What is list of business lines and areas eligible for investment incentives in Vietnam?
What is list of business lines and areas eligible for investment incentives in Vietnam? Question from Mr. Hieu (Binh Duong)
What forms of investment incentives are there in Vietnam?
Pursuant to Clause 1, Article 15 of the Investment Law 2020, which stipulates forms and objects for application of investment incentives:
Forms and objects for application of investment incentives
1. Forms of investment incentives:
a) Corporate income tax incentives, including application of a lower rate of corporate income tax for a certain period of time or throughout the investment project execution; exemption from and reduction of tax and other incentives prescribed by the Law on Corporate Income Tax.
b) Exemption from import tax on goods imported to form fixed assets; raw materials, supplies and components for manufacturing purposes in accordance with regulations of law on import and export tax;
c) Exemption from and reduction of land levy and land rents;
d) Accelerated depreciation, increasing the deductible expenses upon calculation of taxable income.
...
Thus, investment incentives are given in the following forms:
- Corporate income tax incentives are as follows:
+ application of a lower rate of corporate income tax for a certain period of time or throughout the investment project execution;
+ exemption from and reduction of tax and other incentives prescribed by the Law on Corporate Income Tax;
- Exemption from import tax on goods imported to form fixed assets;
- Exemption from and reduction of land levy and land rents;
- Accelerated depreciation, increasing the deductible expenses upon calculation of taxable income.
What is list of business lines and areas eligible for investment incentives in Vietnam? (Image from the Internet)
Which are business lines eligible for investment incentives in Vietnam?
Clause 1, Article 16 of the Investment Law 2020 stipulates that business lines and areas eligible for investment incentives are as follows:
1. Business lines eligible for investment incentives:
a) Hi-tech activities, hi-tech supporting industry products, research, manufacturing and development of products formed from science and technology results in accordance with regulations of law on science and technology;
b) Manufacturing of new materials, new energy, clean energy, renewable energy; manufacturing of products with an added value of 30% or more; energy-saving products;
c) Manufacturing of key electronics, mechanical products, agricultural machinery, automobiles, automobile parts; shipbuilding;
d) Manufacturing of products on the List of prioritized supporting industry products;
dd) Manufacturing of IT products, software products, digital contents;
e) Breeding, growing and processing of agriculture products, forestry products, aquaculture products; afforestation and forest protection; salt production; fishing and fishing logistics services; production of plant varieties, animal breeds and biotechnology products;
g) Collection, treatment, recycling or re-use of waste;
h) Investment in development, operation, management of infrastructural works; development of public transportation in urban areas;
i) Pre-school education, general education, vocational education, higher education;
k) Medical examination and treatment; manufacturing of medicinal products and medicinal materials, storage of medicinal products; scientific research into preparation technology and biotechnology serving creation of new medicinal products; manufacturing of medical equipment;
l) Investment in sports facilities for the disabled or professional athletes; protection and promotion of value of cultural heritage;
m) Investment in geriatric centers, mental health centers, treatment for agent orange patients; care centers for the elderly, the disabled, orphans, street children;
n) People's credit funds, microfinance institutions;
o) Manufacturing of goods and provision of services that create or participate in value chains and industry linkage clusters.
Which areas are eligible for investment incentives in Vietnam?
Pursuant to Clause 2, Article 16 of the Investment Law 2020, regulations on business lines and areas eligible for investment incentives:
Business lines and areas eligible for investment incentives
...
2. Areas eligible for investment incentives:
a) Disadvantaged areas and extremely disadvantaged areas;
b) Industrial parks, export-processing zones, hi-tech zones and economic zones.
...
Thus, the areas eligible for investment incentives are the following areas:
- Areas with difficult socio-economic conditions, areas with particularly difficult socio-economic conditions;
- Industrial parks, export processing zones, high-tech zones, economic zones.
In addition, in Appendix 3, the List of investment incentive areas issued with Decree 31/2021/ND-CP stipulates areas eligible for investment incentives including:
|
No. |
Proving |
Extremely disadvantaged areas |
Disadvantaged areas |
|
1 |
Bac Kan |
All districts, district-level towns and Bac Kan city |
|
|
2 |
Cao Bang |
All districts and Cao Bang city |
|
|
3 |
Ha Giang |
All districts and Ha Giang city |
|
|
4 |
Lai Chau |
All districts and Lai Chau city |
|
|
5 |
Son La |
All districts and Son La city |
|
|
6 |
Dien Bien |
All districts, district-level towns and Dien Bien City |
|
|
7 |
Lao Cai |
All districts and Sapa town |
Lao Cai city |
|
8 |
Tuyen Quang |
Na Hang, Chiem Hoa, Lam Binh districts |
Ham Yen, Son Duong, Yen Son districts and Tuyen Quang city |
|
9 |
Bac Giang |
Son Dong district |
Luc Ngan, Luc Nam, Yen The, Hiep Hoa district |
|
10 |
Hoa Binh |
Da Bac, Mai Chau districts |
Kim boi, Luong Son, Lac thuy, Tan Lac, Cao Phong, Lac Son, Yen Thuy districts and Hoa Binh city |
|
11 |
Lang Son |
Binh Gia, Dinh Lap, Cao Loc, Loc Binh, Trang Dinh, Van Lang, Van Quan, Bac Son, Chi Lang, Huu Lung districts |
|
|
12 |
Phu Tho |
Thanh Son, Tan Son, Yen Lap districts |
Doan Hung, Ha Hoa, Phu Ninh, Thanh Ba, Tam Ngong, Cam Khe districts |
|
13 |
Thai Nguyen |
Vo Nhai, Dinh hoa, Dai Tu, Phu Luong, Dong Hy districts |
Phu Binh district, Pho Yen town |
|
14 |
Yen Bai |
Luc Yen, Mu Cang Chai, Tram Tau districts |
Tran Yen, Van Chan, Van Yen, Yen Binh districts, Nghia Lo town |
|
15 |
Quang Ninh |
Ba Che, Binh Lieu, Coto districts and other islands in the province |
Van Don, Tien Yen, Hai Ha, Dam Ha districts |
|
16 |
Hai Phong |
Bach Long Vy, Cat Hai islands |
|
|
17 |
Ha Nam |
|
Ly Nhan, Thanh Liem, Binh Luc districts |
|
18 |
Nam Dinh |
|
Giao Thuy, Xuan Truong, Hai Hau, Nghia Hung districts |
|
19 |
Thai Binh |
|
Thai Thuy, Tien Hai districts |
|
20 |
Ninh Binh |
|
Nho Quan, Gia Vien, Kim Son, Tam Diep, Yen Mo districts |
|
21 |
Thanh Hoa |
Muong Lat, Quan Hoa, Quan Son, Ba Thuoc, Lang Chanh, Thuong Xuan, Cam Thuy, Ngoc Lac, Nhu Thanh, Nhu Xuan districts |
Thach Thanh, Nong Cong districts |
|
22 |
Nghe An |
Ky Son, Tuong Duong, Con Cuong, Que Phong, Quy Hop, Quy Chau, Anh Son districts |
Tan Ky, Nghia Dan, Thanh Chuong districts and Thai Hoa town |
|
23 |
Ha Tinh |
Huong Khe, Huong Son, Vu Quang, Loc Ha, Ky Anh districts |
Duc Tho, Nghi Xuan, Thach Ha, Cam Xuyen, Can Loc districts and Ky Anh town |
|
24 |
Quang Binh |
Tuyen Hoa, Minh Hoa, Bo Trach districts |
Other districts and Ba Don town |
|
25 |
Quang Tri |
Huong Hoa, Da Krong discts, Con Co island and other islands in the province |
Other districts |
|
26 |
Thua Thien Hue |
A Luoi, Nam Dong districts |
Phong Dien, Quang Dien, Phu Loc, Phu Van districts and Huong Tra town |
|
27 |
Da Nang |
Hoang Sa Archipelago |
|
|
28 |
Quang Nam |
Dong Giang, Tay Giang, Nam Giang, Phuoc Son, Bac Tra My, Nam Tra My, Hiep Duc, Tien Phuoc, Nui Thanh (Tam Son, Tam Thanh, Tam My Dong, Tam My Tay, Tam Tra, Tam Hai communes), Nong Son, Thang Binh (Binh Lanh, Binh Tri, Binh Dinh Bac, Binh Dinh Nam, Binh Quy, Binh Phu, Binh Chanh, Binh Que communes) districts and Cu Lao Cham island |
Dai Loc, Que Son, Phu Ninh, Duy Xuyen (Duy Chau, Duy Hoa, Duy Phu, Duy Son, Duy Tan, Duy Thu, Duy Trinh, Duy Trung communes) Nui Thanh (Tam Xuan I, Tam Xuan II, Tam Anh Bac, Tam Anh Nam communes), Thang Binh (Binh Nguyen, Binh Tu, Binh An, Binh Trung communes) districts |
|
29 |
Quang Ngai |
Ba To, Tra Dong, Son tay, Son Ha, Minh Long, Binh Son, Son Tinh districts and Ly Son island |
Nghia Hand district |
|
30 |
Binh Dinh |
An Lao, Vinh Thanh, Van Canh, Phu Cat, Tay Son, Hoai An, Phu My districts |
Tuy Phuoc district |
|
31 |
Phu Yen |
Song Hinh, Dong Xuan, Son Hoa, Phu Hoa, Tay Hoa districts |
Song Cau, Dong Hoa towns, Tuy An district |
|
32 |
Khanh Hoa |
Khanh Vinh, Khanh Son districts, Truong Sa Archipelago and other islands in the province |
Van Ninh, Dien Khanh, Cam Lam districts, Ninh Hoa town, Cam Ranh city |
|
33 |
Ninh Thuan |
All districts |
Phan Rang – Thap Cham city |
|
34 |
Binh Thuan |
Phu Quy district |
Bac Binh, Tuy Phong, Duc Linh, Tanh Linh, Ham Thuan Bac, Ham Thuan Nam, Ham Tan districts |
|
35 |
Dak Lak |
All districts and Buon Ho town |
Buon Ma Thuot city |
|
36 |
Gia Lai |
All districts and district-level towns |
Pleiku city |
|
37 |
Kon Tum |
All districts and district-level cities |
|
|
38 |
Dak Nong |
All districts and district-level towns |
|
|
39 |
Lam Dong |
All districts |
Bao Loc city |
|
40 |
Ba Ria – Vung Tau |
Con Dao district |
Phu My, Chau Duc, Xuyen Loc towns |
|
41 |
Tay Ninh |
Tan Bien, Tan Chau, Chau Thanh, Ben Cau districts |
Duong Minh Chau, Go Dau, Hoa Thanh districts and Trang Bang town |
|
42 |
Binh Phuoc |
Loc Ninh, Bu Dang, Bu Dop, Bu Gia Map, Phu Rieng districts |
Dong Phu, Chon Thanh, Hon Quan districts, Binh Long, Phuoc Long towns |
|
43 |
Long An |
Duc hue, Moc Hoa, Vinh Hung, Tan Hung districts |
Kien Tuong town; Tan Thanh, Duc Hoa, Thanh Hoa districts |
|
44 |
Tien Giang |
Tan Phuoc, Tan Phu Dong districts |
Go Cong Dong, Go Cong Tay districts |
|
45 |
Ben Tre |
Thanh Phu, Ba Tri, Binh Dai districts |
Other districts |
|
46 |
Tra Vinh |
Chau Thanh, Tra Cu districts |
Cau Ngang, Cau Ke, Tieu Can, Duyen Hai districts, Duyen Hai town, Cang Long town, Tra Vinh city |
|
47 |
Dong Thap |
Hong Ngu, Tan Hong, Tam Nong, Thap Muoi districts and Hong Ngu town |
Other districts |
|
48 |
Vinh Long |
|
Tra On, Binh Tan, Vung Liem, Mang Thit, Tam Binh districts |
|
49 |
Soc Trang |
All districts, Vinh Chau and Nga Nam towns |
Soc Trang city |
|
50 |
Hau Giang |
All districts, Long My town and Nga Bay City |
Vi Thanh city |
|
51 |
An Giang |
An Phu, Tri Ton, Thoai Son, Tinh Bien districts and Tan Chau town |
Chau Doc city and other districts |
|
52 |
Bac Lieu |
All districts and district-level towns |
Bac Lieu city |
|
53 |
Ca Mau |
All districts and islands in the province |
Ca Mau city |
|
54 |
Kien Giang |
Ha Tien town, all districts and islands in the province |
Rach Gia city |
|
55 |
|
Economic zones, hi-tech zones (including concentrated information technology zones established under regulations of the Government) |
Industrial zones, export processing zones, industrial complexes established under regulations of the Government |
Best regards!
