Numerous incentives exist to encourage corporations to invest in inland waterway infrastructure

DNHN - The Department of Waterways intends to exempt water surface rent for the duration of the lease and land rent for the first 15 years following the date of the State's land lease to firms undertaking port development projects.

The Vietnam Inland Waterway Administration has just submitted to the Ministry of Transport a plan to implement the Plan on Inland Waterway Infrastructure for the 2021-2030 period, with a vision to 2050, approved by the Prime Minister in Decision No. 1829/QD-TTg dated October 31, 2021. 

This unit will investigate a variety of preferential procedures and policies aimed at attracting investment in order to build the port system and waterway infrastructure in accordance with the plan. 

The Vietnam Waterway Administration proposes to exempt water surface rent for the duration of the lease, to exempt land rent for the first 15 years following the date of the State's land lease, and to reduce land rent by 50% for the next seven years for enterprises and cooperatives engaged in port investment and development projects.  

Bui Thien Thu, director of the Vietnam Inland Waterway Administration, stated that investment capital poured into the inland waterway sector between 2010 and 2020 was extremely modest, accounting for only 1.4 percent of total transportation sector investment and consisting of only three investment projects. For many years, inland waterway infrastructure has lacked the attention and investment necessary to fulfil its function in the national transportation system. 

Many investment projects have not been synchronized between static and air traffic, so they cannot promote their effectiveness, creating transport bottlenecks on the main transport corridors in the Red River Delta, Southeast and Mekong River Delta regions. Limiting the clearance height of the bridges, making it difficult to put into operation barges with large carrying capacity. For example, bridges over Dong Nai river, Binh Loi bridge in the south, Duong bridge in the north... 

The Department of Waterways proposes to exempt water surface rent for the entire lease term, and exempt land rent for the first 15 years from the date on which the land is leased by the State. At the same time, 50% reduction of land rent in the next 7 years for enterprises and cooperatives with projects on investment and development of ports. 

Additionally, import taxes are waived on loading and unloading equipment for containers, bulk cargo, and specialty commodities that cannot be manufactured domestically in order to increase seaport capacity for loading and unloading. 

The Vietnam Inland Waterway Administration also proposes free seaport infrastructure for goods transported by inland waterways. This issue has also been proposed by a series of domestic industry associations when Ho Chi Minh City collects seaport infrastructure fees from April 1, 2022. 

Additionally, the local budget is planned to provide vocational training in watercraft operator, repair, and operation of watercraft engines for students attending college, intermediate, and elementary schools in extremely difficult communes, border communes and safe zone communes. 

Prioritizing the allocation of non-business capital for the maintenance of the national waterway system in the period 2022-2026 in the direction of rising by 1.3 times the previous year in order to maintain infrastructure and minimise road traffic accidents. 

The annual budget for economic non-business expenses shall be used to develop a shared information technology system to support waterway sector management, including information technology infrastructure and information security assurance; and management of waterway infrastructure, vehicles, crew, and transportation... 

 HH