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Monday, July 22, 2024

MOIT proposes interest subsidy for supporting industries

By N. Tan

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HCMC – The Ministry of Industry and Trade (MOIT) has presented a proposal for a tax incentive and a 3-percentage-point interest rate subsidy for producers in supporting industries that turn out priority products.

In a recent document submitted to Deputy Prime Minister Tran Hong Ha, the ministry collected feedback on the draft amendments of Decree 111, outlining various incentive policies to foster the development of supporting industries.

According to the ministry, manufacturers in supporting industries that make priority items would be eligible for preferential corporate income tax (CIT) and exemption from the global minimum tax. The ministry has already issued certificates for granting incentives to 206 enterprises falling under this category.

Apart from the CIT incentive, the revised draft of Decree 111 introduces mechanisms and policies aimed at enhancing the competitiveness of enterprises, aligning with the requirements of multinational corporations, and attracting investments into supporting industries.

Notably, the State budget intends to introduce interest rate support plans for commercial banks offering medium and long-term loans in Vietnamese dong to enterprises for investment purposes. Similarly, the local budget will offer an interest subsidy in conjunction with environment and land incentive policies for medium and long-term investment loans.

The draft of the amended decree classifies prioritized supporting industry products across sectors such as textiles and garments, footwear and leather, automotive, car assembly and manufacturing, and mechanical engineering.

Moreover, products in high-tech supporting industries and prioritized items in supporting industries that were manufactured before January 1, 2015 are also entitled to this incentive policy.

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