HCM City offers business incentives to Samsung Group

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Authorities of HCM City said they were going to propose certain incentives for the USD1 billion project by Samsung Group.



Samsung Vina Company in HCM City


In June, Samsung announced that it will invest USD1 billion in the construction of an electronics production factory in HCM City. The new factory will produce televisions, DVD players, air conditioners and other electronic items for the domestic market, as well as for exportation.


A representative of Samsung said the incentives from HCM City municipal authorities would be similar to the incentives offered by Thai Nguyen Province when the group built a cellphone factory there last year.


Provincial authorities in Thai Nguyen offered four years of tax exemption and a 50% reduction of taxes for the next 12. Samsung was given a 50% reduction in land use fees in exchange for fulfilling all the positive contributions expected from a high-tech company, including technology transfer, investment in domestic research and development and a minimal environmental impact.


The first project of the company in Vietnam was Samsung Vina Company, in HCM City in 1995. In 2007, Samsung initiated a USD670 million factory in Bac Ninh Province, eventually increasing the registered capital to USD2.5 billion. After that, it invested USD3.2 billion into two factories in Thai Nguyen Province. Recently, a USD1 billion project in Bac Ninh was approved. In total, Samsung Group has invested more than USD6.7 billion in Vietnam.


A spokesperson for Samsung said the number of projects showed that the company has long-term business plans for Vietnam.




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