Special Economic Zone in Vladivostok EASTERN GATEWAY TO RUSSIA Special Economic Zone in Vladivostok : SEZ Profile Location: Vladivostok-City (Primorsky region, Russian Far East) Start of operations : September – 2014 Key focus : Logistic & assembly operations to provide Korean& Japanese goods for the Russian market Car assembly plants Component manufactures Assembly producers of electronics and equipment VLADIS Potential Residents: Managing company: Special Economic Zone in Vladivostok : Location The new SEZ is located in Vladivostok – capital of Primorsky region and one of the largest city in Russian Far East with total population around 600 thousand people. Primorsky region has a land border with China and North Korea and sea exit through Sea of Japan to borders of Japan, South Korea and other Asia-Pacific Region countries. Vladivostok is the main transportation hub of Far East region and closest Russian port to Japan and Korea. Primorsky region is a spot of transit ways from Europe to East Asia, from NorthEast Asia to North America. There are more then 414 mln people living within 1000 km from Vladivostok (around 300 mln of them in cities). It is the only city with such environment in Russia. GDP within the same space is 6,6 trillion US dollars annually, what puts together 9,5% of global gross product. 1000 km Special Economic Zone in Vladivostok : Location The new SEZ territory has direct connection with Russian Trans-Siberian Railway– railway to the European part of Russia. Ground transportation Deep sea transportation Transit time from Korea or Japan to Vladivostok 2-4 days Transit time from Vladivostok to European part of Russia 10-12 days Transit time from Korea or Japan to European part of Russia by deep sea 45 days Special Economic Zone in Vladivostok : Location SEZ is placed inside the city, near Lugovaya square, one of the main transport hubs of Vladivostok, close to city center. Own berth, port territory and railroad, which is connected to Trans-Siberian railway, are placed within SEZ territory. Vladivostok International airport is placed 50 km away. Vladivostok International Airport has daily direct flights to Seoul and connection flights to all APEC countries Special Economic Zone in Vladivostok : Logistic Infrastructure Container terminal: Total capacity : 120,000 TEUs / year Berth parameters Typical vessel • • • Length: 185 m Depth: 7.0 m Customs processing within 2 hours Capacity: 800TEU Special Economic Zone in Vladivostok : Logistic Services Sea Freight Overall planning of vessel operations Integrated shipping & production schedules Continuous containers turnover Vehicle CBU Yard Visual inspection of cargo Vehicle CBU storage Wagon loading & dispatching Container terminal operations Vessel loading/unloading operations Container sorting Customs clearance Storage Railway and Auto Transit Vehicle and container TSR transportation Wagon management Inland trucking to destination Cargo insurance & armed security Special Economic Zone in Vladivostok : Industrial Infrastructure Starting from 2018 new industrial park building & offices ( 50 000 m2) will be available for residents of SEZ Vladivostok. SEZ Vladivostok will provide «plug&play» concept for potential assembly projects : industrial capacities for rent+ full utility management. Other SEZ services : staff recruitment and training service, GR consulting and support, office management, site development & construction. Special Economic Zone in Vladivostok : Business escorting One-stop service is provided for anyone interested in establishing business inside Vladivostok SEZ. Our specialist will escort business from establishing legal entity till start of operations including acquirement of all needed certificates, licenses and permissions. Special Economic Zone in Vladivostok : Industrial Infrastructure Customs checkpoint 2 floor production building 50 000 square meters Electric Power Station 110/35/6 kV Own railway tracks with all necessary infrastructure and direct connection to the TransSiberian Railway Container yard, berth, customs Customs checkpoint Heating Station Special Economic Zone in Vladivostok : Social Infrastructure With the establishment of Far East Federal University Vladivostok has become new global educational center in Russia. There are 25 initial professional education institutions, 25 secondary professional education institutions, 18 branches of higher educational institutions and 9 higher educational institutions inside Primorsky region. Within the city there is an international school for children from 5th till 12th grade which works according to the International Baccalaureate standards and is certified to issue international certificates after passing exams of Cambridge university: YLM (Young Learners Movers), Flyers, KET, PET, FCE. Special Economic Zone in Vladivostok : Social Infrastructure The city also has well developed residential areas, modern healthcare centers, cultural infrastructure, opera. Special Economic Zone in Vladivostok : Social Infrastructure There are modern hotels, shopping malls, restaurants and sport utilities in Vladivostok. Special Economic Zone in Vladivostok : Benefits for residents Income taxes (usual 20%) Property tax (usual 2,2%) Land tax (usual 1,5%) Free warehouse customs regime 2% During first 5 tax periods, beginning from the first tax period which showed profit, or after 3 years of operation. 12% 15,5% During 5 next tax periods. Till the end of SEZ existence 0% -10 years beginning from the moment of property registration. 0% - 5 уеаrs beginning from the land registration No custom duties and VAT for goods imported to the territory of SEZ Special Economic Zone in Vladivostok : Getting resident status Establish legal entity on the territory of Primorsky region Fill in application form and prepare Business Plan according to the Ministry of Economy requirements. Investments not less then 120 mln RUB Approval of Business Plan by Ministry of Economy 10 days to pass it to Expert Board 30 days to be approved by Expert Board 10 days to prepare agreement between Ministry of Economy, zone resident and Managing Company Agreement commences on the date of execution Special Economic Zone in Vladivostok : Prospective clusters Auto components Due to realizing of automotive cluster conception and high demands of secondary market. Medical equipment Due to high demands for modernization, Expected prohibition for Government procurements of foreign medical equipment. Household appliances Due to long-term import barriers. Special Economic Zone in Vladivostok : Prospective clusters Construction machinery Due to planned realization of large infrastructural projects in Far East and Siberia. IT equipment Due to expected prohibition for Government procurements of foreign equipment. Special Economic Zone in Vladivostok : Future development According to the legislation of Russian Federation special economic zone may consist of 3 independent land pieces. If investor is interested in establishing business within Primorsky region it is possible to select a piece of land or industrial facility and join it to the special economic zone regime.
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