Preferential Tax And Cheap Land: Vietnam And Other Countries Copy China'S Investment Practices

When Chinese enterprises, especially state-owned enterprises, are competing for money in all parts of the country, the United States and Japan are competing with Vietnam, India and even more Southeast Asian countries to compete for the market share of China's manufacturing industry.

Recently, one of Japan's largest shipping company, Mitsui, has invested $1 billion 200 million in Vietnam's Haiphong investment to expand its container terminal. Mitsui believes that

The report that will accelerate the pfer from China to Vietnam and other Southeast Asian countries has aroused great repercussions after being pmitted by China's official media.

This is not alarmist. Not only Japanese companies have increased investment in Vietnam, but also many Chinese manufacturing enterprises are moving their capacity to Vietnam.

A number of listed companies have found that, with the help of developed countries such as the United States and Japan, Vietnam, India and many other Southeast Asian countries are systematized by various strategies such as trade, taxation and land concessions.

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Preferential tax and cheap land: Vietnam and other countries copy China's investment practices

Vietnam's policy of "preferential" for foreign investment is quite large, and some investment policies which have been well used by local governments in China are widely used by Southeast Asian countries such as Vietnam, Indonesia and Laos.

Many Chinese enterprises began to enjoy preferential policies that they had enjoyed in the country or did not enjoy in Vietnam.

Tax preferences are regarded as "

A sharp weapon.

Liu Yonghao's new hope (000876.SZ) annual report shows that the preferential tax rate for new hope in Vietnam's Hu Zhiming is exempt from 3 years, which is reduced by 5 years. In Vietnam, Hanoi's main business income tax rate is 10%, while the local normal income tax rate is 22%. The benefit of the same tower in Vietnam is that the income tax rate is 15% (normal duty rate is 22%) within 12 years from the start of business activities.

The new tax incentives in Laos are exempt from the 5 year income tax from the year of profit.

China's cooperation with Singapore in setting up parks was also followed by Vietnam.

China shoes net reporter learned that Vietnam and Singapore established a "Vietnam Singapore Industrial Park" in the coastal defense area. The tax rate of enterprises in the park is quite favorable: the income tax is levied at 10%, less than half of the statutory tax rate. The export enterprises are exempt from the first 4 years of the year, and the tax rate is only 5% after 9 years.

China's A share listed company, 603558.SH, has set up factories in Vietnam and is investing more locally.

Motorcycle companies, which were repeatedly suppressed by the "anti lock" policy, were courteous in Vietnam.

The announcement of Zong Shen power shows that enterprises in Hanoi industrial park can enjoy the income tax policy of three years exemption and seven years reduction from the month of realization of profits.

In addition to taxes, low land prices have also become a bargaining chip for Vietnamese investment.

Tianhong textile said in its earnings report: Its Industrial Park in Guangning, Vietnam, covers an area of more than 67 thousand square meters, and the original price is only 250 yuan per square meter.

Moreover, this includes the cost to the Vietnamese local government, the cost of land acquisition and the cost of building the infrastructure on the block.

In addition to Vietnam, Southeast Asian countries such as Indonesia, Kampuchea and Laos also carry out various preferential policies.

Lu Tai, a textile enterprise, said: "Kampuchea (A) enjoys a tax exemption from enterprise income tax exemption for the 3 year starting period of +3 +1 tax exemption period".

China's manufacturing costs have risen sharply, and no profit has been pferred.

Chinese manufacturing enterprises have to go abroad to set up factories, which has a great relationship with the increase of domestic labor costs and the burden of taxes and fees.

In 2015, the absolute value of labor, depreciation, energy and manufacturing expenses in the production of shirts is rising.

Labor costs have risen dramatically.

According to the results of the report, in 2012, the proportion of manual wages in Ru Tai's shirt cost was 29.35%, climbed to 39.10% in 2015, and increased 10 percentage points in two years.

"2015 is a year of deep adjustment in China's textile industry," Baron said in its earnings report.

Domestic enterprises are facing the decline of cotton quality, the existence of excess capacity structure, low utilization of equipment, high inventory of products, difficulties in capital turnover, and the continuous rise of domestic labor costs, and many other unfavorable factors. On the international side, the textile industry in Southeast Asia has developed rapidly, and continues to seize the share of China's textile industry with its obvious advantages of low cost. "

The competition of manufacturing industry is largely the competition between cost and scale.

For the low profit clothing industry, such a sharp rise means that if it does not move, it will fall into an unprofitable situation.

Manufacturing industry accelerates to migrate China's exports

The speed of manufacturing migration to Southeast Asia is beyond imagination.

A shares listed companies in 2013 started construction in Vietnam, and last year Vietnam's spindle production capacity accounted for 40% of the company's total capacity.

According to the financial data, because it was identified as a high-tech enterprise, the company enjoyed a preferential income tax rate of 15% in the country last year, while Vietnam's tax rate was only 10%.