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New FDI rules set liberal terms, offer incentives (ST - 31.03.2003)

A new Government decree guiding the implementation of the Law on Foreign Investment offers good incentives, ranging from less binding exports to more liberal categorization of ownership for project owners.

Under Decree 27/2003/ND-CP issued last week, foreign-invested manufacturers in industrial parks will be entitled to the preferential corporate income tax rate of 15% without having to export more than half of their output as required by the old regulations.

The new decree replaces Decree 24/2000/ND-CP to make the investment environment more attractive as promised by the Government.

Regarding the classification of ownership, the new legislation gives wholly foreign-owned business status to those concerns established as joint ventures between a 100% foreign-owned enterprise in Vietnam and one or more foreign-invested enterprises. The old decree only grants such recognition to those entities with 100% of foreign capital.

Article 36 of the new decree clarifies foreign-owned enterprises will have their licenses revoked if the project is not executed after a deadline of six months since investors receive licenses or a permit for rescheduled operation.

For those wholly foreign-owned enterprises wishing to undergo separation, merger or ownership restructure, only a decision from the investor is required, rather than a resolution from the board of directors as required for foreign-invested joint ventures.

Symposium on Wastewater Treatment (BBD - 21.02.2003)

Representatives of thirty enterprises and authorities from Binh Dinh attended a symposium on wastewater treatment held in Quy Nhon on 18.02.2003. On the symposium solutions and systems for waste water treatment of food processing industries (sugar, dairy, beer) and wood processing industries. Besides new techniques for remote measurement were shown.

The symposium was organized by VIET-EURO-Consulting in cooperation with the Management Board of Industrial Zones in Binh Dinh, the Department of Science, Technology and Environment Binh Dinh and the Center for Investment, Trade Promotion and External Relation Binh Dinh.

Largest infrastructure development project started (BBD - 6.11.2002)

On 6.11.2002 the construction works for one of the largest infrastructure projects in Binh Dinh province started. The project will develop Nhon Hoi peninsula and includes a 2.5 Km long bridge, an industrial zone as well as residential and business areas.