Nam Phu Yen Economic Zone

South Phu Yen economic zone is the combination of economic area, important dynamic area of the Southcentral coastal region. This is the focal gate of road traffic, waterways, aviation of the Southcentral coastal region, western highland with provinces of the south of Laos. North East Campuchia and Thailand. It is a transitional space between the key economic area of the Central region with a key economic area of the South, South Phu Yen economic zone is one of 15 coastal line economic zone of all over the country.

With the era of 20,730ha located in Tuy Hoa and Dong Hoa district, Phu Yen province, stretching from the South of Da Nang river to Vung Ro port, the east is adjacent to the East Sea, the west is adjacent to the South-North highway corridor, the south is adjacent to the Van Ninh of Khanh Hoa province, the north is adjacent to the Da Rang River. South Phu Yen economic zone has a very favorable position in the exchange links and direct integration with international and domestic economic development regions.

Phu Yen is a coastal province in the South  Central Coast of  Vietnam, boders Binh Đinh province to the north, Khanh Hoa province to the south, Dak Lak and Gia Lai provinces to the west, the East sea to the east, with natural area of 5,060 km2 .

- Phu Yen  is 1,160 km from Hanoi Capital to the north, 561 km from Ho Chi Minh city to the south along Natinal Highway 1A. The  coast line is 200 km in length.

- The Province has 09 administrative units.  Besides Tuy Hoa city and Song Cau Town , there are districts of  Dong Hoa, Tay Hoa, Song Hinh, Dong Xuan, Son Hoa, Phu Hoa and Tuy an.

- Average population of 885,500 people, of which the labor force occupied over 50% of population, the rate of trained workers occupied  31.8% of labor force, the number of  annual training of  Human resource is over 2,500 technical workers.

- The province is surrounded by mountains in the sides: Cu Mong mountain range in the north, Vong Phu – Deo Ca range in the south, the  eastern sides of Truong Son range in the west, and the East sea to the east.

- The  province’s topography consists of hilly regions and fertile plains coming alternately.

- A tropical moonsoon climate is dominant in Phu Yen, which is influenced by ocean climate and divided into two separate seasons: wet season and dry season. Annual rainfall is 1,500 – 1,700 mm/year. Wet season  starts from September through December, and dry season from January through August. Yearly average temperature: 26, 5 oC, temperature ranges from 23.8 oC-30.3 oC; average humidity: 78%.

1. Economy:
   The Economy of Phu Yen develops stably with GDP increases averagely over 10%/ per year contributing to the economic shifting in the right direction and effectively, The export turnover is 87 million $US a year with some main export goods of cashew, processed seafood, garment, handy crafts, paving stone, decorated glass; The import goods gets 52 million $US and income per capita of 688 $US per year.
2. Transportation:
   Transportation is convenient with seaway, railroad, and road; National road 1A and North-South railroad is the eastern gateway to the sea for highlands provinces. Da Rang 2 bridge after going into operation will take Hung vuong Avenue across the river and connecting the Center of Tuy Hoa city with Dong Tac airport and Hoa Hiep industrial Zone, Vung Ro deep-sea port has received the ship with loading over 3000 DWT, and with Van Phong sea port adjacent to the South they will be the international transshipment sea port and along with the development of passenger transport survives by road, railway and flight, the time to Phu Yen has been shortened.
   From Ha Noi and HCM city to Phu Yen takes about 1hour 45 minutes by flight making favorable condition for investors, tourists to visit, to tour, relax, invest and do the business in Phu Yen. Tuy Hoa airport is large enough for landing of big planes; the flights to and from Tuy Hoa- HCM city every day and 5 flights a week to and from Tuy Hoa -Ha Noi are effective solutions to stimulate and attract investors and tourists to Phu Yen in the near future.
3. Education:

There are 02 universities ( Construction University of the Central Region and Phu Yen University), 01 Bank Academy ( Phu Yen sub-Academy ), 02 Vocational Colleges( Tuy Hoa Industrial College and Phu Yen Vocational College) and 15 vocational establishments . The annual number of graduates from universities and college is 1,650, from vocational colleges is 1,700 and the number of skillful workers is 9,000, which can satisfy the workforce demand for production in the province.

4. Tourism:
   There are many natural attracting landscapes and tourist spots with gulfs and lagoons in Phu Yen which has been evaluated as the first-class in Viet Nam, besides there are many special national landscapes, much potential of eco-tourism, mountains, beaches and cultural tourism. Nhan Mountain is in the center of Tuy Hoa city with Nhan tower heritage together with Da River, a big river in the Central, creating the typical image of Tuy Hoa and Phu Yen.
   From Tuy Hoa to the North, there are Long Thuy beach, O Loan lagoon, Chua islet, Yen islet, Da Dia cliffs, Mai Nha island, Xuan Dai gulf ; and to the South, Vung Ro bay with vestige of Non-number ship, Xep beach, and Mui Dien lighthouse where welcomes the sun ray earliest in Viet Nam. In the province there are 40 tourist staying places, in 2010 the number of tourists coming to Phu Yen increased 37.5% compared with the last year with total tourist turnover of over 5.5 million $US.
   Some Hotels with high class of services, and seaside Resorts with standard of 4 and 5 stars going into operation create the diversity and attraction for domestic and foreign tourists.
   In the end of December, 2010, Phu Yen has attracted 185 investment projects with total registration capital of 16,645 billion VN Dong and 7.9 billion $US, of which there are 33 foreign invested projects from 18 countries and territorial regions, some big investment projects are as Vung Ro oil refinery with investment capital of 1.7 billion US$, High class complex resort with investment capital of 4.3 billion US$ and creativeness City project with 1.16 billion US$ in Phase 1. 6. History:
   Late 16th century, Luong Van Chanh brought people to the land reclamation from the south to the Cu Mong Pass to Da Bia Mountain, forming the residential coastal areas and the lowland slopes the Ba Delta, Ban Thach river and exchange with indigenous villages in the highlands of eastern Truong Son. By the early 17th century, the land from the Cu Mong Pass to Da Bia Mountain became rich and populous - this is the basis for the establishment of Lord Nguyen Hoang Phu Yen province in 1611, the far circle 400 years.
   Culture:
   Phu Yen people usually is called People of "nau place" because of their particular voice ( "nau" means people)
   There is a kind of folk-song in Phu Yen - " Bai Choi" a popular folk-song in the Province.
   Phu Yen is also a place discovering many cultural heritages such as the valuable epic of the Ethnic minority, Tuy An Litho phone set with precise standard tone and the unique stone horns.
   Festival:
   Besides the common festivals of the Country, there are some particular festivals in the region which are recognized as the Non-materials cultural heritages of Viet Nam such as:
   - Festival of " Bai choi", a festival with folk-song of deep characteristics culture of Phu Yen.
   - O Loan lagoon festival in Tuy An district.
   - Festival of Praying for fishes of fishermen.
   Cuisine:
   + There are many popular cakes such as " Banh xeo" . " Banh canh" ….
   + The food from Tuna Fish: Phu Yen where onset famous tuna fishing since the beginning of the 90s so the tuna specialties brought the focus here very particular characteristic of the coastal people.

Legends:
+ Phu Yen has many legendary stories connecting with the history of over 400 years old of the Province.

Land resources:  Phu Yen’s land resources comprises of various land types, distributed in different terrains, creating agro- forestry ecological zones suitable for crop plants, especially hilly perennial plants.

Water resources: Phu Yen has over 50 small and big rivers. Three main rivers  are: Ky Lo river, Ba river and Ban Thach river with the valley area of 16,400 km2 and flow discharge at 11,8 billion m3, supplying sufficient water for agricultural, electricity production and daily consumption of Phu Yen residents.

Marine resources: Phu Yen’s coast line is long, tortuos with a lot of mountain strips spreading out to the sea, forming up bays, gulf, laggoons. Brackish waters at river mouths form up three typical ecological brackish water zones along the sea coast: the river mouth zone, the laggon zone, and the gulf zone over an area of 21,000 ha. These zones are places where baby shrimps and fishes are reproduced. Coastal brackish waters are very suitable for aquaculture for export.

Mineral resources:

Geological surveys have shown that Phu Yen is rich of mineral resources:

- Diatomit: estimated reserves of 90 million m3.

- Granite rocks: estimated reserves of 54 million m3.

- Gold dust: A total estimated reserve is 21,245 kg.

- Aluminum bauxite: estimated reserves of 4.8 million tons.

- Iron: estimated reserves of 924,000 tons.

- Fluorite:  estimated reserves of 300,000 tons.

Tourism resources:

Phu Yen has a variety of natural and man-made tourism resources owing to its long coast, numerous bays bearing natural and neglected beauty like Cu Mong Laggon, Xuan Dai Gulf, O Loan Laggon, Ro Bay, ect,..; picturesque beaches like Bau Beach, Tu Nham Beach, Xep Beach, Long Thuy Beach, Tien Beach, Mon Beach ect,..; beautiful reefs and islands like Ganh Đo ( Red Reef), Đa Đia Reef( National landscape), Nhat Tu Son, Lao Mai Nha, Yen Island, Chua Island, Nua Island ect,..; a lot of special seafood like ocean tuna, grouper, crab, lobster, arca, ect,..

Phu Yen is endowed with many attacctive natural forest landscapes such as Krông Trai Nature Reservation Zone and Restricted Forest north of Đeo Ca spreading over thousands of hectares; hot mineral streams: Phu Sen, Tra O, Lac Sanh, Triem Duc and a great number of lakes and falls, very suitable for ecotourism development.

1. For the Enterprise Income Tax:
2. Preferential tax rates are calculated from the first year of business operation having income:

 - For the new enterprise established from investment projects in the economic zone enjoying the preferential tax rate of 10% within 15 years.

Large scale enterprises, enterprises using high or new technology, or investing in fields of particular invested attraction, the Minister of Finance will submit to the Prime Minister to have decision on extending the time of applying preferential tax rate of 10% (but no more than 30 years).

- The enterprises operating in the area of ​​socialization according to the Prime Minister's decision (education and training, vocational training, health, culture, sports and environment) enjoy the income tax rate of 10% during the time of operation.

1. Exemption and reduction of tax

Exemption from tax with a maximum time of four years and reduction of 50% of tax payable with a maximum time of the following nine years, calculated from the first year which the enterprises have income tax.

2. Value added tax (VAT):
3. Subjects are not taxable:

- Raw materials imported for producing or processing the goods for export under the contract of  production for export signed with foreign parties.

- Goods and services traded between the foreign companies and non-tariff areas, and among non-tariff  areas together.

- Technology transfer in accordance with the Law on Technology Transfer.

- Transfer intellectual property rights in accordance with the Law on intellectual property.

- Computer software

1. The subject enjoying the tax rate of 0%:

- Goods and services for exports, international transportation

- Reinsurance services abroad

- Credit services, capital transfer, accrued financial services

- Telecommunication services

- Products from unprocessed natural resources and minerals in accordance with the regulation of the Government

1. The subject enjoying the tax rate of 5%:

- Clean water for production and living

- Fertilizers, insecticides, pesticides and stimulants for animals and plants

- Foodstuff for cattle, poultry and other livestock. 

- Manual Product such as rush, bamboo, leaves, straw, coconut shells, water hyacinth and other handicraft products from agricultural raw materials 

- Specialized Machinery and equipment for agricultural production

- Children toys, books of all kinds

3. Export - Import tax:
4. Subjects are not taxable:

- Goods from the non-tariff exporting to abroad; goods importing from abroad to non-tariff zone and only use in non-tariff zone, goods transporting from one non-tariff zone to another non-tariff zone.

1. Exempt subjects:

-Goods temporarily imported for re-export or temporarily exported for re-entry to participate in fairs, exhibitions and introduction of products

-Goods imported for processing for foreign partner, goods sent abroad for processing

-Goods imported to create the fixed assets of investment promotion projects

-Goods produced, processed, recycled or assembled in the non-tariff zone without the use of raw materials and components imported from abroad

4. Special consumption tax:

- Goods imported from foreign countries into non-tariff zone, goods from domestic sales to and only use in non-tariff zone, goods traded among the non-tariff zones are not counted as taxable special consumption.

5. Land and water surface rent:
6. Land and water surface rent shall be exempted in the following cases:

- Investment projects in the field of especially encouraged investment.

- Projects using land to build apartments for workers in industrial zones approved by the competent authorities.

- During the time of construction approved by the competent authorities.

- Land rent exemption from the date of completing the construction  and putting into operation, as follows:

+ Fifteen (15) years for projects on the list of encouraged investment.
+  Eleven (11) years for other projects.

1. Land rent rate:

- The land rent rate of each project is stable in 5 (five) years.

- The land rent rate per year for projects in the field of encouraged investment, field of especially encouraged investment is 0.25% of the land rent rate for the purpose of land use.

1. Lease duration:

The maximum time of land lease is 70 years.

6. Investment Support

The Management Board will create favorable conditions to support investors in the process of completing the procedures of registration and implementation of investment projects. As for the foreign investors, overseas Vietnamese and their family members are granted visas on entry or exit with value of many times and suitable time for working, residence and temporary residence in the economic zone and in Viet Nam.