Employees of the Samsung Bac Ninh plant gather at a break time. Photo: Internet
Display Vietnam Company has announced a plan to add another $2.5 billion to its existing project in the northern province of Bac Ninh
as the South Korean electronics giants seeks to tap the low labor cost in the country.
The investment will be carried out in five years starting 2018, bringing the sum to be invested in this project to $6.5 billion, the Ministry of Planning and Investment-run Dau Tu newspaper reported.
Parallely, the company has asked for the same tax incentive that the project, which is classified into hi-tech category, has enjoyed.
The Bac Ninh government has proposed the prime minister concede the tax reduction for Samsung Display.
South Korean companies have deployed 592 projects worth a combined $8.6 billion in Bac Ninh, accounting for 65.6% of the total foreign direct investment in the province.
Samsung has been the largest single foreign investors in Vietnam, with its investments totaling some $15 billion. This is not the first time the Korean giant asks for incentives for its projects in the country.
The foreign sector plays a crucial role in the Vietnamese economy, but considerable tax incentives granted to overseas investors may lead to distortions of overall investment climate, the World Bank has said in a report last month.