Investment incentives

Investment Incentives

Criteria

Investment incentives are granted to projects investing in encouraged investment sectors and/or areas; projects with investment capital of at least VND 6,000 billion; projects in rural areas with at least 500 employees; high-tech enterprises; or science and technology companies/organizations.

Investment incentives are provided in the following forms:

  • Corporate income tax (“CIT”) exemption/reduction, preferential CIT rate;
  • Import duty exemption; and
  • Reduction/exemption of land rental.

1. CIT incentives

  • CIT incentives are granted based on regulated encouraged investment sectors and/or areas. CIT incentives are also expanded to incomes from conducting of large-scale projects, with high revenue or use of many employees;
  • CIT incentives are now available to income derived from expanded investment of encouraged investment projects;
  • Preferential tax rates: 10% for 15 years, 17% for 10 years or 15%.
  • Tax exemption, tax reduction: a tax holiday of up to four (4) years and a 50% tax reduction period up to nine (9) years is available, whichever comes first (First profit making year; or the fourth revenue generation year).

2. Import duty incentives

  • Goods temporarily imported, then re-exported, for exhibition purposes if they meet certain requirements;
  • Goods imported to form fixed assets of projects which are included in encouraged projects as prescribed, including: machinery and equipment; certain means of transportation raw material and spare parts M&E, and construction materials which cannot be produced in Vietnam;
  • Certain goods imported for oil and gas activities;
  • Goods temporarily imported (and then re-exported) for carrying out ODA projects;
  • Goods (i.e. material, semi-finished products) imported for implementing export processing contract with foreign parties, etc.

3. Land rental incentives

Projects

Exemption

In the list of investment encouragement sect new business development bases

3 years

Invest in areas of difficult socio-economic conditions

7 years

Invest in areas of special difficult socio- economic conditions; in specially investment encouragement sectors; projects in the list of investment encouragement sectors investing difficult socio-economic areas

11 years

Projects in the list of specially investment encouragement sectors investing in areas of difficult socio-economic conditions or project the list of investment encouragement sectors investing in the areas of special difficult economic conditions

15 years