Proposed incentives for manufacturing industry serving the electricity sector

Đề xuất ưu đãi cho công nghiệp chế tạo phục vụ ngành điện lực

Incentives include: exemption of import tax on imported goods and 0% import tax rate on raw materials, supplies and components that cannot be produced domestically. Electrical equipment manufacturing projects are exempted from or have reduced land use fees, land rents and land use taxes according to the provisions of the law on land for key mechanical product manufacturing industries and occupations. At the same time, enterprises are allowed to quickly depreciate and increase the deductible expenses when calculating taxable income for electrical equipment manufacturing projects according to the provisions of the law on accounting.

The Ministry of Industry and Trade said that according to the adjusted Power Plan VIII approved by the Prime Minister in Decision No. 768/QD-TTg dated April 15, 2025, the investment demand in the electricity sector is very large, specifically as follows:

Period 2026 - 2030: Total investment capital for developing power sources and transmission grid is equivalent to 136.3 billion USD, of which: investment for power sources is about 118.2 billion USD, power transmission grid is about 18.1 billion USD.

Orientation for the period 2031 - 2035: Estimated capital demand for investment in developing power sources and transmission grids is equivalent to 130.0 billion USD, of which: investment in power sources is about 114.1 billion USD, power transmission grid is about 15.9 billion USD, will be determined in the following plans.

Orientation for the period 2036-2050: Estimated capital demand for development investment in power sources and transmission grid is equivalent to 569.1 billion USD, of which: investment in power sources is about 541.2 billion USD, transmission grid is about 27.9 billion USD, will be determined in the next planning.

If Vietnam has a reasonable policy to promote the localization of domestic electromechanical equipment, especially preferential policies in purchasing designs and receiving technology transfer for production lines and equipment within the scope of power source and grid projects, it can create a market for electromechanical products and services for domestic enterprises of about 67.4 billion USD (from 2021-2030) and 199.6-255.6 billion USD (from 2030-2050), only calculating the localization level of about 50% including construction and installation.

Thus, it can be seen that the development demand of the electricity industry is very large. This has raised the requirement and necessity to quickly promote the development of the manufacturing industry in the electricity sector to contribute to ensuring national energy security, and at the same time make the manufacturing industry in the electricity sector an important production sector, contributing to socio-economic development, national defense and security.

Source: https://vtv.vn/de-xuat-uu-dai-cho-cong-nghiep-che-tao-phuc-vu-nganh-dien-luc-100251010091925391.htm