Vietnam is an attractive market not only for big investors in the region but also around the world. In order to attract investment, besides many advantages of population, market, young labor, low labor cost…, the Vietnamese government also has many special incentives for foreign investors.
In the article below, Law Office Tran Duc Hung and Associates would like to share useful information on this issue.
Types of investment incentives
When doing business in Vietnam, foreign investors will enjoy the incentives in tax rates, income tax, import tax, land use tax, etc. as follows:
– The corporate income tax rate is lower than the normal tax rate for a definite term or for the entire duration of the investment project; exemption and reduction of corporate income tax;
– Exemption from import tax on goods imported to create fixed assets; raw materials, supplies and components for the implementation of investment projects;
– Exemption and reduction of land rent, land use levy and land use tax.
Subjects entitled to investment incentives
Depending on the investment field, investment location, size of the investment project to determine whether or not foreign investors are entitled to investment incentives and the level of specific incentives.
Investment incentives are specified in Vietnam’s 2014 Investment Law and Vietnam’s commitments in bilateral and multilateral international treaties to which Vietnam is a signatory.
Specifically, the beneficiaries of investment incentives include:
– Investment projects in industries or professions eligible for investment incentives or industries or professions with special investment incentives
Investment projects in areas with difficult socio-economic conditions or areas with extremely difficult socio-economic conditions
– Investment projects with a capital scale of VND 6,000 billion or more, disbursed at least VND 6,000 billion within 3 years from the date of issuance of the Investment Registration Certificate or from the date of issuance of a decision on investment ownership. investment promotion for projects that do not have to carry out procedures for granting investment registration certificates;
– Investment projects in rural areas employing 500 or more employees (excluding part-time workers and employees with less than 12 month labor contracts);
– High-tech enterprises, science and technology enterprises, science and technology organizations in accordance with the law on high technology and the law on science and technology.
Doctor Tran Duc Hung
(Head of Law Office Tran Duc Hung and Associates)
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For advice and support on investment incentives, please contact us with the following information:
DHP LAW
Address: L4-09.OT06 Landmark 4 Building, Vinhomes Central Park 720A Dien Bien Phu, Ward 22, Binh Thanh District, City. Ho Chi Minh.Hotline: 0986.938.627Zalo, Viber, Line: 0986.938.627Facebook: facebook.com/DHPLAW
