Vietnam Investment Incentives
According to the Law on Investment of Vietnam, the Vietnamese government has provided a series of investment incentives for qualified investment projects, including preferential corporate income tax, exemption from import duty, reduction or exemption of land rental and land use tax.
Investment projects that meet one of the following criteria may be eligible for investment incentives:
- Investment projects in encouraged industries (for example high-tech industry, education industry, medical care industry, infrastructure industry, etc.) as specified in Section 1 of Article 16 of the Law on Investment.
- Investment projects located in encouraged areas (for example areas with difficult or extremely difficult socio-economic conditions, industrial zones, export processing zones, high-tech zones, and economic zones) as specified in Section 1 of Article 16 of the Law on Investment.
- Large investment projects with a total investment capital of more than VND6 trillion and contribute at least VND6 trillion within three years from the issuance date of the investment registration certificate, and at the same time meet any of the following criteria: the minimum revenue is VND10 trillion per annum by the fourth year of operations at the latest; orthe minimum revenue is VND10 trillion per annum by the fourth year of operations at the latest; or the minimum headcount is 3,000 by the fourth year of operations at the latest.
- Social housing construction projects, investment projects located in rural areas and employing at least 500 employees, investment projects that employ persons with disabilities in accordance with regulations of law on persons with disabilities.
- High-tech enterprises, science and technology enterprises and science and technology organizations, projects involving transfer of technologies on the list of technologies the transfer of which is encouraged in accordance with regulations of the Law on Technology Transfer No. 07/2017/QH14; technology incubators, science and technology enterprise incubators prescribed by the Law on High Technology No. 21/2008/QH12, and the Law on Science and Technology No. 29/2013/QH13, enterprises manufacturing and providing technologies, equipment, products and services with a view to satisfaction of environment protection requirements prescribed by the Law on Environmental Protection No. 55/2014/QH13.
- Innovation start-up projects, national innovation centers and research and development centers.
- Business investment in small and medium-sized enterprises?product distribution chain; business investment in technical establishments supporting small and medium-sized enterprises, small and medium-sized enterprise incubators; business investment in co-working spaces serving small and medium-sized enterprises and innovation startups prescribed by the Law on Small and Medium-Sized Enterprises.
- Investment projects, innovation centers, R&D centers with a total investment capital of VND3 trillion or more and contribute at least VND1 trillion within three years from the issuance date of the investment registration certificate.
- Investment projects in special preferential industries with total investment capital of VND30 trillion or more and contribute at least VND10 trillion within three years from the issuance date of the investment registration certificate.
Investment incentives granted to qualified investment projects mainly include:
- Corporate Income Tax (CIT) Incentives: Preferential CIT rate for a definite period or for the entire duration of the investment project; exemption from CIT and reduction of CIT for a definite period. For example, investment projects located in high-tech zones may enjoy a 10% CIT rate for 15 years starting from the date of operation, CIT exemption for 4 years starting from the first profitable year (However, the CIT exemption period will be deemed to automatically start from the fourth year if the enterprises has been making a loss for the first three years of operation.), and a 50% reduction of the CIT payable for 9 years following the CIT exempted period.
- Import Duty Incentives: Exemption from import duty in respect of goods imported to form fixed assets, raw materials and components for implementation of an investment project; and
- Incentive relating to land rental and land use tax: Exemption or reduction of land rental and land use tax.
KAIZEN Group is equipped with experienced and highly qualified professional consultants and is therefore well positioned to provide professional advices and services in respect of the formation and registration of company, application for various business licences and permits, company compliance, tax planning, audit and accounting in China. Please call and talk to our professional consultants for details.
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