Export Processing Enterprises (EPE) in Vietnam: all procedures

Export Processing Enterprises (EPE) is popular investment model by foreign investors in Vietnam. This is choice of a lot of huge manufacturers as the trend of China plus one. Once opening EPE in Vietnam, foreign companies will get many advantages:

– Firstly, preferential corporate income tax
– Second, preferential land use fee
– Third, preferential import and export tax

What is Export Processing Enterprises (EPE)?

Export Processing Enterprises (EPE) is an enterprise established and operating in an export processing zone, or specializing in the production of products for export operating in industrial parks or economic zones.

– Manufactured goods must be 100% exported to foreign countries.

– Export processing enterprises must follow inspection and supervision conditions of Customs

– There must be a written consent from the customs to approve the establishment of an export processing enterprise

EPE location is often in export processing zone (EPZ) which is near to seaport and airport. This location make EPE export more efficient. Sometimes, EPEs set up in EPZs are allowed to sell goods to the local market; however, import duties will be payable by the recipient.

Establishment of an export processing enterprise

Step 01: Register the investment policy with the Provincial People’s Committee

Step 02: Apply for an Investment Registration Certificate

Step 03: Establish a business and issue an enterprise registration certificate

Step 04: Post the business establishment statement

Step 05: Engrave the seal of the business

Step 06: Publish the seal sample of the enterprise on the Vietnam Single Window

Taxation for Export Processing Enterprises (EPE)

According to the provisions of Clause 4, Article 19 of Circular 78/2014/TT-BTC. Export processing enterprises will enjoy the preferential tax rate of 17% within 10 years.

Moreover, EPEs receive unique treatment when it comes to tax on imports and exports. They do not have to pay any import export duties. However, they are also subject to stringent customs and tax compliance requirements to ensure that businesses do not misuse the preferential treatment.

In case an EPE buys goods from domestic companies, those goods are subject to export duties which is paid by the exported parties in Vietnam. In addition, if an EPE buys goods and services which is used outside of the EPZ, they would still have to pay VAT of 10 percent.

Industrial zones in Vietnam open for investment

Industrial zones in Hanoi City

– Noi Bai Industrial Park – Hanoi.
– Thach That Industrial Park – Hanoi.
– Thang Long Industrial Park – Hanoi.
– Phu Nghia Industrial Park – Hanoi.
– Sai Dong B Industrial Park – Hanoi.
– Hi-tech Bio-Industrial Park – Hanoi.
– Bac Thuong Tin Industrial Park – Hanoi.

Industrial zones in Ho Chi Minh City

– Hiep Phuoc Industrial Park
– Le Minh Xuan Industrial Park
– Vinh Loc Industrial Zone
– Tan Phu Trung Industrial Park
– Phong Phu Industrial Park
– Tan Tao Industrial Park
– Southeast Industrial Park
– Tan Binh Industrial Zone
– Northwest Cu Chi Industrial Park
– An Ha Industrial Park

Industrial zones in Bac Ninh

– Tien Son Industrial Park
– Que Vo Industrial Park
– Que Vo 2 Industrial Park
– Que Vo 3 Industrial Park
– Yen Phong Industrial Park
– Yen Phong 2 Industrial Park
– Dai Dong Industrial Park
– HANAKA Industrial Park
– Nam Son – Hap Linh Industrial Park
– Thuan Thanh Industrial Park 1
– Thuan Thanh 2 Industrial Park
– Thuan Thanh 3 Industrial Park
– Gia Binh Industrial Park
– Gia Binh Industrial Park 2
– Vietnam – Singapore Industrial Park (VSIP)

Industrial zones in Bac Giang

– Dinh Tram Industrial Park
– Song Khe Industrial Park
– Quang Chau Industrial Park
– Van Trung Industrial Park
– Chau Minh Industrial Park
– Hoa Phu Industrial Park
– Viet Han Industrial Park

Industrial zones in Ha Nam

– Dong Van Industrial Park I
– Dong Van II Industrial Park
– Dong Van Industrial Park IV
– Chau Son Industrial Park
– Hoang Dong Industrial Park
– Hoa Mac Industrial Park
– Ascendas . Industrial Park
– Thanh Liem Industrial Park
– Itahan Industrial Park
– Nam Chau Son Industrial Cluster

Industrial zones in Binh Duong

– Vsip 2 Industrial Park
– Bau Bang Industrial Park
– My Phuoc Industrial Park 2
– My Phuoc Industrial Park 3
– Khanh Binh Industrial Park
– Song Than Industrial Park 2
– Song Than Industrial Park 3
– Tan My Industrial Park 2
– Vsip1 Industrial Park
– Visip Industrial Park 2B