Investment Support Fund to be formed to support hi-tech investment and green transformation

The Investment Support Fund, an off-budget state financial fund, would be formed with the function of receiving, managing and using financial support in cash and in-kind to finance and support high-tech investment activities and green transformation.

Such is highlighted in a draft decree on establishing, managing and using the Investment Support Fund designed by the Ministry of Planning and Investment.

Under the draft, the Investment Support Fund would operate with the goal of encouraging and attracting investors and multinational corporations to invest in Vietnam while supporting domestic businesses in sectors prioritized for investment encouragement.

The Fund would come from the state budget’s collection of top-up tax under the Global Anti-Base Erosion Model Rules, deposit interests, and other lawful revenues.

The draft decree specifies that the Fund would provide financial support for two groups of businesses. The first group includes enterprises with investment projects in the manufacture of hi-tech products, hi-tech enterprises and enterprises with hi-tech application projects. To be eligible for support, such enterprises must have projects with an investment capital of over VND 12 trillion (USD 471 million) and annual revenue of over VND 20 trillion (USD 785 million). The second group comprises businesses with investment projects in R&D centers with an investment capital of over VND 3 trillion (USD 118 million).

Eligible enterprises would receive financial support in cash, which would be fully exempt from corporate income tax to cover (i) training and human resource development; (ii) investment in fixed assets; (iii) investment in social infrastructure systems; (iv) manufacture of hi-tech products; and (v) R&D expenses