Investment Development in Dungquat Economic Zone. Da Nang July 31, 2009

Transcription

1 Investment Development in Dungquat Economic Zone Home of Vietnam s first Oil refinery Da Nang July 31, 2009

2 IN THE ACCELERATED GROWTH Dung Quat Economic Zone is designated for diversified investment fields, especially oilrefining, petrochemical and heavy industries (steel mill, shipbuilding, mechanics, cement production, heavy equipment production, automobile ); efficiently facilitated by deep-sea port, Chu Lai airport and industrial Urbans of Van Tuong and Doc Soi. 2

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4 M U LT I F U N C T I O N A L ECONOMIC ZONE 1. Heavy industries: oil refining, petrochemical, steel mill, ship- building, equipment manu- facture. 2. Light industries, 3. Dungquat deep seaport, non-tariff zone (bonded zone), 4. Van Tuong New Urban, Eco - t o u r i s t C o m p o u n d, Services of financing, banking, real estate... June

5 IN THE ACCELERATED GROWTH Essential infrastructure system inside Dung Quat Economic Zone has been completed and developing of other utilities to offer a comprehensively improved environment for inzone enterprises. More than 160 projects have been licensed and approved in principle, with combined investment capital of around 10,3 bil USD implemented capital of around 4 bil USD 5

6 IN THE ACCELERATED GROWTH Some large-scale plants have operated such as: Oil Refinery of 6,5 mil tons/year and expands to 10 mil tons/year in preparation; Doosan- Vina heavy industries plant; shipping industrial complex. Other large- scale projects are implementing such as the Steel Mill of 5 mil tons/year, PP plant, BioEthanol project It s projected that by 2012 the combined registered capital of Dung Quat based enterprises will reach approximately 12 bil USD, including implemented capital accounting for 50%. 6

7 IN THE ACCELERATED GROWTH With the concept of Dungquat as the driving force of Central Vietnam s economy in mind, the nation s Government has agreed to set up Project Planning, expanding and developing Dung Quat Economic Zone as Special Economic Zone or Industrial City and becoming the oilrefining and petrochemical center of the whole country. Dungquat has the most favorable regime of investment incentives in terms of land, taxation, banking, customs, ex-importation... 7

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9 Television Station Vocational training School VạnTuong New Urban Hospital Cultural & Sports Center 9

10 NUMBER OF PRO-INVESTEMENT INCENTIVES Import duties on materials, raw materials; semi-finished products which have not been domestically made at standard quality shall be exempted for the first 05 production years. Corporate Income Tax (CIT) rate of 10% shall be applied for the first 15 years since business commencement; CIT exemption for the first 4 profit-making years and a haft reduction for the 9 years thereafter. High-tech projects and those promising visible importance are eligible for the Prime Minister s consideration of offering full-duration 10% tax rate incentive. 10

11 INVESTMENT INCENTIVES A half reduction of personal high-income tax. Land lease term is up to 70 years. Exemption or/and reduction of land, water surface rental, as follows: Full-duration exemption for projects of speciallyencouraged category; 15-year exemption for projects of encouraged category; 11-year exemption for others. 11

12 INVESTMENT INCENTIVES Assistance in skilled workers training and recruitment. Foreigners residing in Vietnam and foreign investors are eligible for buying houses and leasing residential land in Dungquat EZ. Applicable in Dungquat is also the policy of leasing land in Van Tuong New Urban to build accommodations and leisure facilities serving enterprise managers, specialists; workers dormitories. 12

13 INVESTERMENT FIELD THAT ENJOYS COMPARATIVE ADVANTAGES IN DUNGQUAT AND ARE ESPECIALLY ENCOURAGED Petrochemical, chemical industries; Large-scale and heavy industry (steel mill, manufacture of ship equipment, mechanics fabrication). Assembly of automobile and production of related engines, accessories; Assembly and production of electrical, electronics equipment; 13

14 INVESTERMENT FIELD THAT ENJOYS COMPARATIVE ADVANTAGES IN DUNGQUAT AND ARE ESPECIALLY ENCOURAGED. Production of high-standard building materials, new materials; textiles & garments, footwear; agroforestry processing, woodwork making; Manufacturing of food-stuffs, consumer goods; Supporting industries for oil-refining, petrochemical, shipbuilding, machinery, metallurgy...; Port construction and operation, maritime shipping services; 14

15 INVESTERMENT FIELD THAT ENJOYS COMPARATIVE ADVANTAGES IN DUNGQUAT AND ARE ESPECIALLY ENCOURAGED. Developing and operating accommodations for specialists, workers; tourism and services (hotel, restaurants, golf courses, resort, entertainment parks...); Financial, telecommunications, commercial services ; Investing and developing infrastructure of industrial parks 15

16 Dungquat Oil Refinery Plant Project Owner: PetroVietnam Investment Capital: 3 billion USD Annual capacity: 6.5 million tonnes of crude oil Schedule: operated in early 2009

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18 DOOSAN-VINA HEAVY INDUSTRY PLANT Project Owner: Doosan Heavy Industries Vietnam Co., Ltd (Doosan Vina) Investment Capital: 300 million USD Operated Products: Heavy equipments

19 Sea-ecological tourist resorts

20 GUANG LIAN STEEL VIETNAM Project Owner: E United Steel Group Investment Capital: 3,300 million USD Capacity: 5 million tones/year Schedule:

21 ADMINISTRATION & INVESTMENT PROCEDURES Dungquat EZ Authority (DEZA) has the authorized powers to process almost all the business - investment procedures in Dungquat, illustrated by: Allocating or offering for lease of land to concerned organizations and individuals Evaluating and approving Environment Impact Assessment Report or verifying E n v i r o n m e n t S t a n d a r d s C o m p l i a n c e Registration 21

22 ADMINISTRATION & INVESTMENT PROCEDURES Issuing Investment Certificates for all projects, except for the cases stipulated by the Prime Minister Issuing Commercial Representative Office License Issuing Construction Permit and other related permits Administrating ex-import activities and trading activities of enterprises operating in Dungquat Economic Zone. Issuing Certificate of Origin. 22

23 ADMINISTRATION & INVESTMENT PROCEDURES Certifying list of items and quantity of materials, raw materials, components and semi-finished products imported annually by enterprises (for the enforcement of eligible tax incentives, if any). Issuing Work permit to foreigners, overseas Vietnamese doing business and/or working in Dungquat 23

24 FEES AND CHARGES Rental price of land (compensated and availability of infrastructure up to fence of factory): US$ 40, /ha/70 years Power price: 7 cent/kwh on average Industrial water price: US$ 0.30/m3. Waste water treatment fee: US$ 0.25/m3 Worker s dormitory fee: US$ 5-6/month/person. 24

25 MASTER PLAN AND DEVELOPMENT ORIENTATION I. Land planning Now 2009 In 2010 In 2015 Total natural area (ha) Industrial land area (ha)

26 MASTER PLAN AND DEVELOPMENT ORIENTATION Land planning Now 2009 In 2010 In 2015 Total natural area (ha) Industrial land area (ha) II. Population projection Inside Dungquat s neighborhood of 100km in radius (people) Population of Dungquat s New Urbans (people)

27 MASTER PLAN AND DEVELOPMENT ORIENTATION Planning of Port of Dung Quat I Now 2009 In 2010 In 2015 Number of berth Depth level (meter) Max tonnages of receivable seagoing ships (DWT) Cargo volume via port (1000 tons/year)

28 MASTER PLAN AND DEVELOPMENT ORIENTATION Planning of Port of Dung Quat II Now 2009 In 2010 In 2015 Number of berth 10 Depth level (meter) -25 Max tonnages of receivable seagoing ships (DWT) Cargo volume via port (1000 tons/year)

29 MASTER PLAN AND DEVELOPMENT ORIENTATION Infrastructure & Facilities Planning Now 2009 In 2010 In 2015 Investment capital for infrastructure (million US$) Road development (km) Electricity supply development (MVA) Water supply plan (m3/day)

30 MASTER PLAN AND DEVELOPMENT ORIENTATION Telecommunication development (lines) Wastewater treatment capacity (m3/day) Vocational schools in Dungquat and Quangngai Province (students) Capacity at Dungquat hospital (patient beds) Worker's Dormitories capacity (persons) Resorts expansion (ha)

31 Investment procedures are simplified and in a one-stop-shop manner. 31

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