Vietnam Investment Incentives
1. Forms of incentives:
- Lower corporate income tax rates for a given period of time or throughout the life of the project; exemption/reduction of corporate income tax;
- Exemption or reduction of import tax for goods imported as fixed assets; materials, supplies, and parts used for the project;
- Exemption and reduction of the land rental, land use fees, or land use tax.
2. Projects eligible for investment incentives:
- Projects in the areas of investment incentives as listed below. (Decree No. 118/2015);
- Projects investing in certain geographical areas;
- Any project with a capitalization of at least VND 6,000 billion, or at least VND 6,000 billion, will be disbursed within 3 years from the date of issuance of the investment registration certificate or investment policy decision;
- Any investment projects in rural areas employ at least 500 workers;
- High-tech companies, science and technology companies, and science and technology organizations.
Investment incentives are applicable to new investment projects and expansion projects. Specific levels of each type of incentive must comply with land and tax laws.
Investment incentives for the subjects mentioned above of this Article shall not apply to investment projects on mineral exploitation or production or trading of products or services subject to special consumption tax specified in the Law. Special excise tax, excluding automobile production.
3. Sectors and trades eligible for investment incentives
- High-tech activities, high-tech supporting industrial products; research and development activities;
- Producing new materials, new energy, clean energy, and renewable energy; production of products with 30% or more added value and energy-saving products;
- Manufacture of electronic products, key mechanical products, agricultural machines, cars, and auto parts; shipbuilding;
- Manufacture of products of supporting industry for the textile and garment, footwear, and the products specified at Point c of this Clause;
- Producing information technology products, software, and digital content;
- Farming and processing agricultural, forestry, and aquatic products; planting and protecting forests; salt production; fishing and fishing logistics; production of plant varieties, domestic animals, and biotechnology products;
- Collection, treatment, recycling or reuse of waste;
- Infrastructure development investment, operation, and management; develop public transport in urban centers;
- Preschool education, general education, and vocational education;
- Healthcare; production of drugs and medicinal ingredients, major drugs, essential drugs, drugs for prevention and treatment of social diseases, vaccines, medical bio-products, traditional medicines, traditional medicines; scientific research, preparation technology, biotechnology for the production of new drugs;
- Investment in physical training and sports facilities for people with disabilities and professional athletes; protect and promote the values of cultural heritages;
- Investment in geriatric and psychiatric centers, centers for the treatment of Agent Orange victims; nursing homes for the elderly, the disabled, orphans, and homeless children;
- People’s credit funds and microfinance institutions.
4. Geographical areas eligible for investment incentives
- Geographical Areas with difficult or extremely difficult socio-economic conditions;
- Industrial parks, export processing zones, hi-tech zones, economic zones.
Based on the above areas with investment incentives, the Government shall issue, amend, and supplement the list of geographical areas subject to investment incentives.
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