Fedex keen on Chu Lai (Vietnam) open economic zone
American express service firm FedEx may establish an international air transport center in Chu Lai Open Economic Zone in the central province of Quang Nam.
Speaking at a conference held in HCMC yesterday to announce the Government’s decision on establishment of the country’s first such zone, the provincial government said it would work with FedEx over the project soon.”I have met FedEx representatives and found that the corporation has shown keen interest in building such a center for Asia,” provincial Chairman Nguyen Xuan Phuc told the conference organized by the province and Thoi Bao Kinh Te Sai Gon of the Saigon Times Group.
He said the province would write to FedEx leaders next week inviting them to Vietnam.
Several years ago, Quang Nam and FedEx representatives met three times to discuss the project, which was envisioned developing the center at the zone adjacent to Chu Lai Airport, providing air freight service for regional countries.
The project became deadlocked as the trading field, at that time, was not opened up to foreign companies.
The Government’s new rules on operations of the zone dated June 5, 2003 pave the way for investors to get involved in all production, trading and service fields, including transport, banking, insurance, post, telecoms, recreation and real estate, said provincial Vice Chairman Tran Minh Ca.
However, hindrances involving aviation rights remain due to the absence of a Vietnam-U.S. aviation pact but this will soon be resolved as the two countries are in talks over the agreement. Latest negotiations took place in the U.S. on June 18.
Ca said investors could enjoy the most incentive investment policy, such as a 10% corporate income tax (compared to the 28% outside the zone) in the first eight years and a 50% reduction in the following nine years as well as exemptions from profit repatriation.
Foreigners at the zone will pay personal income tax only when their monthly income exceeds VND24 million compared to the VND8 million outside the zone.
Another incentive is that investors will be exempted from rent for land with sufficient infrastructure and infrastructure service charges in the industrial park and non-customs territory of the zone until end-2015. A land lease contract is valid for 70 years.
Foreign investors there will be entitled to the same land rent and goods and service charges as locals.
Foreigners, overseas Vietnamese and their family members will be granted multiple visas with terms suitable for their work and investment in Chu Lai. Foreigners with permanent residence permits and foreign investors can purchase houses in the zone.
Chu Lai, which is adjacent to Dung Quat Industrial Park in neighboring Quang Ngai Province and 80km south of Danang Airport in Danang, is divided into two main territories: customs and non-customs.
The zone is 845km north of HCMC and covers some 400 square kilometers.
Civil Aviation Authority of Vietnam will start upgrade work on Chu Lai Airport next month to serve the economic development in Chu Lai and neighboring areas, said Vice Chairman Ca.
Copyright 2003. All Rights Reserved.
