Updated investment supports under Investment Law 2020

Criteria

Investment incentives

Investment supports

Objectives

- Investment projects in the sectors and trades eligible for investment incentives;

- Investment project at geographical areas eligible for investment incentives;

- Investment projects capitalized at VND 6 trillion or more, having disbursed at least VND 6 trillion in 3 years after obtaining an investment registration certificate or approval of investment policy, and at the same time meeting one of the following criteria:

+ Earning a total turnover of at least VND 10 trillion in each year after 3 years from the year of generating incomes 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;

- 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; technology incubators and science and technology enterprise incubators; and enterprises producing and supplying technologies, equipment, products and services serving environmental protection requirements;

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

g/ 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 enterprise.

(Clause 2, Article 15)

- Hi-tech enterprises;

- Science and technology enterprises;

- Science and technology organizations;

- Enterprises investing in agriculture and rural areas;

- Enterprises investing in education and law dissemination;

- Other subjects.

(Clause 2, Article 18)

Forms

Enterprise income tax incentives; exemption from or reduction of enterprise income tax and other incentives in accordance with the law on enterprise income tax;

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

- Exemption from or reduction of land use levy, land rental or land use tax;

- Accelerated depreciation, or increase of deductible expenses when calculating taxable incomes.

(Clause 1, Article 15)

- Support for development of technical and social infrastructure systems inside or outside investment project fences;

- Support for human resources training and development;

- Credit support;

- Support for access to production and business grounds; support for relocation of production and business establishments under decisions of state agencies;

- Support for science, technique and technology transfer;

- Support for market development and information provision;

- Support for research and development.

(Clause 1, Article 18)

Procedure

Investors shall themselves determine investment incentives and carry out procedures at tax offices, finance agencies, customs agencies or other competent agencies...

(Article 17)

- Based on master plans already decided or approved in accordance with the planning law, ministries, ministerial-level agencies and provincial-level People’s Committees shall formulate plans on development investment in, and organize the construction of, technical and social infrastructure systems outside the fences of industrial parks, export processing zones, hi-tech parks and functional sub-zones of economic zones.

- The State shall support part of development investment capital from the state budget and preferential credit capital for the comprehensive development of technical and social infrastructure systems inside and outside the fences of industrial parks in geographical areas meeting with difficult socio-economic conditions or geographical areas meeting with extremely difficult socio-economic conditions.

- The State shall support part of development investment capital from the state budget and preferential credit capital and apply other methods to raise capital for the construction of technical and social infrastructure systems inside economic zones and hi-tech parks.

(Article 19)