Le Thanh Border Gate Economic Zone

Le Thanh International Border Economic Zone

Le Thanh Border Gate Economic Zone is located in Gia Lai province, was established according to Decision No. 139/2001/QD-TTg on September 21, 2001, by the Prime Minister of the Vietnamese Government (at that time named the Border Economic Zone of Route 19, Gia Lai province).

By 2017, the Le Thanh border gate in Gia Lai province was upgraded from a national border gate to an international border gate according to Decision No. 306/QD-TTg (Le Thanh – Gia Lai province – An Dong Pech – Ratanakiri province – Cambodia).

Geographical location

The Le Thanh International Border Economic Zone includes the administrative boundaries of Chu Ty town, and the communes of Ia Kla, Ia Dom, Ia Nan, and Ia Pnon in Duc Co district, Gia Lai province.

The scope and boundaries for planning and research are defined as follows:

– The northern boundary borders Ia Chia commune (Ia Grai district).

– The eastern boundary borders Ia Dok commune (Duc Co district).

– The southern boundary borders Ia Puch commune (Chu Prong district).

– The western boundary borders Ratanakiri province, Cambodia.

It has a strategically important political position within the Vietnam-Laos-Cambodia development triangle, located 72 km from Pleiku city, 23 km from Duc Co district, 30 km from Ojadao district, and 75 km from Banlung city, Ratanakiri province (Kingdom of Cambodia).

Investment Situation of Le Thanh Border Gate Economic Zone:

Investment

In 2022, the Le Thanh International Border Economic Zone attracted one project with a total registered capital of 6 billion VND. Furthermore, investment decisions were adjusted for four projects, with one project receiving additional investment capital of 8.765 billion VND. Additionally, construction permits were issued for four projects, and feasibility study reports for construction investment were evaluated for one project.

To date, 36 investors have implemented a total of 40 projects in the Le Thanh International Border Economic Zone. The registered investment capital for these projects amounts to 556.6 billion VND. The realized investment capital, reaching 242.85 billion VND, accounts for 43.6% of the total registered investment capital.

Le Thanh International Border Gate Economic Zone has 11 projects completed and put into operation. Twenty projects are currently under construction. Nine projects are in the process of finalizing procedures. The main projects are mainly in the fields of trade, services, and suitable warehousing businesses in accordance with the characteristics of the border area.

Import and Export

Regarding trade between the two countries, the import-export turnover at Le Thanh International Border Economic Zone reached 125.76 million USD last year. This marked a 17% increase compared to 2021. The export turnover amounted to 50.55 million USD, showing a 30% growth. The import turnover reached 75.21 million USD, indicating a 10% increase.

The Department of Industry and Trade, in collaboration with the People’s Committee of Duc Co district, successfully organized a border market session at Le Thanh International Border Economic Zone in early December 2022. The Department of Industry and Trade, in collaboration with the People’s Committee of Duc Co district, spearheaded the event. The event involved businesses and people from both countries. It showcased economic cooperation and facilitated cross-border trade. The focus was on Gia Lai province and Ratanakiri province (Kingdom of Cambodia).

The leaders of the Provincial Economic Zone Management Board commend the achievements in 2022. These achievements are highly commendable. They take into account the circumstances of recovering from the Covid-19 pandemic. This serves as a foundation for investment, production, business activities, and trade growth in the border area in the five-year plan (2021-2025).

Attracting Investment of Le Thanh Border Gate Economic Zone:

In 2023, the Provincial Economic Zone Management Board aims to complete the comprehensive planning documents for the construction of the Le Thanh International Border Economic Zone until 2045. The board will make efforts to obtain approval from the relevant authority.

In addition, the relevant authorities need to continue improving administrative procedures and create conditions for businesses to transport goods through the border gate.

To boost trading activities in the border area, the province requires mechanisms and policies. These mechanisms and policies should support regular and attractive border market sessions. The Le Thanh International Border Economic Zone will host these sessions. The objective is to attract the participation of numerous businesses and residents.

The development plan for Le Thanh International Border Economic Zone aims to transform it. The goal is to create a dynamic economic region within Gia Lai province. It focuses on comprehensive technical and social infrastructure. The aim is to meet the requirements of a dynamic and sustainable international border economic zone.

Tax incentives for investment

Corporate Income Tax:

– Preferential tax rate: Enterprises implementing new investment projects are subject to a 10% tax rate for a period of 15 years.

– Exemption and reduction of corporate income tax: Exemption for the first 4 years from the year of taxable income and a 50% reduction in tax payable for the following 9 years.

Import Tax Incentives:

– Exemption from import tax on imported goods for fixed assets as regulated (Applicable to projects expanding project scale, technology replacement, technological innovation).

– Exemption from import tax for a period of 5 years from the start of production for: raw materials, supplies, components not yet produced domestically for investment projects.

Land Rental Exemptions and Reductions:

– Exemption from land rental during the basic construction period for a maximum of 3 years from the date of land lease decision.

– Exemption from land rental for eleven (11) years.

Note:Projects included in the List of Special Investment Incentives have an extended land rental exemption. The extension is for a period of fifteen (15) years. The List is specified in Appendix I of the Government’s Decree No. 118/2015/ND-CP dated November 12, 2015.

Non-agricultural Land Use Fee:

Exemption from non-agricultural land use fee. As regulated in Article 9, Clause 1 of the 2010 Law on non-agricultural land use tax.

Areas of focus for development

The economic zone encompasses various sectors and industries, including manufacturing, import-export, exhibition, and product introduction.

It also includes industrial, urban, tourism services, and logistics centers in Gia Lai province.

An important hub for goods and tourist transit along the East-West corridor between Vietnam and Cambodia.

A center for eco-resort tourism services beneath the forest canopy.

General Evaluation:

The Le Thanh International Border Economic Zone, with its strategic position, receives special attention from the governments of Vietnam, Laos, and Cambodia.

The development of this area has a significant impact on the development of Gia Lai province in terms of economy, society, environment, as well as national defense and security.

It also contributes to the development of the Northeastern provinces of Cambodia and the Southern provinces of Laos.

This region has great potential for developing agricultural products, agricultural import-export, processing industries, trade, and economic services at the border gate, particularly with Cambodia.