Two Samsung projects granted customs priority
Two Samsung projects granted customs priority
The Prime Minister has approved a proposal to apply a pre-investment licensing customs priority mechanism to labour- and capital-intensive enterprises, even those still under construction.
The Ministry of Finance will revise and supplement Circular No.86/2013/TT-BCT dated June 27, 2013 in line with the PM's instruction. The ministry will be allowed to apply the principle to eligible companies before the circular is amended.
The PM also agreed to grant customs priority to the Vietnam Samsung Electro-Mechanics Limited Company and the Vietnam Hansol Electronics Limited Company.
The US$1.2 billion Vietnam Samsung Electro-Mechanics project at Yen Binh I Industrial Park was designed to serve the Samsung Thai Nguyen High-Tech Complex (SEVT), which will produce mobile phones, smart phones, tablets and similar devices. It is scheduled to become operational in January.
The Vietnam Hansol Electronics Ltd. Co is an affiliate of Samsung Group. The project commenced in December 2013 at a cost of around $150 million and its investment phase is scheduled to be complete within 10 months.
Under current regulations, these companies fail to meet conditions for the priority mechanism, as they have not been operating for the required minimum of two years. However, the Prime Minister approved their exemption due to these companies' commitments as well as the global prestige of Samsung Group.
The move was also part of efforts to streamline administrative procedures and offer incentives to investors employing a large number of workers and having a significant amount of capital.
The customs priority programme for enterprises was piloted in 2011 and officially began in 2013 under the finance ministry's Circular 86/2013/TT-BTC. The scheme simplifies administrative procedures for participating enterprises, reducing the amount of paperwork they must complete as well as the number of inspections they have to undergo.
When Viet Nam signs an Agreement on Authorised Economic Operator (AEO) with other countries, the benefiting enterprises will also enjoy preferential treatments in these countries.
In addition to the two Samsung companies, 24 of the 50,000 import-export companies nationwide have been included in the customs priority programme.
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