASEAN countries. After two years traveling to ASEAN countries, he decided to choose Vietnam. Vedan’s project in Phuoc Thai commune of Long Thanh District has transformed a poor commune of Phuoc Thai into a modern industrial zone. Now, Vedan is the top 3 company with biggest investment capital. Its investment capital reaches 422 million USD. It has expanded it production system by establishing 4 satellite companies in southeastern, highland and Northern of Vietnam. It products both meet the consumption of Vietnam market and are exported to foreign markets. Export turnover makes up of 30-40% to its total revenue. Vedan is realizing its dream to make Vietnam become home of it. Therefore, it has been granted many merits of provincial People’s Committee and Prime Minister.

Besides, many other companies located in industrial zones of Dong Nai such as Fujitsu, Mabuchi, Taekwang Vina, Tainan, Pouchen, Fengtay, CP Group, ChangShin, Cargill, Ajinomoto, TCL, VMEP, Happy Cook and Nestle are expanding their businesses. Especially, Suziki Group is going to put into operation its second factory with total investment capital of 20 million USD in Loteco industrial zone as to increase its output of automobile and motorcycle. It has gained the revenue of 492 million USD and contributed 74 million USD to State budget during its 9 year operation in Vietnam. Its current output is 10-fold higher than that of 1996 and the number of workers has increased to 500. By June 2005, Suzuki ranks second among 12 automobile enterprises.

Last but not least it is the successes of enterprises in the field of garment and textile such as Formosa Group and Nike. After two years, it has achieved the total revenue of 280 million USD. As for Nike, it has 7 partners in Dong Nai province with the workforce of 70.000 people. They have committed to enlarge their businesses scale.

All these means that Dong Nai is a place where foreign investors have experienced great successes of their businesses. It also means that Dong Nai still has land reserving for industrial developments and its infrastructure and human resource can meet any investors’ requirements. It has strong determination to conduct administrative reforms and is willing to accompany with enterprises for their long haul. In recent years, Dong Nai has creates many incentives and favorable investment environment for investors who invested in industrial zones in mountainous and remote area. Dong Nai is calling for investment into high-tech industry and services as to speed up the development of industry.

(Source Dong Nai Newspaper)

Author: admin