Smart Tech Group Vietnam Joint Stock Company (managed by Smart Tech Group - U.S.) recently submitted a proposal to the Ho Chi Minh City People’s Committee, seeking support policies for businesses listed under Decision No. 38/2020/QD-TTg.

In the document, the investor stated that after surveying industrial parks in Ho Chi Minh City, Smart Tech Group identified two suitable locations: Saigon Hi-Tech Park and Hiep Phuoc Industrial Park (HIPC).

However, due to the insufficient land area at Saigon Hi-Tech Park, only HIPC meets the requirements for land area, utilities, and transportation to accommodate the project’s scale.

According to Smart Tech Group's proposal, the company plans to invest in a project to build an electric storage battery manufacturing plant with a maximum capacity of 5 GWh, to be developed in multiple phases.

The company requires 15 hectares of land in Hiep Phuoc Industrial Park to construct the factory, office buildings, warehouses, and a research center.

The total investment for the 5 GWh project is estimated at $550–850 million, with implementation expected in 2025 or as soon as Ho Chi Minh City authorities allocate the required land.

To facilitate the project at HIPC, the investor has proposed that the Ho Chi Minh City People’s Committee implement policies such as land lease fee exemptions in Hiep Phuoc Industrial Park, similar to incentives granted to investors in Saigon Hi-Tech Park (under Decree No. 10/2024/ND-CP and Decision No. 38/2020/QD-TTg). The proposed exemption period is a minimum of 15 years.

The investor has also requested an exemption from infrastructure usage fees in Hiep Phuoc Industrial Park for at least three years to support the company during the factory construction phase.

Additionally, the investor has proposed a reduction in infrastructure usage fees in HIPC to assist the company during the early stages of factory operations, aiming to provide affordable products for Vietnamese consumers.

Regarding corporate income tax, the investor has proposed applying the current preferential tax policies: corporate income tax exemption for four years, a 50% reduction for the following nine years, and a 10% tax rate for 30 years.

Furthermore, Smart Tech Group has requested exemptions from import taxes on raw materials, components, and supplies for five years; support for training costs for high-quality personnel involved in research and technology transfer; and personal income tax relief for staff and employees at the factory during the first five years of operation.

After receiving Smart Tech Group’s proposal, the Ho Chi Minh City Export Processing and Industrial Zones Authority (Hepza) held a meeting with the investor to discuss mechanisms and policies for strategic investors as outlined in Resolution No. 98/2023/QH15, which pilots specific mechanisms and policies for Ho Chi Minh City development.

Hepza also provided guidance on the list of prioritized industries and trades, procedures for project registration and investor selection, investment incentive policies and conditions, investor obligations, and environmental protection procedures.