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| Workers assemble smartphones at the Samsung complex in the northern province of Bac Ninh. Samsung is expected to invest $1 billion to construct a plant for manufacturing screens for mobile phones and computers. — Photo ndh.vn |
HA NOI (Biz Hub) — Samsung Display Company, Ltd will construct a US$1-billion plant in the Yen Phong Industrial Zone in the northern province of Bac Ninh.
Nguyen Tien Nhuong, deputy chairman of the province's People's Committee, confirmed the report published in the Tuoi Tre (Youth) newspaper. The firm, a member company of the South Korean electronics giant Samsung Group, will manufacture screens for mobile phones and computers, he said.
The People's Committee issued an official document on preferential mechanisms to allow Samsung Display to invest in the province. The firm will pay only 10 per cent of its income tax in 30 years as it will gain revenue from tax preferential policies. Samsung Display will get tax exemption for four years and the tax amount will be reduced to 50 per cent in the subsequent nine years if the project meets the hi-tech requirements as per its commitment in the registered document.
The Vnexpress online newspaper reported that the People's Committee is expected to submit an additional tax preferential proposal to the provincial People's Council. If it is approved, the firm will get 50 per cent reduction in business income tax in the three years which follow the end of the aforementioned tax exemption and reduction.
Meanwhile, the Infrastructure Investment Development Company (INDECO) has agreed to provide clean water and a sewage disposal system as well as construct a transport system to meet the project demands. The Ministry of Industry and Trade and Vietnam Electricity (EVN) will ensure investment for infrastructure to provide electricity to the Samsung complex in the industrial zone, including Samsung Display's plant.
Samsung proposes to invest $5.7 billion in Viet Nam, with approximately $2.5 billion in Samsung Electronics Vietnam (SEV) in Bac Ninh. In 2013, the factory's export turnover was nearly $24 billion, which was equivalent to 18 per cent of the national export turnover. — VNS