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    Vietnam's Investment Boom Is Deeply Influenced By The TPP Era.

    2015/10/31 15:19:00 52

    VietnamInvestmentTPP

    After the signing of the p Pacific Cooperation Framework Agreement (TPP), goods from Vietnam will enjoy duty-free sale to the United States and Japan.

    Foreign enterprise

    Ready to fight here.

    Many cities in Vietnam are moving forward and plan to build or expand textile and garment industrial parks.

      

    Vietnam?

    The Minister of planning and investment is expected to usher in the whole country.

    Spin

    With the upsurge of investment in clothing enterprises, he hopes that the development of industrial parks will stimulate local economic development, increase the utilization ratio of local raw materials and reduce Vietnam's trade deficit.

    At the same time, it is also emphasized that environmental standards and technical specifications should be ensured when constructing industrial parks.

    For example, Hu Zhiming recently announced that it will open 6 industrial parks with a total area of more than 2000 hectares for foreign investment.

    In addition, southern provinces such as Longan and East Nai are also preparing to build industrial parks.

    Foreign investors hope that the government can release more land to build the park for their investment and construction.

    The head of the Special Economic Zone Management Committee said that Longan has received more than 100 foreign investment applications, mainly in the fields of spinning, weaving, dyeing and finishing, and shoes.

    Related links:

    The "one belt and one way" as China's new international strategic framework has brought multiple opportunities for development to China's economy. Chinese enterprises will set off a wave of "going global" and expanding overseas investment will become an irresistible trend.

    In order to develop their own textile and garment industry, various countries along the route have formulated various preferential policies to attract foreign investment and drive the rapid development of the industry.

    As the second largest textile country after China and the key country of "one belt and one road", India has launched a number of supporting policies for textile and garment enterprises, such as capital subsidies, interest subsidies, energy subsidies, tax subsidies, training subsidies and so on.

    BIAC, a mature clothing Park in Andhra Pradesh, based on the preferential policies promulgated by the Andhra Pradesh state government in India, is also able to enjoy many preferential services provided by the park for the enterprises to help the rapid development of Chinese investment enterprises.

    Preferential tax policy is an important measure to attract foreign investment. Brandi J (BIAC) park investment enterprise can enjoy a preferential tax rate of 20% enterprise income tax for up to 15 years, while the general corporate tax rate is 33%.

    The import of raw materials and production equipment (whether old or new) can be enjoyed by the enterprise and no license is required. In addition, the park enterprises can also exempt all the local tax items such as consumption tax, service tax and value-added tax.

    In the entire textile industry value chain, any end product / semi finished product (from cotton to garments and finished products) that has been taxed in the production process can enjoy tax rebates of value added tax, central sales tax, special goods consumption tax, and the highest 100% tax rebate for eligible and fixed capital investment.

    In Brandi J's clothing city (BIAC), investment enterprises can get 20% of the fixed investment assets, and the maximum subsidy is 1 million 600 thousand dollars.

    At the same time, enterprises can enjoy more than 12.5% of the interest rate subsidy rate of regular loans, basically equivalent to interest free loans, compared with the Andhra Pradesh government introduced 2015-2020 textile and clothing preferential policies compared to more extensive.

    The Andhra Pradesh government provides a total subsidy of up to 1 billion billion rupees for independent clothing and apparel enterprises. Eligible enterprises enjoy different capital subsidies according to the type of investment and the total amount of fixed assets.

    For cotton gin, cotton spinning, weaving, printing and dyeing, processing, knitting, garments / finished products, machine blankets, mechanical embroidery enterprises and any other processing activities in the textile value chain such as curling, curling, knob, winding and finalization, the maximum annual interest allowance is 8%, providing interest subsidies of up to 7.5% for spinning and modern cotton gin, and interest subsidies will last for seven years, including two-year deferred payment or earlier repayment of loans.

    Backwardness of infrastructures and shortage of energy are important factors that impede the development of India's textile industry. But in Brandi J (BIAC) clothing city, this short board is no longer an obstacle.

    Brandi J Garment City (BIAC) has a complete and modern infrastructure, and has established a fully functional power facilities, water supply plants and sewage treatment plants. Sufficient spare capacity can fully meet the application of the park enterprises.

    In addition, the park also provides 5 years of power subsidies to the enterprises. Cotton spinning enterprises can enjoy 1 rupees / degrees of electricity subsidies, and the other clothing enterprises are subsidized to 1.5 rupees / degrees. The subsidy period starts from the date of commercial production.

    Such subsidies are the same as the policy subsidies introduced by the Andhra Pradesh government.


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