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| A corner of railway station in Ha Noi. The Government will provide the coach project developers with cut of interest rate when they take loans from banks. — Photo The Duan |
HA NOI (Biz Hub) — Developers can receive subsidies of at least 20 percent of the interest rate when taking loans from banks to develop, upgrade or expand coach stations.
This is part of the incentives that the Prime Minister has approved to attract the private sector towards coach station projects.
The Prime Minister assigned the People's Committees of cities and provinces directly under the central government, including Hanoi and Ho Chi Minh City, to make development plans for coach station networks and to invite investors.
The investors will also be exempted from paying land rents for areas used to build compulsory structures such as platforms, waiting rooms, ticket offices and green spaces.
Investors of station projects in disadvantaged districts will be exempted from paying land rent for the whole station area.
They will also enjoy corporate income tax of 10 percent for 15 years on the income generated from operating the coach station.
The rate is half of that imposed on other areas.
The corporate income tax, reduced from 25 to 22 percent last year, is expected to drop to 20 percent next year. Small and medium-sized businesses have enjoyed a 20 percent rate since the second half of 2013.
At a recent meeting with the Hanoi People's Committee, Transport Minister Dinh La Thang said the private sector could help improve the quality of transport services and suggested the city should privatise all its coach stations.
General Director of the Directorate for Roads of Vietnam Nguyen Van Huyen said transparent bidding in transport projects will attract competent investors who would use investment effectively and improve service delivery. — VNA/VNS