Thanh Thuy border gate.

The People’s Committee of the northern mountainous province of Ha Giang held a ceremony on January 12 to announce the Government’s decision on the establishment of a national border gate economic zone (EZ).

The Thanh Thuy EZ will cover more than 28,700 hectares in seven communes of Thanh Thuy, Phuong Tien, Thanh Duc, Xin Chai, Lao Chai; Phong Quang (Vi Xuyen district) and Phuong Do (Ha Giang town).

The EZ will be a centre for foreign trade and co-operative development with China and a major import-export venue in the northern region.

It will serve as a non-tariff zone and encompass an export processing zone, an industrial zone, a recreational park and office and apartment areas.

The EZ will be built between now and 2020. In the first phase that will end in 2015, basic infrastructure will be built together with activities to call for investment. The remaining part of the project will be developed from 2016 to 2020.

Businesses set up at the zone shall enjoy a preferential tax rate of 10% for 15 years and be exempted from corporate income tax for four years and a 50% reduction in corporate income tax for the next nine years.

Vietnamese and foreigners working at the zone shall enjoy a 50% reduction in personal income tax.

Imports into and exports from non-tariff zone will be exempted from the value added tax. (VNA)