RAILWAY TRANSPORT BUSINESS IS THE BUSINESS ENTITLED TO INVESTMENT INCENTIVES
The Railway Law No. 06/2017/QH14 of the National Assembly on June 16, 2017 prescribes that railway infrastructure business, railway transport business, urban railway business and railway industry are business lines entitled to investment incentives.
Accordingly, Organizations and individuals engaged in railway activities are entitled to the incentives and supports such as allocation without land use levy of land areas for construction of national railway and urban railway infrastructure; land rental exemption for land areas used for construction of specialized railway infrastructure and railway industrial works; based on practical resources, the State shall provide loans with preferential investment credit interest rates from the State’s investment credit source or loans guaranteed by the Government in accordance with the law on public debt management for investments in the development of national railway and urban railway infrastructure, in the procurement of rolling stocks, machinery and equipment in service of railway maintenance, and in the development of railway industry; Organizations and individuals shall be exempted from import duty on machinery, equipment, spare parts, rolling stocks, raw materials and supplies used for manufacture of machinery and equipment or components, details, parts and accessories of machinery and equipment necessary for railway activities and supplies necessary for construction of railway infrastructure, which cannot be manufactured at home yet. Railway infrastructure, urban railway and railway industry enterprises are entitled to preferential enterprise income tax rates in accordance with the law on enterprise income tax. Investors in the construction of national railway and urban railway infrastructure shall be provided by the State with whole funds for clearance of land areas reserved for railways. Railway infrastructure businesses shall be given exclusive radio frequencies in service of railway transport administration and access to the traction power supply system in service of train operations.
This Law takes effect on July 01, 2018 and replaces the Railway Law No. 35/2005/QH11.
