Forms of Investment Incentives and Eligible Entities for Investment Incentives.

1. Forms of Investment Incentives:

The forms of investment incentives are specifically regulated in Clause 1, Article 15 of the 2020 Investment Law, including the following:

• Corporate income tax incentives, including applying lower corporate income tax rates than the regular rate for a specified period or for the entire duration of the investment project; tax exemptions, tax reductions, and other incentives according to the law on corporate income tax.

• Exemption from import duties on goods imported to create fixed assets; raw materials, supplies, and components imported for production according to the law on export and import duties.

• Exemption or reduction of land use fees, land rental fees, and land use taxes.

• Accelerated depreciation, increasing the deductible expenses when calculating taxable income.

  
  

2. Entities Eligible for Investment Incentives:

According to Clause 2, Article 15 of the 2020 Investment Law, entities eligible for investment incentives include:

• Investment projects in industries, occupations eligible for investment incentives or special investment incentives (Appendix II of Decree 31/2021/ND-CP).

• Investment projects in areas with difficult socio-economic conditions or areas with particularly difficult socio-economic conditions (Appendix III of Decree 31/2021/ND-CP).

• Investment projects with a capital scale of VND 6,000 billion or more, disbursing at least VND 6,000 billion within three years from the date of receiving the investment registration certificate or investment policy approval, and meeting one of the following criteria: having total revenue of at least VND 10,000 billion per year by the latest three years from the year of revenue, or employing more than 3,000 workers.

• Investment projects for building social housing; investment projects in rural areas using 500 or more workers; investment projects employing disabled people as defined by the law on disabled persons.

• High-tech enterprises, scientific and technological enterprises, scientific and technological organizations; projects with technology transfer under the list of technologies encouraged for transfer as regulated by the law on technology transfer; technology incubators, scientific and technological enterprise incubators according to the laws on high technology, and the law on science and technology; enterprises producing, providing technologies, equipment, products, and services serving environmental protection as stipulated by the law on environmental protection.

• Investment projects for creative startups, innovation centers, research, and development centers.

• Investment in business distribution chains for small and medium-sized enterprises (SMEs); investment in business technical support facilities for SMEs, business incubators for SMEs; investment in co-working spaces supporting SMEs for creative startups as stipulated by the law on supporting SMEs.

  
  

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