Samsung ups investment in northern plant
Samsung ups investment in northern plant
Samsung Electronics Viet Nam, a wholly-owned subsidiary of South Korea's Samsung Electronics, received approval from the Government to raise its investment in northern Bac Ninh Province from US$1.5 to $2.5 billion.
Nguyen Quoc Chung, director of the provincial Department of Planning and Investment, said the added capital would be invested in another plant with special incentives.
Accordingly, Samsung would continue to pay a preferential tax of 10 per cent for 30 years, with corporate income tax exemptions for the first four years and tax reductions for the next five years. The normal corporate income tax in Viet Nam is 25 per cent.
Chung told Viet Nam News that the preferential tax was approved by the Government and related ministries and agencies.
The province had not offered additional incentives for the investors, he added.
Last year, Samsung got approval to increase investment to develop its complex in the province from $670 million to $1.5 billion.
The complex has produced mobile phones, laptops and other electronic products.
Since late 2009, the plant in the province's Yen Phong industrial zone has been operating efficiently. Last year, it produced more than 100 million products with export turnover of $12.7 billion.
In the first quarter of the year, the company earned export turnover of $5.2 billion.
In March, it also began the construction of a $3.2 billion high-tech complex in the northern province of Thai Nguyen.
When completed, the area will house Samsung's largest mobile phone factory, which is expected to provide jobs for thousands of local people.
It will also contribute billions of dollars to the country's annual export turnover, while boosting the development of the electronics support industry in the northern region of Viet Nam.
Recently, six projects providing components for the complex have been licensed with capital totaling $100 million.
The South Korean Group announced last year that it would expand operations in Viet Nam and planned to spend $2.2 billion by 2020 to reduce production costs and transport fees.
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