4 Benefits Of Enterprise Processing Export (EPE) When Choosing A Ready-built Factory

According to available data, Vietnam achieved outstanding performance in terms of import and export scale from 2011 to 2020 and has set a target for both scale and depth over the next ten years. That shows the substantial increase in import and export business, especially both export processing business every year and the need to find ready-built factory models. So why is there an increase in export processing enterprises and this model of a factory for rent? 1. Characteristics and incentives of EPE Enterprise Processing Export (EPE) is an enterprise established and operating in an export processing zone or an enterprise specializing in producing products for export operating in an industrial park or economic zone. Due to the specificity, the requirements and procedures for the establishment of EPE enterprises are much stricter than those of non-EPE enterprises, and they also enjoy more incentives from the policy of the Vietnamese government to promote the trend direction of economic restructuring. EPE Requirements for operation: Must ensure the type of activity is production and Completely separate from non-EPE businesses by a system of fences and separate entrances. Purposes: All manufactured goods must be 100% exported abroad. Established to attract foreign businesses. Geographical boundaries are border customs and tariffs. Tax incentives - Import and export tax: not subject to tax - VAT: apply the tax rate of 0% - CIT: tax exemption for the first 2 years, 50% reduction of the tax rate of 17% payable for the next 4 years. For businesses that have not yet made a profit, there is a maximum of 3 additional years of tax exemption in the first period. - Enjoy many incentives from investment policies, encouraging exports. With such characteristics, it is not difficult to explain why more and more EPE enterprises are looking for and choosing ready-built factories for lease to optimize initial costs, and construction time and reduce legal procedures. However, how to choose a ready-to-use workshop to suit the type of EPE is still a difficult problem. 2. Four reasons EPE businesses should consider choosing a ready-built factory GNP Yen Binh 2 4 problems when renting ready-built factories that EPE enterprises often encounter the first time is to consider the location of the factory to facilitate the movement and exchange of goods; policies of each locality; whether the natural conditions where the factory is located as well as the infrastructure of the rental factory are in the best condition. Therefore, the ready-built factory GNP Yen Binh 2 is the optimal choice for businesses when: -Geographical location, convenient transportation: GNP Yen Binh 2, the ready-built factory for rent, located next to residential areas, schools, and hospitals, especially next to Samsung factory headquarters. The move to Pho Yen city only takes 10 minutes; It only takes 30 minutes to go to Noi Bai airport or Bac Ninh logistics center. The ready-built factory Yen Binh 2 is also adjacent to many key roads such as Hanoi - Thai Nguyen, Hanoi - Hai Phong, and National Highway 1B. Therefore, moving to important transport hubs such as Lao Cai border gate through Vietnam - China and 4 seaports: Hai Phong, Nam Dinh Vu, Lach Huyen, and Cai Lan are convenient and fast (takes less than under 4 hours). - Attractive tax incentives and policies to support and encourage investment of Thai Nguyen province, especially for EPE enterprises when renting ready-built factories to produce goods. - Mild climate, abundant and skilled human resources; high immigration rate. - Infrastructure for high-class factories is invested with advanced quality: large capacity power supply system, natural light system and 24/24 security, optimizing space use with transparent eaves, no columns inside, clear internal roads, and many other amenities. With a favorable geographical position, optimal mobility for the purpose of exporting and importing raw materials, and invested in infrastructure with advanced quality, Yen Binh 2 high-class ready-built factory is the base association that cannot be ignored. Moreover, the Thai Nguyen provincial government has specially devoted many supportive policies, along with the young labor force and favorable natural conditions in the locality, which will help the enterprise's goals to be thoroughly optimized: "Transfer" to Vietnam with foreign enterprises and want to expand the international market with domestic enterprises.