An exclusive privilege drafted on offer to foreign investors in Phu Quoc

By Thac Minh - Aug 17, 2017 | 11:38 AM GMT+7

TheLEADERForeign investors to be granted permanent residence cards is one of proposals just submitted to the Government to aim at attracting investment capital, foreign talented business people and high-profile experts to Phu Quoc special economic zone in the future.

An exclusive privilege drafted on offer to foreign investors in Phu Quoc
Bai Khem, Phu Quoc. (Photo: Internet)

The Ministry of Planning and Investment (MPI) included this in the draft law for special economic – administrative zones, which has been recently sent to the Government for consideration.

Previously, the agency proposed numerous privileges such as income tax exemption for five years (by 2030) for individuals with incomes generated in special zones. In the next years, the personal income tax will be reduced by 50%.

For managers, scientists and experts with high qualifications and income which have to pay personal income tax in the three mentioned special economic zones; they are also entitled to tax exemption until the end of 2030 and tax reduction by 50% in the next years.

According to MPI, Phu Quoc will be prioritised to become a centre for international trade and high-quality services.

Also, this will be the only zone to be prioritised for the development of the processing industries and logistics services for the fishery, which are the specific industries that Van Don and Van Phong Special Economic Zones are not prioritised.

According to MPI, Phu Quoc Island can ultimately develop into a commercial centre, even it is far away from the mainland and can only go there by air and sea.

Also, the Ministry affirmed that Phu Quoc is still gifted with the fertile agricultural land. The area of forest land is significant, accounting for 63.2% of the total natural land area, which is favourable for the development of the agricultural economy and sustainable eco-tourism development.

Regarding the infrastructure, MPI explained: "The infrastructure of Phu Quoc has been invested entirely synchronously to meet the development needs. Many high-end, large-scale resorts have come into operation. The Politburo has also allowed Vietnamese people to pilot the casinos. "

Apart from enjoying the general privileges for special zones, Phu Quoc also develops a particular mechanism such as raising by from 30% to 50% of the base salary for cadres, civil servants and employees working in Phu Quoc special zone.

In particular, to encourage investment, the special zone government will issue permanent residence cards to foreign investors whose investment projects worth at least US$5 million, and they have stayed in Phu Quoc for at least five years and have not violated the law in that period.

Similarly, Van Don (Quang Ninh) will be prioritised for the development of eco-tourism, innovative industries and hi-tech agriculture. Besides, Van Phong (Khanh Hoa) with the favourable location will promote the development of deep-water ports, logistics services and high-quality health and resort services.