1. Introduction of Hon La Economic Zone

Hon La economic zone is founded pursuant to the Decision No.79/2008/QĐ-TTg dated June 10th 2008 by the Prime Minister. It includes 6 coastal communes in Quang Trach district. The center of the economic park is in the 2 communes: Quang Dong and Quang Phu.

Hon La economic zone is 10.000ha 1arge out of which 8.900 ha is in mainland and 1.100 ha is in islands. It borders Ha Tinh province in the North, Quang Tho commune, Quang Trach district in the South, Quang Tien anđ Quang Chau in Quang Trach district in the West and the sea in the East.

Hon La economic zone is a general economic area. There are 2 main complexes: taxed area and free-tax area.
Taxed area includes: industrial areas, port, port logistic service, residency area, tourist and service area, administrative area and so on. There are also supplementary industries, business and areas, technical infrastructure area and other economic sectors.

Construction and business in free tax area is closely linked with investment and the effective operation of Hon La port which together with the National Highway 1A, 12A and the international border checkpoints as Cha Lo, Cau Treo, Lao Bao form important gateway to the sea for areas in Laos PDR, North-Eastern Thailand and GMS countries.

Hon La port: Phase I will be completed for ships of 10.000 DWT

II. Investment incentives in Hon La Economic Zone:

Land:

Apply one-price policy for services, products and land rent in the economic zone for organizations, individuals without any difference between domestic and foreign ones who have manufacturing and business activities in the economic zone.

Land rent period is 50 years. Area for rent is according to the actual demand of each project.

Exemption of land rent is 15 years since the project is completed and put into operation.

Tax:

The rate of enterprise income tax is 10% for 15 years since the enterprise operates and gets revenue from activities of preferential tax. Being exempted from tax for 4 years since there is income which must pay tax and getting the tax reduction of 50% for the next 9 years.

Being exempted from import tax for 5 years since the beginning date of project for the goods as materials, components and semi-finished products which cannot be manufactured in our country and must be imported to manufacture in economic zone;

Getting income tax reduction of 50% for those whose income is in the range of income tax;

High-tech projects meet the current regulations; projects in the special preferential list of attracting investment and having great socio- economic impacts. These projects endure enterprise income tax rate of 10% during the project cycle.

Other preferential policies:

There is available investment in essential infrastructures as electricity, water supply, road to the fence of functional areas in the economic zone;

Support site preparation;

Support training cost for local employees who are first recruited.