How to get investment incentives in Vietnam?

What are forms of, and sectors and projects eligible for, investment incentives given by the Vietnamese State?

Under the Investment Law No. 61/2020/QH14 of Vietnam, 

1. Investment incentives1:

Investment incentives may be given in the following forms:

-  Corporate income tax (CIT) incentives, including application of CIT rates lower than ordinary tax rates for a definite period of time or for the whole implementation period of investment projects; exemption from or reduction of CIT and other incentives in accordance with the CIT law;

-  Exemption from import duty on goods imported to create fixed assets; and materials, supplies and components imported for production in accordance with the import duty and export duty law;

-  Land use levy, land rental or land use tax exemption or reduction;

-  Accelerated depreciation, or increase of deductible expenses upon the calculation of taxable incomes. 

2. Subjects eligible for investment incentives2:

Investment incentives will be given to:

-  Investment projects in sectors or trades eligible for investment incentives, including:

+ Hi-tech activities, hi-tech supporting industry products, research and development activities, and production of products formed from outcomes of scientific and technological researches in accordance with the law on science and technology; 

+ Production of new materials, new energies, clean energies and renewable energies; manufacturing of products with an added value of at least 30 percent and energy-efficient products;

+ Manufacturing of electronic products, key mechanical products, agricultural machinery, automobiles and automobile parts; shipbuilding;

+ Manufacturing of products on the List of supporting industry products prioritized for development;

+ Manufacturing of information technology products, software and digital contents;

+ Cultivation, rearing and processing of agricultural, forest and fishery products; forestation and forest protection; salt making; marine fishing and fishing logistics services; production of plant varieties and animal breeds and biotech products;

+ Waste collection, treatment, recycling or reuse;

+ Investment in development, operation and management of infrastructure facilities; development of mass transit in urban centers;

+ Early childhood education, general education, vocational education, and higher education;

+ Medical examination and treatment; production of medicines and medicine materials, and medicine preservation; scientific research into preparation technologies and biotechnologies for producing new medicines; manufacturing of medical equipment and devices;

+ Investment in physical training and sports facilities for people with disabilities or professional athletes; protection and promotion of the value of cultural heritages;

+ Investment in geriatric centers, psychiatric centers, and treatment centers for Agent Orange victims; nursing homes for the elderly, people with disabilities, orphans and homeless and supportless children;

+ People’s credit funds and microfinance institutions;

+ Production of products and provision of services created by or participating in value chains or industrial clusters.

-  Investment projects in areas eligible for investment incentives, including:

+ Geographical areas meeting with difficult socio-economic conditions and geographical areas meeting with extremely difficult socio-economic conditions;

+ Industrial parks, export processing zones, hi-tech parks and economic zones.

-  Investment projects capitalized at VND 6 trillion or more, having disbursed at least VND 6 trillion in three years after obtaining an investment registration certificate or approval of investment policy, and concurrently meeting one of the following criteria: earning an annual turnover of at least VND 10 trillion no later than three years from the year of income generation or employing more than 3,000 workers; 

-  Social housing investment projects; rural investment projects employing at least 500 workers; and investment projects employing workers with disabilities in accordance with the law on people with disabilities;

-  Hi-tech enterprises, science and technology enterprises, and science and technology organizations; projects involving transfer of technologies on the List of technologies encouraged for transfer in accordance with the law on technology transfer; technology incubators and science and technology enterprise incubators in accordance with the law on high technology and the law on science and technology; and enterprises producing/supplying technologies, equipment, products and services to meet environmental protection requirements in accordance with the law on environmental protection;

-  Innovative startup investment projects, innovation centers, and research and development centers; and,

-  Business investment in distribution chains for products of small- and medium-sized enterprises; business investment in technical establishments in support of small- and medium-sized enterprises, and small- and medium-sized enterprise incubators; and business investment in co-working space in support of small- and medium-sized innovative startup enterprises in accordance with the law on support for small- and medium-sized enterprises.

[1]  Article 15.1 of the Law

[2]  Articles 15 and 16 of the Law

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