HANOI, June 7 (Xinhuanet) -- The Chu Lai Open Economic Zone, the first of its kind in Vietnam, has just offered tax and rental incentives to lure more foreign and local investors.

    Foreign and local investors in the zone in central Quang Nam province are exempted from land rentals, which range from 0.01 to 200 US dollars per square meter per annum, until 2015, providing their projects become operational before December 31, 2005, the zone's management board told Xinhua on Monday.

    They are also exempted from corporate income tax, which stands at 10 percent, for the first eight profitable years, and offered a50-percent reduction for following nine years.

    Besides, investors and workers in the zone can enjoy other preferential treatment relating to accommodation, travel and worker training. Overseas Vietnamese and foreigners permanently residing in Vietnam are allowed to buy residential houses in the zone.

    By late last month, the zone, which was established last June, had attracted 102 domestic and foreign-invested projects worth nearly 1.2 billion US dollars, including roughly 541 million dollars worth of foreign investment, which focus on industry and tourism.

    Among foreign investors in the zone, Chinese ones had pledged to invest 322.1 million dollars, accounting for 27 percent of the total, the board said, adding that Chinese Hong Kong investors alone had total investment of 124.8 million dollars.

    Situated next to the national road No. 1A and the West-East transportation corridor of Southeast Asia, the zone is 860 km fromthe capital of Hanoi, 865 km from Ho Chi Minh City, and 400 km to South Laos and Northeast Thailand. Enditem