Representatives of Samsung Electronics Vietnam and of the Yen Binh Investment and Development JSC signed the land lease contract
Samsung Electronics on February 6 signed a contract with Yen Binh Investment and Development JSC to rent 100 hectares of land in Thai Nguyen Province for its second project in Vietnam, news website VnEconomy reported Thursday.
Its subsidiary Samsung Electronics Vietnam said it will rent the land for 49 years and the new plant will specialize in assembling hi-tech devices including mobile phones and tablets.
The company earlier had proposed that the Thai Nguyen provincal authorities to give the go-ahead for the project, which it said to cost around US$2 billion, at the Yen Binh Industrial Zone.
The project is estimated to attract around 10,000 labors in the first few years, and the figure could rise up to 30,000 a few years later, according to Samsung.
The Vietnam's government said in a statement last September that Samsung would get similar tax incentives as it got for its first plant in the northern province of Bac Ninh.
It means the firm will be offered a corporate tax rate of 10 percent "during the time the project is carried out", compared to 25 percent for most companies.
Among the incentives are corporate income tax exemption in the first four years of operation and half payment of taxes for nine following years.
The first plant, also the second largest of Samsung's mobile phone factories worldwide after the Kumi plant in South Korea, was opened at the Yen Phong Industrial Zone in 2009.
It is a foreign direct investment (FDI) project which has a total investment of of $1.5 billion, which also uses an area of 100 ha and has a life-span of 70 years. It attracts more than 24,000 workers annually produces 150 million products, or a fourth of the company's total output.