Why does Binh Duong province have such a preference for Lego?

In 2024, Binh Duong attracted over $2 billion in foreign direct investment (FDI), exceeding the set target and further affirming its position as one of the leading localities nationwide in attracting FDI.

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

Chairman of the People's Committee of Binh Duong province, Vo Van Minh, emphasized that in recent years, the province has built a favorable investment environment, from preferential tax policies to support for businesses throughout the project implementation process. These policies not only benefit businesses but also contribute to the overall development of the province's economy .

In order to attract FDI projects, Binh Duong has implemented 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 notable policy 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 business is exempt from income tax for the first four years after becoming profitable and receives a 50% reduction in income tax for the following nine years. This is strong financial support that helps reduce operating costs and strengthen the factory's financial capacity.

In addition, Lego was exempt from import duties on equipment, machinery, and materials for factory construction during the initial phase. Even imported raw materials and components for production were tax-free for the first five years. This helped reduce the financial pressure on Lego during its startup phase.

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

Mr. Nguyen Trung Tin, Head of the Binh Duong Industrial Parks Management Board, also informed that the management board has quickly supported administrative procedures such as issuing 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 momentum for the development of supporting industries and the business environment in Binh Duong.

Mr. Nguyen Van Cong, Director of the Binh Duong Provincial Tax Department, shared that tax incentives are an important tool to increase investment attractiveness, 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 anticipates a ripple effect on the local supply chain and supporting businesses.

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

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