Documentos de Académico
Documentos de Profesional
Documentos de Cultura
VIETNAM MANUFACTURING
SUPPORTING INDUSTRY
YEARBOOK
2016-2017
This document has been produced with the financial assistance of the
European Union.
The contents of this document are the sole responsibility of the authors and
can under no circumstances be regarded as reflecting the position of the
European Union.
TABLE OF CONTENTS
1. FOREWORD 4
2. BUSINESS DIRECTORY
Pham Hai Phong, Nguyen Thi Hanh, and Pham Ngoc Bich
* Metal Processing sector 6
* Electronics and Electrics sector 121
* Plastic and Rubber sector 136
FOREWORD
Dear reader,
I am delighted to present our Annual Yearbook for 2016-2017 on
Manufacturing Supporting Industries. Our 161 Vietnamese enterprises
this year consist of three sectors: metal processing, electronics-
electrics, and plastic-rubber. They are among the best companies who
are providing products to assemblers in Vietnam and to export market.
We are pleased to announce that policies relating to the supporting
industries in Vietnam have recently been updated that you may find sectors
becoming prioritized industries. Therefore, in this annual Yearbook we
provide additional report on the import and export performance of
metal, electronics and plastic parts and components from 2010 to 2014.
Lastly, if you are not already aware of, this publication is part of the
project Vietnam Supporting Industries to Europe, which is sponsored
by the European Union from 2014 to 2017, and implemented under the
framework of the European Trade Policy and Investment Support Project
(EU-MUTRAP). For more details as well as for detailed activities of the
project, please do not hesitate to contact SIDEC Supporting Industry
Enterprises Development Center. We welcome your communication.
For your convenience, an online version of this Yearbook is also available
on the website: www.vietnam-manufacturing.com
We hope you enjoy reading this Yearbook and find it useful.
Sincerely,
some of who are considered as a casting machine (15 units); Pressing machine
worldly recognized corporations. (65-1000 tons) (11 units); CNC machine (120
Our customer support can units)
respond to English inquires. Main customers: Landmann; IKEA;
7.
ACCURACY JSC.
Mr. Loc Le
Director
+84-909 889 888
avl@anvietlong.com
10 - METAL PROCESSING
AN MI TOOLS CO.,LTD
Vietnam with total area of 3.2 hecta. Standards: ISO 9001: 2008; ISO
We specialise in manufacturing injection 14001:2004
molding and hi-tech electronics plastic Main products: Precision injection mold;
parts such as printer parts, mobile
Injection plastic parts
parts, electronics parts with modern
Main technology and equipments:
machines of leading brand name
Injection Molding Machine 60-360T (35
in Japan, Swiss, Taiwan as: Makino,
units); Zoller Presetter (1 unit); Vision
Okamoto, Mitutoyo, Toshiba, Zeiss
Measuring Machine (1 unit); Cordinate
Our customers are mostly Japanese
and Korean reputed companies such as measuring machine (1 unit); Vertical
Canon Vietnam, Muto Hanoi, Panasonic Machining Center (3 units); CNC lathe
Vietnam, Samsung Vietnam, Hanoi machine (1 unit); etc
Seowon Intech, Korg Vietnam, Foster Main customers: Canon Vietnam; Toho
Vietnam With the commitment in Vietnam; Muto; Nippon Seiky; ABCD;
providing environmentally and high Kyocera; Brother; Korg Vietnam; Panasonic;
quality products to our customers, Hanoi Seowon Intech; Estec Phu Tho Co.ltd
we have set up an efficient quality & Export experience: Japan, Korea
environment management system ISO
9001:2008 and ISO 14001:2004.
CO DO JSC.
INDUSTRIAL MECHANICS
AND AUTOMATION CO.LTD
INNOTEK JSC.
295 Cho Lon St., Ward 11, Dist. 6, Ho Chi Minh city
Tel: +84-8- 37 555 458 Fax: +84- 8- 37 555 459
www.lequantech.com
lpvhung@yahoo.com.vn
Mr. Le Tuan
Director
+84- 903 259 228
letuan@legroup.com.vn
Ms. Le Thi Ngoc Lan
Vice Director
+84-904 890 028
lan@legroup.com.vn
56 - METAL PROCESSING
Pham Ngu Lao St., Hoa Xa I.Z., Nam Dinh city, Nam
Dinh
Tel: +84-350-3 671 811 Fax: +84-350-3 861 550
www.madaexport.eu
madavnexport@gmail.com
MEINFA JSC.
Mr. Do Sy Toan
Managing Director
+84-938 382 277
dosytoan@midamold.com
Mr. Trinh Hoai Sang
R&D Manager
+84-932 719 922
info@midamold.com
61 - METAL PROCESSING
parts; Construction parts with Standards: ISO 9001: 2008; ISO 14001:
highly-skilled employees, modern 2004; ISO/TS 16949
equipment and machinery of Main products: Ball Bearings; Motorbike
which products branch always parts; Construction parts
satisfy its customers needs Main technology and equipments:
in terms of quality, price and Forging and Pressing Machine ( 130 units);
delivery service as well as after- Milling machine (50 units); Drilling machine
sale services. The distribution (45 units); Grinding machine (150 units);
channels of company have been Lathe machine (270 units)
developed in all the country but Main customers: Honda; Daiwa; Hilex;
we also focus on exporting. Nippo; Showa; Suzuki; Exedy; Stanley;
With the companys strategy Panasonic; Ulvac
known as Quality beyond Export experience: Germany; Japan;
expectations, power and ASEAN
durability to customers,
FOMECO has always tried to
offer perfect servicer, best
quality and economical products
to its customers. FOMECO
is going to become a leading
supplier of ball bearings and
mechanical products in Vietnam.
FOLIN CO.,LTD
PRODETECH JSC.
QT MANUFACTURING CO.,LTD
MECHANICAL ENGINEERING
AND METALLURGY JSC.
2nd road, Bien Hoa I.Z., Bien Hoa city, Dong Nai
Tel: +84- 613-836 170 Fax: +84- 613-836 774
www.sadakim.vn
sadakim@hcm.vnn.vn
xuansonsdk@yahoo.com.vn
Mr. Mai Van Thanh
Business Manager
+84-918 411 625
thanhsdk@yahoo.com.vn
78 - METAL PROCESSING
STM CO.,LTD
Thanh Phu- Thien Tan I.Z., Vinh Cuu Dist., Dong Nai
Tel: +84-61-3 865 659 Fax: +84-61-3 865 659
casting-tht.com
thtcasting.vn@gmail.com
TECHNOKOM JSC.
38mm)
technical and qualified team that assured
Main technology and equipments:
each of our products is built to the highest
CNC Swiss Type Automatic Screw
quality with competitive price and On
Machine (1); Swiss Type Automatic
time delivery..
Screw Machine (29)
We can make small diameter parts (from
0.5 - 38mm by Swiss Automatic Lathes Main customers: Namilux, East West
and from 0.5 - 20mm by CNC Machines) Industries, Fujikura Fiber Optics
attained high precise tolerance (0.01mm Export experience: Japan, ASEAN,
for Swiss Automatic Lathes and 0.005mm USA, EU
for CNC machines) with quality from 100
to millions from many types of materials:
Brass, Alumium, Stheel, Stainless Steel,
Titan, POM...
Our Products are used in many high
tech sectors, including Aerospace,
Defense, Medical equipments,
Automobiles, Motorcycles, Electronics,
Telecommunications, Optical equipments,
micro-mechanics, Household
equipments,and other industries.
TTSV JSC.
VF DECOLLETAGE CO.,LTD
Lot 11, Tan Thoi Hiep I.Z, Hiep Thanh ward, Dist 12,
Hochiminh city
Tel: +84-8-37 175 001 Fax: +84-8-37 175 278
www.vfdecolletage.com
info@vfdecolletage.com
Ms. Huong
Sales
+84-904 542 488
viwelco@fpt.vn
Mr. Thang
Sales
+84-969 322 456
viwelco@fpt.vn
104 - METAL PROCESSING
VF DECOLLETAGE CO.,LTD
VIETNAM-HUNGARY ELECTRICAL
MACHINERY MANUFACTURING JSC.
Lot B4, Thuy Van I.Z., Viet Tri city, Phu Tho
Tel: +84-210-3 991 002 Fax: +84-210-3 992 555
www.vinacasting.vn
vinacasting@gmail.com
VINAMOLD JSC.
VINAMETAL CO,.LTD
3C ENGINEERING CO.,LTD
4P COMPANY
Lot 16, Khac Niem I.Z., Khac Niem, Bac Ninh city.
Tel: +84-241-6 286 855 Fax: +84-241-3 717 342
asiakinhbac.vn
saleskinhbac@gmail.com
Lot 3, TS8 St., Tien Son I.Z., Tien Du Dist., Bac Ninh
Tel: +84- 241-3 734 005 Fax: +84- 241-3 734 036
VIET AN JSC.
Our main products are high- tech Standards: ISO 9001:2008; ISO
plastic products such as mobile 14001:2004
phone accessories, sewing Main products: plastic components for
machine parts, medical plastic mobile, sewing machine, furniture; medical
boxThe company has the plastics box
system of modern machinery Main technologies & equipments: Injection
and skilled labour to meet all machine (35 units)
requirements from customers Main customers: Panasonic; Jaguar; Fami
in terms of quality, technique
and management standards.
We always aim to perform and
provide exceed our customers
expectations.
CATHACO., LTD
DAI AN CO.,LTD
ECOTEK CO.,LTD
SHENGLI VN sit@shenglivietnam.com
Email:
SUNPLA JSC.
Lot E1, E2 Dinh Tram I.Z., Viet Yen Dist., Bac Giang
Tel: +84-240-3 662 288 Fax: +84-240-3 662 266
www.sunpla.com.vn
sunpla@sunpla.com.vn
machine) with 02 Plating line- Metter; Grill Front; Winker; Rim Tailight
plating on plastic, platting on Main technology and equipments:
6.
SUPPORTING
INDUSTRY
POLICIES
168
DECREE
ON DEVELOPMENT OF SUPPORTING INDUSTRY
Pursuant to Law on Organization dated December 25 2001;
Pursuant to Law on Investment dated November 26 2014;
Pursuant to Law on high technology dated November 13 2008;
Pursuant to Law on Import Export Duties dated June 14 2005;
Pursuant to Law on Corporate Income Tax dated June 03 2008; law on amending and
supplementing a number of articles of Law on Corporate Income tax dated June 19 2013;
Pursuant to Law on Value-Added Tax dated June 03 2008; law on amending and
supplementing a number of articles of Law on Value-Added Tax dated June 19 2013;
Pursuant to Law on Tax Administration dated June 03 2008; law on amending and
supplementing a number of articles of Law on Tax Administration dated June 19 2013;
Pursuant to Law No. 71/2014/QH13 dated November 26 2014 amending and
supplementing a number of articles of Law on Taxation;
Pursuant to Land Law November 29 2013;
Pursuant to Law on State Budget dated December 16 2002;
Upon the request of Ministry of Trade and Industry,
Government passes a Decree on development of supporting industry.
Chapter I
GENERAL PROVISIONS
Article 1. Scope
This Decree regulates assistance policies and incentives to development of
supporting industry.
Article 2. Regulated Entities
Individuals, Organizations engage in development of supporting industry in Vietnam.
Article 3. Interpretation
In this Decree, the following terminologies are interpreted as below:
1. Supporting industry means the industry that involves manufacturing materials,
accessories, components and spare parts used for assembling finished goods.
2. Supporting industry projects are such investment projects in Vietnam for
manufacturing supporting products (hereinafter referred to as supporting products).
170
The list of prioritized supporting products (hereinafter referred to as the List) includes
those specified in the Annex of this Decree and will be adjusted according to the
socio-economic development situation in each periods.
4. Supporting industry activities consist of assistance from regulatory bodies,
organizations, individuals in supporting industry, international cooperation, human
resource training, research and development, assistance in technology transfer,
market expansion; investment in supporting product manufacturing; supporting
industrial services.
5. Supporting Industry Development Program is a set of contents, promotion
activities, assistance activities in supporting industry development in order to
promote to manufacture supporting industrial products.
Chapter II
POLICIES ON ASSISTANCE IN DEVELOPMENT OF SUPPORTING INDUSTRY
Article 4. Research and Development
1. Organizations and individuals participating in the field of research and
development of supporting products on the List shall be received assistance in
the following manner: a) Sponsorship from the Supporting Industry Development
Program, Aid from Funds and other funding sources for research and development
and training; Provision of partial funding for research and development from the
Supporting Industry Development Program, provided that the results of which may
be effectively applied; c) Maximum provision of up to 50% funding from the State for
projects of trial supporting industrial production.
2. Projects for construction of development and research of supporting production
facilities shall receive land given or lease out by the State as stipulated in regulations
of law on land; fund for up to 50% of the investment in the research equipment and
facilities from the Supporting Industry Development Program.
Article 5. Application and Transfer
1. Organizations and individuals transferring the technology related to manufacturing
supporting products on the List shall benefit from technology transfer and other
benefits as per the current regulations.
2. Application and transfer of technology in supporting industrial production on the
List shall be received assistance from the supporting industry development program
as follows:
a) Projects on cooperation between producers and technology Owners shall receive
partial funding;
The fabrication of trial supporting products on the List shall be received up to 50%
funding.
3. Technology transfer related to material production projects using over 85% of materials from
mineral processing including metal ore, non-metal ore and petrochemical products used for
manufacturing supporting industrial products shall receive up to 75% funding from the State.
171
Article 6. Human Resource Development
1. Human training for supporting industry:
a) Supporting products manufacturing projects under the List shall be funded for
human training from the Supporting Industry Development Program.
b) Individuals who directly perform duties of the Supporting Industry Development
Program shall be provided with advanced training in both Vietnam and abroad under
the State training programs.
2. Training Institutions for supporting industry:
a) Organizations, investors and joint venture corporations are encouraged by the
State to establish training Institutions directly serving in production of supporting
products.
b) Training institutions serving in manufacturing supporting products shall be received
aid/assistance assisted from Science and Technology Fund, Training Fund and others;
c) Universities, Research Institutes, existing training institutions are encouraged to
provide about force in the supporting industry with advanced training.
Article 7. International Cooperation in supporting industry
1. Promote international cooperation in the supporting industry, especially among
nations, territories, entities, multinational groups, foreign groups with advanced
science and technology to attract investors and to create bond among organizations
and individuals operating in the supporting industry both in Vietnam and overseas.
2. Promote searching and advanced technology transfer activities to Vietnam in order
to enhance the capacity of domestic supporting industry enterprises.
3. Boost international cooperation in human development serving in supporting
industry, give priority to train students majored in supporting industry related fields
at universities, colleges and vocational schools in local region and all over the world;
attract and employ high-qualified workers and talent young generations in the field of
researching and teaching supporting industry in Vietnam.
Article 8. Assistance in market expansion
Supporting products under the List shall:
1. Be given priority to participate in national trade promotion program.
2. Receive partial funding for trademark registration, participation in domestic and
oversea fairs/ exhibitions, market access and service charges from the Supporting
Industry Development Program.
Article 9. Supporting Industry Development Center
1. Supporting industry development center is founded on the basis of rearrangement
of the existing units of ministry of trade and industry in order to carry out the
following duties:
a) Carry out technology transfer and application, support manufacturing of trial
supporting products under the List;
172
b) Assist enterprises in setting up a production management system to suit the
international standards;
c) Provide employees with advanced training in the area of technical management in
supporting industry;
d) Carry out trade promotion; organize fairs/exhibitions;
) Promote both domestic and foreign investment to boost the development of
supporting industry.
2. An supporting industry development center shall only be established when all of
the following conditions are satisfied:
a) Infrastructures, equipment for testing and manufacturing trial supporting products
and the professional management team to meet the requirements of supporting
industry development.
b) There are consultants in the fields of technology, intellectual property and business
management related to supporting industry;
c) There are possibilities of associating with domestic and foreign manufacturers,
research and training centers to serve in supporting industry.
Article 10. Supporting Industry Development Program
1. Objective:
Support individuals, organizations in improving their competence in development of
supporting industry.
2. Contents:
a) Assist in improving enterprise competence: business administration, production
management, connect supporting industrial product manufacturers with customers,
supply products to multinational groups and other domestic and foreign supporting
industrial manufacturers; promote consuming market;
b) Support in training labor force to meet the needs of supporting industrial
production;
c) Assist in research and development, technology application and transfer and
renovation in trail manufacturing of components, accessories and materials;
Disseminate knowledge and information on policies, market and Vietnams supporting
industry capability through various forms such as workshops, news, publications and
advertisements posted on other mass media;
Promote international cooperation and attract foreign investment in the supporting
industry;
Assist in setting up technical standards and specifications of supporting products on
the List to comply with the international and regional standards;
Create and update the database of domestic and foreign supporting industries on a
dedicated supporting industry web portal.
173
3. Funding:
a) Funding for the execution of the Supporting Industry Development Program:
- Funding from the State according to the applicable regulations;
- Funding from entities for carrying out the development of supporting industry;
- Sponsorships and contributions from domestic and foreign individuals and
organizations;
- Other lawful sources of capital regulated in Vietnam Law.
b) Planning and Estimation:
- The Ministry of Trade and Industry makes and aggregates estimates of funding
for supporting industry into its combined annual budget and submits to Ministry of
Finance, Ministry of Planning and Investment and other relevant agencies;
- Peoples Committees of provinces and central affiliated cities (hereinafter refer
to as provinces) shall make and aggregate the estimation of funding for supporting
industry into the local annual budget estimate and submit it to competent authorities
to approve.
4. The Prime Minister shall promulgate specific regulations on the development,
management and execution of the Supporting Industry Development Program.
Chapter III
INCENTIVE POLICIES ON THE SUPPORTING INDUSTRY
Article 11. Subjects of incentives and procedures for certification of incentives
1. Subjects
Projects for manufacturing supporting products under the List includes new
investment projects, technology development and renovation projects, new
production processes and new production projects with the increase in productivity
by at least 20%.
2. Procedure for certification of incentives:
a) The small and medium-sized enterprises shall submit the application for
certification of incentives for their projects for manufacturing supporting products
to local competent authorities where these projects are located or to the Ministry of
Trade and Industry. The local competent authorities send the Decision of certification
of incentives to the Ministry of Trade and Industry;
b) Entities that are not mentioned above shall submit their application for certification
of incentives to the Ministry of Trade and Industry.
3. Time limit of certification of incentives
In consideration of the application for incentive certification, the certifying agency
shall inform the applicant of the result of the incentive certification within 30 working
days;
174
b) If the application fails to meet the conditions of certification, the certifying agency
shall inform the applicant to submit the complete application in writing within 05
working days from the date of receiving the application; the certifying agency shall
inform the result of the incentive certification within 30 working days from the date
of receipt of the complete dossier.
4. Post-verification:
The projects for manufacturing supporting products on the List, which are not eligible
for incentives shall have incentive withdrawn and compensation shall be paid for the
incentives.
5. The Ministry of Trade and Industry shall specify the application for incentives and
procedure for post verification.
Article 12. Incentive policies for supporting industrial production projects under the
List
1. Common Incentive policies:
a) Corporate income tax:
a) Tax incentives under Law No. 71/2014/QH13 amending and supplementing a
number of articles of Law on Taxation dated June 26 2013.
b) Import Duties:
Imported commodities that are imported to create fixed assets shall be exempted
from import duties as stipulated in Law on Import Export Duties and its
instructional documents.
c) Credit:
- Supporting industrial production projects under the List shall be granted loans at
investment credit rate from the source of investment credit of the State.
- Supporting industrial production projects under the List shall be granted short-term
loans in VND by credit institutions and branches of foreign banks at the interest rate
not exceeding the maximum interest rate regulated by the State Bank at that time.
d) Value-added tax:
Value-Added Tax of revenue from supporting products on the List may be declared
monthly, quarterly or yearly. The Ministry of Finance shall provide detailed guidelines
on this point.
) Environmental protection:
Supporting industrial production projects under the List shall take loans at the
concessional rate from Vietnam Environmental Protection Fund for pollution
treatment and environmental protection items of the projects.
2. Incentives for small and medium-sized enterprises:
Besides these common incentives stipulated in Clause 1 of this Article, small and
medium-sized enterprises manufacturing supporting products under the List are also
entitle to the following incentives:
175
a) Investment credit:
These small and medium-sized enterprises may take loans of up to 70% its
investment on the basis of guarantee provided by the organization permitted to
guarantee for SMEs if it meet all of the following conditions:
The total value of mortgage or pledge to the credit organization, excluding mortgage
or pledges for other kinds of loans, is at least 15% of the loan; Owners equity
capitalized in the project is at least 20%, after deducting equity invested in other
projects;
At the time of request for guarantee, there are no outstanding liabilities to the state
budget, bad debts to credit institutions or other economic organizations.
b) Water surface/land rents:
- Exempted or reduced land/water space rent as stipulated in Land Law;
-With regard to special or large-scale projectswhich may have significant socio-
economic effectiveness and need greater incentives, the Ministry of Finance shall
cooperate with the Ministry of Planning and Investment to make a decision on the
basis of the proposal of the Peoples Committee of the province where the projects
are located in accordance with regulations of law on land.
3. Besides the common incentives prescribed in Clause 1 of this article, projects
in manufacturing supporting products on the List located in disadvantageous
or extremely disadvantageous areas shall benefit from region-based investment
incentives.
Article 13. Incentive policy management
1. Where the information provided by entity under incentives specified in this Decree
is found untrue and take the advantage of incentives with wrong purposes, the
incentives shall be withdrawn.
2. In the case that an entity is entitle to various level of the same incentives, the
highest level shall be applied.
3. Ministries, Departments and Peoples Committees of provinces shall be responsible
for directing incentive examination, inspection and revocation.
Chapter IV
IMPLEMENTATION ORGANIZATION
Articles 14. Responsibilities of Ministries and Departments
1. The Department of Trade and Industry shall take charge of the management on
supporting industry development according to the following tasks:
a) Formulate and submit plan estimation to competent authorities passing legal
normative documents on supporting industry development.
b) Take charge of developing plan and prepare plan estimation for the Supporting
Industry Development Program and aggregate estimated budget into the 5-year
socio-economic development plan and annual socio-economic development plan of
176
the Ministry of Trade and Industry.
c) Review, update the List in accordance with the reality in each period and submit it
to Government for approval;
d) Develop and submit to the Prime Minister for approval; set up, manage and
execute the Supporting Industry Development Program;
) Approve the existing units rearrangement scheme of the Ministry of Trade and
Industry to found Supporting Industry Development Centers;
Take charge of and cooperate with the Ministry of Science and Technology to
establish and pass the national technical standards, set up and announce the basic
standards on material, raw material, components and parts; develop the national
standards on raw material, material, components and parts in accordance with
international standards and propose the Ministry of Science and Technology for
issuance;
g) Take charge of and cooperate with Ministries, Departments and local authorities to
direct and handle with concerns related to the development of supporting industry;
h) Cooperate with domestic and foreign organizations and individuals to mobilize
capital, attract investors and other sources of funding for the development of
supporting industry.
i) Direct to conduct the incentive certification and post-verification procedure;
k) Take charge of and cooperate with the Ministry of Finance to develop Joint Circular
providing guidance on budget estimation, management and expense for the Program
of Supporting Industry Development;
l) Take charge of and cooperate with Ministries, Departments and Peoples
Committees of province in examination, inspection and withdrawal of incentives.
2. Responsibilities of the Ministry of Finance:
a) Take charge of drawing up the budget for the Supporting Industry Development
Program as per Law on State Budget, direct to draw up estimation and manage
spending of The Supporting Industry Development Program.
b) Issue detailed guidelines on tax incentives for the development of supporting
products within its jurisdiction;
c) Instruct or issue the policy to entities eligible for loan from State investment credit,
within its jurisdiction, to ensure a simple and transparent procedure and facilitate the
execution of loan procedure of Vietnam Development Bank.
d) Corporate with the Ministry of Trade and Industry in funding estimation and
management of the Program of Supporting Industry Development;
) Take charge of in instructing the value-added tax declaration promulgated in Point
d, Clause 1, Article 12 of this Decree.
177
3. Responsibilities of the State Bank of Vietnam:
a) Cooperate with the Ministry of Finance and Ministry Of Trade and Industry to
release detailed guidelines on the implementation of credit policies prescribed in
Article 12 of this Decree to ensure a simple procedure and loan security;
b) Cooperate with the Ministries, Departments and local authorities to instruct and
supervise the implementation of these credit policies, handle with arising problems
and propose solutions during the period of implementation.
4. Responsibilities of the Ministry of Planning and Investment:
a) Take charge of arranging funding for the Supporting Industry Development
Program as per Law on State Budget, mobilize ODA and establish the Supporting
Industry Development Center under Vietnam Law;
b) Take charge of and cooperate with Ministries, Departments to draw up incentive
policies in foreign investment in order to promote in-house supporting products
consumption.
5. Responsibilities of the Ministry of Environment and Natural Resources:
a) Cooperate with the Ministry of Finance and relevant Ministries and Departments
to review and propose to supplement incentive policies on land and environment for
supporting industrial production projects under the List;
b) Promulgate regulations on provision of execution and refund mechanism of
supporting industrial production projects under the List invested in industrial zones
that lease land having infrastructure from the Owner of this industrial zones who
leased land from the State and have already paid the land rent.
6. Responsibilities of the Ministry of Labor War Invalids and Social Affairs:
a) Take charge of and cooperate with relevant Ministries, Departments to review,
amend and supplement the current regulations of oversea specialists and qualified
workers who directly operating in the field related to supporting industry to simplify
the procedure for the issuance of work permit.
b) Cooperate with the Ministry of Trade and Industry to provide employees with
advanced training who directly work in the supporting industry.
7. Ministries, ministerial-level agencies and Governmental authorities within its
jurisdiction shall coordinate with the Ministry of Trade and Industry for management
of the supporting industry development as regulated.
Articles 15. Responsibilities of Peoples Committees of provinces
The Peoples Committees of provinces performing the management of the supporting
industry development shall be responsible for:
1. Formulate, amend and issue legal normative documents and policies on
development and assistance to the supporting industry in accordance with Vietnam
law and local conditions.
2. Develop, adopt and implement the Supporting Industry Development Program in
located locals.
178
3. Secure the local budget to organize the Supporting Industry Development Program.
4. Assign a local competent authority to implement the incentive certification,
prepare annual aggregate report on incentive-certified projects and submit to the
Ministry of Trade and Industry.
5. Promote, mobilize and attract capital invested in the Supporting Industry
Development Program in local.
6.Annually report to relevant Ministries and Departments on the progress of
development of supporting industry.
Chapter V
PROVISIONS OF IMPLEMENTATION
Article 16. Transitional treatment
The existing projects for manufacturing supporting products under the List shall be
received the existing new incentives prescribed in this Decree.
Article 17. Entry into force
This Decree comes into effect from January 01 2016 and nullifies the Decision no.
12/2011/QD-TTg dated February 02 2011 on policy on development of supporting
industry and Decision No. 1483/QD-TTg on the issuance of List dated August 26
2011 of the Prime Minister and related documents.
Article 18. Responsibility for Implementation
1. The Ministry of Trade and Industry shall be responsible for cooperating with other
Ministries, Departments, the Peoples Committees of provinces to deploy this Decree
and report to the Prime Minister on the implementation status and arising issues
needing solving.
2. Ministers, Heads of ministerial level agencies, Heads of governmental agencies,
President of Peoples Committees of provinces shall be responsible for implementing
this Decree./.
179
ANNEX
(ATTACHED WITH DECREE NO. 111/2015/ND-CP DATED NOVEMBER 03 2015 BY
GOVERNMENT)
CIRCULAR
REGULATION ON PROCEDURES FOR INCENTIVE CERTIFICATION AND
VERIFICATION OF PROJECTS FOR MANUFACTURING OF SUPPORTING
PRODUCTS ON THE LIST OF PRIORITIZED SUPPORTING PRODUCTS
Pursuant to the Decree No. 95/2011/ND-CP on functions, responsibilities,
power and organizational structure of The Ministry of Industry and Trade dated
November 12, 2012 of the Government.
Pursuant to the Law No. 71/2014/QH13 amending and supplementing a
number of articles of the Law on Taxation;
Pursuant to the Decree No. 111/2015/ND-CP on development of supporting
industry dated November 11, 2015 of the Government.
At the request of the Director of the Department of Heavy Industry.
The Minister of Industry and Trade issues this Circular regulating procedures for
incentive certification and verification of projects for manufacturing of supporting
products on the list of prioritized supporting products.
Chapter I
GENERAL PROVISIONS
Article 1. Scope
This Circular regulates procedures for incentive certification and verification
of projects for manufacturing of supporting products (hereinafter referred
to as the project) on the list of supporting products promulgated in the
Decree No. 111/2015/ND-CP on development of supporting industry dated
November 03, 2015 of the Government.
Article 2. Regulated entities
This Circular applies to entities that manufacture supporting products on the
list of supporting products given priority in Vietnam (hereinafter referred to
as the List).
Article 3. Interpretation of terms
For the purpose of this Circular, terms below are construed as follows:
1. Supporting products mean products in the industries of materials,
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Chapter II
APPENDIX 1
THE LIST OF PRIORITIZED SUPPORTING PRODUCTS DOMESTICALLY MANUFACTURED BEFORE JANUARY 01,
2015
(PROMULGATED TOGETHER WITH THE CIRCULAR NO. 55/2015/TT-BCT DATED DECEMBER 30, 2015 OF THE
MINISTRY OF INDUSTRY AND TRADE)
I. TEXTILE INDUSTRY
Synthetic
1 fibres : PE, Polyester PSF fibre 5503 20 00
Viscose
Accessories:
buttons
5 Textile labels 5807 10 00
,mex,zippers,
rubber bands
soles,
1 shoelaces,
toe-caps Parts of footwear (including uppers whether or not
attached to soles other than outer soles), removable
6406
in-soles, heel cushions and similar articles; gaiters,
leggings and similar articles, and parts
190
III. ELECTRONICS:
191
Home products
No. Priority products
Name of product HS Code Description of product
Used for radio and television: splitter, adders, Filters,
Components, spare parts of transmissions 8529 10 40
channel adders
types
IV. AUTOMOBILE INDUSTRY:
Home products
No. Priority products
Name of product HS Code Description
Used for motorbikes, automobiles Decree
Aluminum illuminated signs 9405 60 90
traffic signs
Labels 3919 90 90
Bumpers and parts thereof 8708 10 90
Front floor frames 8708 29 95
central floor frames 8708 29 95
front floor frames- left 8708 29 95
Front floor frames - right 8708 29 95
Rear floor frame 8708 29 95
Front floor frame -central 8708 29 95
Outer floor frames - left 8708 29 95
Frame hull door: punch Outer floor -right 8708 29 95
late-shaped components, A-pillars 8708 29 95
1 trunk, chassis, doors, B-pillars 8708 29 95
doorstep C-pillars 8708 29 95
D-pillars 8708 29 95
Tableau stiffeners 8708 29 95
Chassis 8708 99 62
Leaf springs and springs 7320 10 11 DIN2094:2006
Used for automobiles, machines
Spiral torsion springs 7320 20 00 Thickness of from 8 30 mm, arbor diameter
of from 50- 300mm
used for vehicles whose weight of at least 1.25
spring ball 8483 30 30
ton
Used for gears and gearing, other than toothed
wheels, chain sprockets and other transmission
Suspension system: Accessory balls 8483 40 00 elements presented separately; ball or roller
2
Tweezers, springs, dampers screws; gear boxes and other speed changers,
including torque converters
Balanced balls 8483 99 93 Used for trucks from 8-70 tons of weight
Used for trucks from 8-70 tons of weight
For passenger buses or buses of from 12-80
springs 8708 99 93 seats
For car of from 1-9 seats Spring width: 40 -150
mm Spring thickness: 5- 45 mm
Vehicle weight of 1,750 kg to 5,525 kg; outer
Typres, used for heavy trucks 4011 20
diameter of from 880 mm to 1,230 mm
Vehicle weight of 2,937 kg to 6,150 kg; outer
typres of specialized cars 4011
diameter of from 1,220 mm to 3,045 mm
Wheels: Tyres, aluminum Vehicle weight of 410kg to 3,050 kg; outer
3 Typres of light trucks 4011
rims diameter of from 475 mm to 972 mm
Vehicle weight of 104 mm to 160 mm kg; inner
Inner tubes of light trucks 4013 10
diameter of from 305 mm to 385 mm
rims 8708 70 32
gearboxes 8708 40 HS14, HS19, GT10, GT2, HDC
Transmission tubes 8708 40 92 Used for lubricating gearboxes
Transmission system: Components of clutches 8714 93 10
4 clutches, gearboxes, axles, Gears 8714 93 90
propeller shafts Transmission tubes 7326 90 99 Used for lubricating gearboxes
Rolling bars<0} 7616 99 99 Used for gearboxes
Cylinder liners 8409 99 44 Used for lubricating gearboxes
Brake fluid tubes 8708 30 29
5 Braking systems
Accelerators, brake or clutch pedals 8708 99 30
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Lead-acid electric accumulators 8507 20 99 Of a kind used for lubricating piston engines
Power suppliers: electric Of a kind used for bucket trucks using electric
195
This appendix is compiled according to current lists of machineries, equipment, materials and accessories, etc. that have been
manufactured by January 01, 2015 of competent Ministries and Departments. Any suplementation shall be considered adding to
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this Appendix by the Ministry of Industry and Trade, and other relevant Ministries and Departments.
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Clause mention on Supporting Industry in Decree 12/2015/ND- CP on Elaboration
of the law on amendments to tax laws and amendment to some articles of decrees on
taxations.
DECREE
ON ELABORATION OF THE LAW ON AMENDMENTS TO TAX LAWS AND
AMENDMENTS TO SOME ARTICLES OF DECREES ON TAXATIONS
Pursuant to the Law on Government organization dated December 25, 2001;
Pursuant to the Law on Tax administration dated November 29, 2006 and the Law on
the amendments to the Law on Tax administration dated November 20, 2012;
Pursuant to the Law on Tax administration dated November 29, 2006 and the Law on
the amendments to the Law on Tax administration dated November 20, 2012;
Pursuant to the Law on Value-added tax dated June 03, 2008 and the Law on the
amendments to the Law on Value-added tax dated June 19, 2013;
Pursuant to the Law on Corporate income tax dated June 03, 2008 and the Law on
amendments to the Law on Corporate income tax dated June 19, 2013;
Pursuant to the Law on Severance tax dated November 25, 2009;
Pursuant to the Law on amendments to tax laws dated November 26, 2014;
At the request of the Minister of Finance,
The Government promulgates a Decree on elaboration of the Law on Amendments to
tax laws and amendments to some Articles of Decrees on taxations.
Article 1. Amendments to some Article of the Governments Decree No. 218/2013/
N-CP dated December 26, 2013 on elaboration of the Law on Corporate income
tax, Article 1 of the Governments Decree No. 91/2014/N-CP dated October 01,
2014 on amendments to Decrees on taxations:
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than 12 months);
dd) High technology enterprises, science and technology enterprises, science and
technology organizations defined by regulations of law on high technology, science
and technology.
2. Rules for applying investment incentives:
a) Investment projects specified in Point c Clause 1 of this Article are eligible for the
same investment incentives as investment projects in extremely disadvantaged areas;
b) Investment projects specified in Point d Clause 1 of this Article are eligible for the
same investment incentives as investment projects in disadvantaged areas;
C) Investment projects in business lines eligible for investment incentives in
disadvantaged areas are eligible for the same investment incentives as investment
projects in extremely disadvantaged areas;
d) an investment project that is eligible for various levels of investment incentive may
apply the highest level;
dd) Corporate income tax (CIT) incentives for investment projects in industrial parks,
export-processing zones specified in Section 55 of Appendix II to this Decree shall
comply with regulations of law on CIT;
e) Land rent incentives in industrial parks, export-processing zones specified in
Section 55 of Appendix II to this Decree do not apply to investment projects in
industrial parks and export-processing zones in urban districts of special class and
class I central affiliated cities, and class I provincial cities.
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APPENDIX I
LIST OF BUSINESS LINES ELIGIBLE FOR INVESTMENT INCENTIVES
(Promulgated together with the Governments Decree No. 118/2015/ND-CP dated
November 12, 2015)
A. BUSINESS LINES ELIGIBLE FOR SPECIAL INVESTMENT INCENTIVES
I. HIGH TECHNOLOGY, INFORMATION TECHNOLOGY, ANCILLARY INDUSTRIES
1. Application of high technologies on the List of high technologies given priority
under the Prime Ministers decisions.
2. Production of products on the list of hi-tech products given priority under the
Prime Ministers decisions.
3. Production of ancillary industry products under the Prime Ministers decisions.
4. Development of high technologies and high technology enterprises; venture
investment in high technology development; application, research and development
of high technology according to regulations of law on high technology; manufacturing
of biotechnology products.
5. Production of software products, digital products, key information technology
products, software service, information security services, information protection
service according to regulations of law on information technology.
6. Production of renewable energy, clean energy, and waste-to-energy production.
7. Manufacture of composite materials, light building materials, and rare materials.
II. AGRICULTURE
1. Cultivation, protection, and development of forests.
2. Farming, processing, preserving agriculture, forestry, and aquaculture products.
3. Production, breeding, cross-breeding plant varieties, animal breeds, and aquatic
breeds.
4. Salt production, extraction, and refinement.
5. Offshore fishing combined with advanced fishing methods; fishing logistics
services; construction of shipyards and ship-building.
6. Rescue services at sea.
III. ENVIRONMENTAL PROTECTION, INFRASTRUCTURE CONSTRUCTION
1. Concentrated waste collection, treatment, recycling, and reuse.
2. Construction, operation of infrastructure of industrial parks, export-processing
zones, hi-tech zones, and specialized areas in economic zones.
3. Development of water plants, power plants, water supply and drainage system;
bridges, roads, railroads, airports, seaports, river ports; airfields, train stations, and
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other particularly important infrastructural works decided by the Prime Minister.
4. Development of public transportation in urban areas.
5. Construction, management, and operation of rural markets.
IV. CULTURE, SOCIETY, SPORTS, HEALTHCARE
1. Construction of social houses and relocation housing.
2. Investment in epidemic prevention facilities.
3. Research and development of preparation technology and biotechnology for
production of new medicines.
4. Production of medicines ingredients and essential medicines, medicines for
prevention and treatment of sexually transmitted diseases, vaccines, biological,
herbal medicines, oriental medicines; medicines whose patents are about to
expire or relevant proprietary medicines; application of advanced technology and
biotechnology to production of medicines for humans according to international GMP
standards; production of primary packages of medicines.
5. Investment in manufacture of methadone.
6. Investment in centers for high-performance sports, sports training centers for the
disabled; construction of sports facilities having training and competition equipment
suitable for used at international competitions; professional sports training facilities.
7. Investment in geriatric centers, psychiatry centers, centers for treatment of dioxin
patients, centers for caring elders, the disabled, orphans, and homeless children.
8. Investment in Social Treatment Education Labor centers; rehabilitation centers
smoking cessation centers; HIV/AIDS treatment centers.
9. Investment in national museums, ethnic culture centers; traditional theatre groups;
theatres, film studios, film production facilities, film development facilities; fine art
photography exhibition centers; production, repair of traditional musical instruments,
maintenance of ethnic museums and art schools; facilities and trade villages for
introduction and development of traditional trades.
B. BUSINESS LINES ELIGIBLE FOR INVESTMENT INCENTIVES
I. SCIENCE AND TECHNOLOGY, ELECTRONICS, MECHANICS, MATERIAL
PRODUCITON, INFORMATION TECHNOLOGY
1. Production of products on the list of key mechanical products under the Prime
Ministers decisions.
2. Investment in research and development.
3. Production of steel billets from iron ore, high-grade steel, alloys.
4. Production of coke and activated carbon.
5. Production of energy-saving products.
6. Production of petrochemical products, pharmaceutical-chemical products, technical
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plastic rubber components.
7. Production of products with at least 30% added value (according to instructions of
the Ministry of Planning and Investment).
8. Production of automobiles, automobile parts, ship-building.
9. Production of electronic components and electronic clusters other than those
specified in (A).
10. Production of farming machines, equipment, components, machines serving
agriculture, forestry, aquaculture, salt production, food processing machines, and
irrigation equipment other than those specified in (A).
11. Production of materials to replace asbestos.
II. AGRICULTURE
1. Cultivating, gathering, processing herbs; protection of genetic resources, rare and
special herbs.
2. Production, processing of animal feeds.
3. Technological services related to cultivation, breeding, aquaculture, protection of
plants and animals.
4. Construction, upgrade or slaughterhouses; industrial preservation and processing
poultry and livestock.
5. Development of material areas serving processing industry.
6. Fishing.
III. ENVIRONMENTAL PROTECTION, INFRASTRUCTURE CONSTRUCTION
1. Construction and development of infrastructure of industrial complexes.
2. Construction of apartment buildings for workers in industrial parks, export-
processing zones, hi-tech zones, economic zones; construction of dormitories for
students and houses for beneficiaries of incentive policies; construction of urban
areas (including kindergartens, schools, hospitals) serving workers.
3. Recovery of oil spill, landslide, dyke, riverbank, seashore, dam, reservoir erosion,
and other environmental emergencies; application of technology to minimization of
greenhouse gas emission.
4. Investment in operation of exhibition centers, logistics centers, warehouses,
supermarkets, shopping malls.
IV. EDUCATION, CULTURE, SOCIETY, SPORTS, HEALTHCARE
1. Investment in operation of infrastructure of educational institutions, development
of non-public educational institutions, including preschool education, compulsory
education, and vocational education,
2. Production of medical equipment, construction of warehouses for preservation of
pharmaceuticals and reserve of medicines for humans in case of disasters, epidemics.
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3. Manufacture of ingredients of medicines and pesticides; drugs for animals and
aquatic organisms.
4. Investment in biological testing facilities, bioavailability assessment, pharmaceutical
facilities that meet good practice standards for manufacturing, preservation, testing,
clinical trial of medicines.
5. Investment in research into scientific foundation of traditional medicines and
establishment of standards for testing traditional medicines
6. Investment in sports centers, stadiums, swimming pools; facilities for production,
repair sports equipment.
7. Investment in public libraries and cinemas.
8. Investment in construction of cemeteries, crematories.
V. OTHER BUSINESS LINES
1. Peoples credit funds and microfinance institutions.
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Brief report
on import and export performance of metal, electronics and
plastic parts and components from 2010 to 2014
208
Main export markets of Vietnam components and spare parts are East Asia countries
such as China, Korea and Japan. Export value to these three countries is $ 5.5 billion
USD, accounting for 37.8% of total exports of components and parts of Vietnam.
Exports to China, South Korea also has a very fast growth rate (period from 2009 to
2014, export growth rate to China is 69.6% per year; Korea 46.4% per year). Export
value to EU reached $ 1.1 billion, accounting for 7.4% of the total export value of
Vietnam, average growth in period 2009-2014 reached 32.7% per year.
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Figure 6: Main export markets of Vietnam components and spare parts
Other large imported products are code 853400 (printed circuit; turnover of $ 1.3
billion, imports from Korea, China); code 852 990 (components for radio, television,
turnover of 1.2 billion USD, imported from China, Japan, ASEAN countries);
components, automobile parts ($ 1.7 billion, imported from ASEAN countries, Korea,
Japan). In addition, Vietnam has very high demands on components, spare parts for the
consumer electronics industry, automotive, agricultural machinery,etc.
SI is the foundation of industrial sectors, Vietnam Government focused and prioritized
to development. From 2011, Vietnam has issued policies to encourage investment,
production, development SI. Especially in 2015, the government issued an important
policy document, which is the basis for more vigorous implementation of policies and
activities to encourage and attract investment and help businesses in the area SI.
Important documents related to IT, were issued in 2015:
1) Law on amending and supplementing some articles of the Law on taxes and
Decree No. 12/2015/ND-CP guiding to amend and supplement some articles of
the Law on taxes: SI firms are awarded preferential corporate income tax rate;
2) Investment Law in 2014 and Decree No. 118/2015/ND-CP detailing and guid-
ing a number of articles of the Law on Investment: SI is a special field of invest-
ment incentives, entitlement high levels of investment incentives, production in
Vietnam;
3) Decree No. 111/2015/ND-CP on supporting industry development: regulation
policies and activities to encourage and support the development of supporting
industries;
216
Besides, the demand for components and spare parts in Vietnam today is massive.
Especially components for mobile phones and tablets; consumer electronics; pro-
duction and assembly of automobiles, agricultural machinery, processing machin-
ery ... On the other hand, with the fact that Vietnam has officially joined the Asean
Economic Community (AEC), and is also negotiating important trade agreements
such Vietnam - EU; TPP, Vietnam SI firms will have certain advantages to promote
exports to these markets.
REFERENCES
Decree 111/2015/ND-CP on Development of Supporting Industry
General Statistic Office (2015), Statistical yearbook 2014.
SIDEC (2015), Survey report on supporting industrial development by promotion
linkage and supplying for electronic multinational companies in Vietnam.
SIDEC (2015), Vietnam manufacturing supporting industry yearbook 2014 2015.
wits.worldbank.org/ (accesses March, 2016).
ABOUT SIDEC
Established in 2009 by the Institute for Industrial Policies and Strategies (IPSI), the
Supporting Industry Development Enterprise Center (SIDEC) is the pioneer organization
in promoting the development of the supporting industries in Vietnam, with the focus
on producing components and spare parts for Vietnams manufacturing industries.
As a unit of IPSI and the Ministry of Industry and Trade (MOIT), SIDEC is in charge of
conducting study, investigation and examination for drafting policies on supporting
industries for the process of drafting policies in the fields. Besides, SIDEC also
takes on the important responsibility to support the development of manufacturing
enterprises in supporting industries, particularly the SMEs. In recent years, SIDEC
has been conducting questionnaire surveys in regions and in supporting industries
to evaluate the practical situation. Information and results have been published on
SIDECs website. Since 2013, we have also released free-of-charge printed monthly
issues on supporting industries in both Vietnamese in English for those with concerns.
From 2014 to 2017, within the frame work of the European Trade Policy and
Investment Support Project (EU-MUTRAP), we are honoured to be awarded by the
European Union for the project Vietnams supporting industry to target the European
market. The projects objective is to enhance the capability of domestic component and
part manufacturers to cope with requirements of the EU and international markets. The
project aims to bolster manufacturing and trading capabilities of these manufacturers,
providing them with necessary information and establishing connections between
these enterprises and their perspective customers in the EU as well as the international
market. The project also aims to construct an effective cooperation network between
participants to boost the sustainable development of supporting industries of Vietnam.
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