Proposing preferential policies for manufacturing industry serving the electricity sector

Đề xuất chính sách ưu đãi cho công nghiệp chế tạo phục vụ ngành điện lực- Ảnh 1. — The Ministry of Industry and Trade proposes preferential policies for manufacturing industries serving the electricity sector.

The Ministry of Industry and Trade said that according to the adjusted Power Plan VIII approved by the Prime Minister in Decision No. 768/QD-TTg dated April 15, 2025, the investment demand in the electricity sector is very large, specifically as follows:

Period 2026 - 2030: Total investment capital for developing power sources and transmission grid is equivalent to 136.3 billion USD, of which: investment for power sources is about 118.2 billion USD, power transmission grid is about 18.1 billion USD.

Orientation for the period 2031 - 2035: Estimated capital demand for investment in developing power sources and transmission grids is equivalent to 130.0 billion USD, of which: investment in power sources is about 114.1 billion USD, power transmission grid is about 15.9 billion USD, will be determined in the following plans.

Orientation for the period 2036-2050: Estimated capital demand for development investment in power sources and transmission grid is equivalent to 569.1 billion USD, of which: investment in power sources is about 541.2 billion USD, transmission grid is about 27.9 billion USD, will be determined in the next planning.

If Vietnam has a reasonable policy to promote the localization of domestic electromechanical equipment, especially preferential policies in purchasing designs and receiving technology transfer for production lines and equipment within the scope of power source and grid projects, it can create a market for electromechanical products and services for domestic enterprises of about 67.4 billion USD (from 2021-2030) and 199.6-255.6 billion USD (from 2030-2050), only calculating the localization level of about 50% including construction and installation.

Thus, it can be seen that the development demand of the electricity industry is very large. This has raised the requirement and necessity to quickly promote the development of the manufacturing industry in the electricity sector to contribute to ensuring national energy security, and at the same time make the manufacturing industry in the electricity sector an important production sector, contributing to socio-economic development, national defense and security.

Preferential principles for enterprises manufacturing electrical equipment in the electricity sector

According to the draft, enterprises manufacturing electrical equipment are entitled to incentives according to the provisions of the law on investment, tax, land, accounting regime and other relevant laws according to the incentive classification in Clause 2 and Clause 3, Article 4 of this draft Decree.

Clause 2 and Clause 3, Article 4 of the draft clearly state:

2. Products and equipment in the production of electrical equipment encouraged and supported for development:

a) Electrical products and equipment in the list of key mechanical products enjoy incentives and support according to the provisions of law on development of key mechanical products.

b) Components, spare parts and materials for the production of electrical equipment in the list of priority supporting industrial products for development are entitled to incentives and support according to the provisions of law on supporting industrial development.

c) Electrical equipment products on the List of strategic technologies and strategic technology products issued by the Prime Minister enjoy incentives and support according to regulations of law on high technology.

3. The Minister of Industry and Trade shall promulgate the List of items, equipment, technology and important consulting services in the electricity sector to be ordered and prioritized for supply in Vietnam in each period in accordance with the ability to master technology, domestic production and the socio-economic development situation.

Investment projects in the production of electrical equipment with investment capital scale and disbursement progress according to Government regulations, meeting criteria on high technology, technology transfer, Vietnamese enterprises participating in the chain, and domestic production value according to regulations of the Prime Minister are entitled to special investment incentives and support according to regulations in the Investment Law and other relevant legal regulations.

Corporate income tax incentives

Electrical equipment manufacturing enjoys corporate income tax incentives according to the provisions of the law on corporate income tax.

Import tax incentives

Enterprises manufacturing electrical equipment enjoy incentives of key mechanical product manufacturing industries and professions according to the provisions of law on export tax and import tax:

Import tax exemption for imported goods to create fixed assets directly serving electrical equipment manufacturing projects.

Enjoy 0% import tax rate for domestically unproduced raw materials, supplies and components imported to serve electrical equipment manufacturing projects.

Land incentives

Projects producing electrical equipment are exempted from or have reduced land use fees, land rents, and land use taxes according to the provisions of the law on land for key mechanical product manufacturing industries and professions.

Preferential accounting regime

Enterprises are allowed to depreciate quickly, increasing the deductible expenses when calculating taxable income for electrical equipment manufacturing projects according to the provisions of the law on accounting.

The Ministry of Industry and Trade is soliciting comments on this draft on the Ministry's Electronic Information Portal./.

Source: https://baochinhphu.vn/de-xuat-chinh-sach-uu-dai-cho-cong-nghiep-che-tao-phuc-vu-nganh-dien-luc-102251009165206026.htm