Why does Binh Duong "favor" Lego?

In 2024, Binh Duong attracted more than 2 billion USD in foreign direct investment, exceeding the set target, continuing to affirm its position as one of the leading localities in the country in attracting foreign direct investment (FDI).

The Lego factory (Denmark) is one of the largest FDI projects in Binh Duong and also one of the largest Danish investment projects in Vietnam. (Source: Investment Newspaper)

Chairman of Binh Duong Provincial People's Committee Vo Van Minh emphasized that over the past time, the province has built a favorable investment environment, from preferential tax policies to supporting businesses throughout the project implementation process. These policies not only bring benefits to businesses but also contribute to the overall development of the province's economy .

In order to attract FDI projects, Binh Duong has applied a series of special preferential policies for Lego. These policies not only reduce the cost burden for investors but also create a solid foundation for the sustainable development of the factory.

One of the notable policies is the preferential corporate income tax rate. The Lego factory will be subject to a 10% tax rate for 15 years, instead of the usual 20%.

In addition, the enterprise is exempted from income tax for the first 4 years from the time of making profit and has a 50% reduction in income tax for the next 9 years. This is a strong financial support to help reduce operating costs and enhance the financial capacity of the factory.

In addition, Lego is exempted from import tax on equipment, machinery and materials for factory construction in the initial phase. Even imported raw materials and components for production are exempted from tax for the first 5 years. This helps reduce financial pressure on Lego during the start-up phase.

Mr. Pham Trong Nhan, Director of the Department of Planning and Investment of Binh Duong province, said that the Lego factory is a clear demonstration of the favorable investment environment that the province is building. Incentive policies not only attract large investments but also create conditions for projects to develop sustainably and effectively.

Mr. Nguyen Trung Tin, Head of the Binh Duong Industrial Park Management Board, also informed that the management board has quickly supported administrative procedures such as granting investment certificates and construction permits, helping Lego implement the project more effectively.

The Lego factory in VSIP III Industrial Park not only brings direct economic benefits but also creates development momentum for supporting industries and the business environment in Binh Duong.

Nguyen Van Cong, Director of the Binh Duong Provincial Tax Department, shared that tax incentives are an important tool to increase investment attraction, but the tax sector also focuses on monitoring and ensuring that businesses fully comply with legal regulations. With Lego, the tax sector not only expects future tax revenue but also looks forward to the spillover effects on the local supply chain and supporting businesses.

In addition, the Lego factory project is expected to create more than 4,000 direct jobs and thousands of indirect jobs, contributing to personal income tax and domestic consumption. The factory is committed to achieving green standards and being carbon neutral, contributing to the province's sustainable development goals.

Source: https://baoquocte.vn/vi-sao-binh-duong-uu-ai-lego-297146.html