Export firms face sales crackdown
Export firms face sales crackdown
Export processing enterprises might only be allowed to sell 10 per cent of their annual turnover in the domestic market, if a Government decree aimed to tighten up the sector comes into force.
Currently, export processing enterprises enjoyed import tax incentives on parts, equipment and value added tax, together with preferential customs procedures and no restrictions on their domestic sales.
The regulation is one of the draft amendments of the Decree 29/2008/ND-CP regulating the operation of industrial and export processing zones.
If firms' domestic sales exceeded the margin, they would be forced to transfer into other enterprise models, said director of the Ministry of Planning and Investment's Department of Economic Zone Management Vu Dai Thang.
He said a regulation whereby enterprises must export 100 per cent of their products is inflexible, however, a restriction on their domestic sales is needed.
The ministry and the General Department of Customs are currently burdened with a rafts of paperwork whenever export processing enterprises sell their products on the domestic market.
Meanwhile, director of Ha Noi Industrial Zones' Management Board Nguyen Xuan Chinh said the restriction should not be set, especially when Vietnamese support industries remain underdeveloped.
In fact, few export processing enterprises exported all of their products, he pointed out. Recently, their products were also used for production by domestic enterprises.
Another aspect of draft states new industrial zones should only be allowed to open when the occupancy rate of industrial zones in the province is more than 60 per cent, in order to prevent dispersed investments and land waste.
vietnamnews
