Nowadays, with the bustle of life and the development of economy, foreign trade, all countries apply market opening and free investment for all domestic and foreign objects. Investment industries are extremely diverse, among them many are prioritized for many reasons: helping the development of economic and social of the country, maintaining the traditional strength of the country, doing environmental protection, new inventions,…Therefore, in order to gain their rights, Customers who want to invest need to understand the provisions of laws on investment incentives. HNLaw & Partners would like to guide you as follows:
1. Forms of investment incentives
- Application of enterprise income tax rates lower than ordinary tax rates for a definite period of time or for the whole implementation duration of investment projects; exemption from or reduction of enterprise income tax
- Exemption from import duty on goods imported to create fixed assets and materials, supplies and components to implement investment projects;
- Exemption from or reduction of land rental, land use levy or land use tax.
2. Subjects entitled to investment incentives:
- Sectors and trades eligible for investment incentives:
+ Hi-tech activities, hi-tech supporting industry products; research and development activities;
+ Production of new materials, new energies, clean energies and renewable energies; manufacture of products with an added value of at least 30% and energy-efficient products;
+ Manufacture of electronic products, key mechanical products, agricultural machinery, automobiles and automobile parts; shipbuilding;
+ Manufacture of supporting industry products for textile-garment and leather-footwear industries, and for the products prescribed at Point c of this Clause;
+ Manufacture of information technology products, software and digital content;
+ Cultivation and processing of agricultural, forest and fishery products; forest planting and protection; salt production; marine fishing and fishing logistic services; production of plant varieties and animal breeds and biotech products;
+ Waste collection, treatment, recycling or re-use;
+ Investment in development, operation and management of infrastructure facilities; development of mass transit in urban centers;
+ Pre-school education, general education and vocational education;
+ Medical examination and treatment; production of drugs and drug materials, major drugs, essential drugs, preventive and curative drugs for social diseases, vaccines, medical bioproducts, herbal medicines and oriental medicines; scientific research into preparation technologies and biotechnologies for producing new drugs;
+ 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, treatment centers for orange agent victims; nursing homes for the elderly, people with disabilities, orphans and street children;
+ People’s credit funds and microfinance institutions.
+ Investment in and operation of distribution chains for products of small- and medium-sized enterprises; technical establishments supporting small- and medium-sized enterprises and small- and mediumsized enterprise incubators and common working areas supporting innovative startup small- and medium-sized enterprises in accordance with the law on support for small- and medium-sized enterprises;
- Geographical areas eligible for investment incentives
+ Geographical areas meeting with difficult or extremely difficult socioeconomic conditions;
+ Industrial parks, export-processing zones, hi-tech parks and economic zones.
- Investment projects capitalized at VND 6,000 billion or more, disbursing at least VND 6,000 billion within 3 years after obtaining an investment registration certificate or investment policy decision;
- Rural investment projects employing at least 500 workers;
- Hi-tech enterprises, science and technology enterprises, and science and technology organizations.
- Investment incentives shall be applied to new investment projects and expanded investment projects.
- Investment incentives for the subjects specified at first, second àn third must not apply to investment projects to exploit minerals or produce or trade in excise tax-liable products or services specified in the Law on Excise Tax, except automobile manufacturing.
Hnlaw & Partners Law Firm