In recent years, foreign individuals and organisations are moving towards the Vietnam Free Trade Zone to establish manufacturing businesses and take advantage of the tax advantages for product distribution and export.
The country offers sizable industrial zones that have developed into key hubs for a variety of light to heavy industries.
VSIP (Vietnam-Singapore Industrial Park)
This is one of the best industrial parks of the highest caliber and was constructed in 1996. In six provinces in Vietnam, including Quang Ngai, Hai Duong, Nghe An, Hai Phong, Binh Dinh, and Bac Ninh, VSIP has industrial parks.
Some of the significant investment projects in VSIP include ventures in electronics, automotive components, consumer goods, and pharmaceuticals.
PHUOC DONG INDUSTRIAL PARK
This industrial park, also known as PDIP, is located between the districts of Trang Bang and Go Dau. It is regarded as one of Vietnam’s most innovative and ecologically conscious commercial and manufacturing parks.
Biofuel, steel components, logistics, support services, building materials, and textiles are among the primary investment sectors for PDIP.
Hiep Phuoc Industrial Park (HPIP)
The Nha Be District of Ho Chi Minh City is where this industrial park is situated. HPIP is an industrial property with ready-built facilities covering over 4,000 hectares. Export operations are prospering in this industrial area due to its proximity to Ho Chi Minh City, Vietnam’s financial hub, and its well-developed transportation infrastructure.
Dinh Vu – Cat Hai Economic Zone
This is an important coastal free zone in Vietnam. It is a 22,540 hectares industrial zone and is ideally located in Hai Phong. Machinery, electronics, communications, chemical, scientific, and electrical equipment are the key industries in this free zone.
Hoa Khanh Industrial Zone ( HKIZ )
The Hoa Khanh Industrial Zone was built in 1997 and is situated in the central key economic zone of Da Nang, Vietnam.
It has a strong infrastructure that includes factories, warehouses, labour force, utilities, and more.
With its established transportation system, which includes close proximity to the Da Nang International Airport, the North South Railway, and the Tien sa and Han River Ports, it is very well connected to the rest of the world.
All fixed assets and other materials needed to maintain the machinery and are used to produce products and services are now exempt from taxation, according to the authorities.
Businesses are given a two-year tax holiday from paying corporate income taxes as well as a three-year tax rate reduction.
Companies can be launched in several of the zone’s major businesses, including the petrochemical industry, garment industry, and agricultural sectors.