VSIP Quang Ngai: A five-year journey to drive Quang Ngai forward
VSIP Quang Ngai: A five-year journey to drive Quang Ngai forward
After five years of development, VSIP Quang Ngai has become a haven for investors in the central province of Quang Ngai as well as an important driver of socioeconomic development in the province.
VSIP held its ground-breaking ceremony in Tinh Phong commune, Son Tinh sistrict of Quang Ngai province in September 2013. Covering a total area of 1,700 hectares, the park has successfully developed into a modern and green township and industrial park with complete infrastructure for local and foreign investors.
Situated in the expanded Dung Quat economic zone, VSIP Quang Ngai offers various incentives for investors. Import duties on materials, raw materials, semi-finished products which cannot be domestically made shall be exempted for the first five years of production at the project. Meanwhile, there is also import duty exemption for machines, equipment, and transportation vehicles with more than 24 seats that are imported to form fixed assets for a project.
In addition, VSIP tenants can enjoy a corporate income tax of 10 per cent for 15 years after projects become operational, a four-year corporate income tax exemption after they produce taxable income and a 50 per cent tax reduction in the nine following years.
With regards to administrative procedures, VSIP Quang Ngai provides one-stop business services to facilitate tenants with a smooth investment startup as well as helps them tackle issues relating to business, construction, resources, environment, labour and immigration.
By virtue of its strategic location, VSIP Quang Ngai is well-connected with the neighbouring areas through National Highway 1A, railways, and waterways, thereby facilitating the flow of import and export commodities. The recent launch of the Danang-Quang Ngai Expressway in September also improves traffic connectivity from the park to deep sea ports and international airports.
At present, VSIP Quang Ngai has attracted 19 tenants with a total registered capital of $382.6 million, operating in the fields of footwear, textile, food and beverage, mechanics, and furniture. Nine projects are currently operational and have created more than 6,700 jobs for local residents and experts. Once fully operational, 19 projects are projected to generate around 27,500 jobs.
Xindadong Textiles and Properwell Vietnam are among the first wholly-owned foreign companies in VSIP Quang Ngai. Xindadong Textiles is specialised in high-end knitting yarn and colour yarn and high-end denim fabrics. The products are exported to Europe, North America, and Southeast Asia. In 2017, the company achieved a total output of 16,800 tonnes and earned over VND1.131 trillion ($43.63 million) in revenue.
Meanwhile, Properwell Vietnam is a producer of women’s leather shoes. In 2017, the company recorded an output of 1 million pairs of shoes with an export turnover of $11 million and revenue of over VND420 billion ($18.06 million).
Over the past five years, VSIP Quang Ngai has been actively involved in charity and community programmes with the donation of VND2.7 billion ($309,600) for the province. VSIP Quang Ngai’s public library project has created a favourite reading space for young readers and residents from the park and nearby areas. Meanwhile, the Sembcorp-VSIP Water Initiative has provided clean water purification systems to local schoolchildren and residents in the province. At the end of 2017, VSIP Quang Ngai also offered Tet gifts as well as built 25 houses worth VND1 billion ($43,000) for disadvantaged families in the flood-affected areas to help them settle down and overcome challenges.
After 22 years since its inception in Binh Duong, VSIP has developed nine projects in six localities across the country. VSIP has become a reliable and business-friendly destination for investors, in addition to driving a value-added economic transformation in the localities.
Moreover, VSIP Quang Ngai has made significant contributions to the growth of Quang Ngai over the past five years, propelling industrial, service, and urban development, generating employment for the locals and contributing to the local budget. These achievements underscore VSIP’s long-term commitments to Quang Ngai and help the province become a modern industrial locality by 2020.
