The central government is reportedly preparing to announce23 billion dollars in concessions to foreign companies setting up manufacturing units in the country. Along with automobile manufacturers, solar panel manufacturers and consumer appliance companies, textile units, food processing plants and specialized pharmaceutical manufacturers will also benefit in the first phase.
The concessions will be included in the Production Linked Incentive scheme announced by the government earlier this year. Immediately after the announcement of the project, Samsung, Foxconn and Wistron announced that they would invest 1.5 billion dollars in the country and start mobile phone manufacturing factories.
Experts say the project will help revive the country's manufacturing sector. In addition, the report said that the benefits of the scheme will soon be extended to products currently imported from China, such as furniture, plastics, toys and cheaper consumer durables.
Following a 23.9 per cent decline in GDP in the first quarter, the government aims to revive the economy by any means. To this end, as part of the Ease of Doing Business, bankruptcy laws have been relaxed and corporate taxes have been reduced to the lowest rates in Asia. However, Vietnam is still a favorite destination for manufacturing companies.