List of Special Investment Incentive Sectors 2024? How are the forms of investment incentives regulated?
List of Industries with Special Investment Incentives for 2024
The list of industries eligible for investment incentives is stipulated in Appendix II issued together with Decree 31/2021/ND-CP, specifically:
(1) High-tech, Information Technology, Supporting Industries
- Application of high technology included in the list of high technologies prioritized for development investment as decided by the Prime Minister of the Government of Vietnam.
- Production of products included in the list of high-tech products encouraged for development as decided by the Prime Minister of the Government of Vietnam.
- Production of products included in the list of supporting industry products prioritized for development according to the Government of Vietnam's regulations on supporting industry development.
- High-tech incubation, high-tech enterprise incubation; venture capital investment for high-tech development; application, research, and development of high technology according to legal regulations on high technology; production of biotechnology products; high-tech personnel training; provision of high-tech services.
- Production of software products, digital information content products, key information technology products, software services according to legal regulations on information technology; production of cybersecurity products and provision of cybersecurity services meeting the conditions prescribed by legal regulations on cybersecurity; production of products derived from scientific and technological results according to legal regulations on science and technology.
- Production of renewable energy, clean energy, energy from waste disposal.
- Production of composite materials, lightweight building materials, rare and precious materials.
- Production of products included in the list of key mechanical products as decided by the Prime Minister of the Government of Vietnam.
(2) Agriculture
- Planting, caring for, nurturing, protecting, and developing forests; developing production forests in barren land and mountainous areas, planting large timber forests, and converting small timber forests into large timber forests; developing non-timber forest products, and restoring natural forests.
- Raising, processing, preserving agricultural, forestry, and aquatic products, and processing non-timber forest products.
- Production, propagation, and breeding of plants and animals, forestry plant varieties, aquaculture species, and development of high-tech forestry plant varieties.
- Production, exploitation, and refining of salt.
- Offshore fishing combined with the application of modern fishing methods and tools; fishery logistics services; construction of fishing boat-building bases and the construction of fishing boats.
- Maritime rescue services.
- Investment in research and production of food biotechnology products.
- Production of wooden products; production of artificial boards, including: plywood, glued laminated timber, MDF boards.
(3) Environmental Protection, Infrastructure Construction
- Collection, treatment, recycling, and reuse of centralized waste.
- Construction and business of industrial park infrastructure, export processing zones, high-tech zones, and functional areas in economic zones.
- Investment in the development of water plants, power plants, and water supply and drainage systems; bridges, roads, infrastructure; railway transport and industry; airports, seaports, inland waterway ports; airports, stations, and other special infrastructure projects as decided by the Prime Minister of the Government of Vietnam.
- Development of public passenger transport in urban areas.
- Investment in the construction and management, and business of markets in rural areas.
- Investment in the development, operation, and management of technical infrastructure for industrial clusters.
(4) Culture, Society, Sports, Healthcare
- Construction of social housing and resettlement housing.
- Investment in business facilities to perform epidemic prevention and hygiene.
- Scientific research on formulation technology, biotechnology to produce new medicines, new veterinary medicines, vaccines, biological preparations used in veterinary medicine.
- Production of raw materials for drugs and essential drugs, disease prevention drugs, vaccines, medical biological products, herbal medicines, traditional medicines; production of drugs using advanced technologies and biotechnology to meet international GMP standards; production of packaging that directly contacts drugs.
- Investment in Methadone production facilities.
- Investment in business centers for high-performance sports training, and training centers for disabled sports; construction of sports facilities with equipment and means to meet the requirements of organizing international competitions; professional sports practice and competition facilities.
- Investment in business centers for geriatrics, psychiatry, treatment of patients affected by Agent Orange; centers for caring for the elderly, disabled, orphans, and homeless children.
- Investment in business centers for disease prevention - education - social labor; smoking cessation facilities; HIV/AIDS treatment facilities; public drug rehabilitation centers; private drug rehabilitation centers; community drug addiction counseling and treatment support points at the district level.
- Investment in business national museums, local cultural centers; ethnic music and dance troupes; theaters, studios, film production bases, film developing studios; art - photography exhibition centers; production, manufacturing, and repair of ethnic musical instruments; conservation of museums, local cultural centers, and art schools; traditional craft villages showcasing and developing traditional occupations; investment in traditional folk performing arts; investment in the Vietnam National Library, provincial public libraries, city libraries directly under the Central Government, and libraries with important roles.
- Investment in community-based gender violence prevention and support facilities for sex workers.
List of industries with special investment incentives for 2024? What are the forms of investment incentives?
What are the forms of investment incentives?
Based on Clause 1, Article 15 of the Law on Investment 2020, the forms of investment incentives are as follows:
- Preferential corporate income tax, including the application of a lower corporate income tax rate than the normal tax rate for a limited or entire period of project implementation; tax exemption, tax reduction, and other incentives according to the law on corporate income tax;
- Exemption from import tax on imported goods to create fixed assets; raw materials, supplies, and components imported for production according to the law on export and import tax;
- Exemption and reduction of land levy, land rent, and land use tax;
- Accelerated depreciation, increased deductible expenses when calculating taxable income.
Who is eligible for investment incentives according to the Law on Investment 2020?
Based on Clause 2, Article 15 of the Law on Investment 2020, the subjects eligible for investment incentives are as follows:
- Investment projects in the industries and trades eligible for investment incentives specified in Clause 1, Article 16 of this Law;
- Investment projects in investment incentive areas specified in Clause 2, Article 16 of this Law;
- Investment projects with a capital scale of 6,000 billion VND or more, with a minimum disbursement of 6,000 billion VND within 3 years from the date of issuance of the Investment Registration Certificate or investment policy approval, and meeting one of the following criteria: having a total minimum annual revenue of 10,000 billion VND within no later than 3 years from the year of revenue generation or employing more than 3,000 employees;
- Investment projects for the construction of social housing; investment projects in rural areas employing 500 or more employees; investment projects employing disabled persons according to the law on persons with disabilities;
- High-tech enterprises, scientific and technological enterprises, scientific and technological organizations; projects transferring technologies included in the list of technologies encouraged for transfer according to the law on technology transfer; high-tech and scientific and technological enterprise incubation facilities according to the law on high technology and the law on science and technology; enterprises producing, supplying technologies, equipment, products, and services for environmental protection requirements according to the law on environmental protection;
- Investment projects for innovative startups, innovation centers, and research and development centers;
- Investment in business networks distributing products of small and medium enterprises; investment in technical support facilities for small and medium enterprises, business incubation facilities for small and medium enterprises; investment in co-working spaces supporting innovative startups for small and medium enterprises according to the law on supporting small and medium enterprises.
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