Free Trade Zone (FTZ)
Both free trade zones (FTZs) and special economic zones (SEZs) are economic areas with preferential tax and regulatory regimes to attract foreign direct investment (FDI) and boost economic growth.
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FTZs typically focus on trade and logistics activities, while SEZs have a broader focus that may include manufacturing, services, and tourism.
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9 Dragons City's FTZ
9 Dragons City's FTZ is designed to attract foreign investment in strategic industries such as food processing, biotechnology, fertilizer, pharmaceuticals, clothing, electronics, fintech, and web3.
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Benefits of the 9 Dragons City FTZ
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Tax breaks: The 9 Dragons City FTZ will offer competitive tax breaks, such as a corporate tax rate of 15% or 12%.
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Customs exemptions: The 9 Dragons City FTZ will simplify customs procedures and offer exemptions for certain goods.
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Simplified regulations: The 9 Dragons City FTZ will have simplified regulations to make it easier for businesses to operate.
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Access to skilled labor: The 9 Dragons City FTZ will provide access to a skilled labor force.
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Infrastructure: The 9 Dragons City FTZ will invest in infrastructure to support businesses.
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Clear and transparent regulatory framework: The 9 Dragons City FTZ will have a clear and transparent regulatory framework to give businesses confidence.
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Promoting the FTZ
The 9 Dragons City FTZ can be promoted to potential investors through a variety of channels, such as trade shows, conferences, and online marketing campaigns.
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Benefits of setting up a business in a free trade zone in Vietnam
Foreign investors and business owners who set up in Vietnam's free trade zones can benefit from a variety of fiscal and non-fiscal policy incentives, including:
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Tax reductions: Free trade zones offer tax reductions, such as a reduction in corporate income tax for a certain period of time.
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Customs exemptions: Free trade zones offer customs exemptions for certain goods.
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Simplified regulations: Free trade zones have simplified regulations to make it easier for businesses to operate.
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Access to skilled labor: Free trade zones provide access to a skilled labor force.
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Infrastructure: Free trade zones invest in infrastructure to support businesses.
Differences between duty-free zones and free trade zones in Vietnam
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Duty-free zones in Vietnam are economic zones with a specific geographic boundary established under the decisions of the Prime Minister. These zones primarily focus on exempting goods from import duties until they leave the zone.
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Free trade zones in Vietnam, also known as economic or industrial zones, are established to attract foreign direct investment (FDI) and stimulate the economy. These zones provide various fiscal and non-fiscal policy incentives to foreign investors and business owners.
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Requirements for setting up a business in a free trade zone in Vietnam
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Foreign investors and business owners can set up their companies in Vietnam's free trade zones and own 100% of their company without the need to find a local partner or establish a joint venture.
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The process of setting up a business in Vietnam's free trade zones involves obtaining an investment registration certificate, a business registration certificate, and other necessary licenses and permits.
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Businesses operating in Vietnam's free trade zones must comply with all applicable Vietnamese laws and regulations.
Conclusion
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Free trade zones offer a number of benefits for foreign investors and business owners who are looking to expand their operations into Vietnam. The 9 Dragons CityFTZ is a particularly attractive option due to its focus on strategic industries and its commitment to providing a business-friendly environment.