Are investment projects in disadvantaged areas eligible for investment incentives in Vietnam?

Are investment projects in disadvantaged areas eligible for investment incentives in Vietnam?

According to the Number 1, Section III of the List of Ethnic Minority and Mountainous Communes in Binh Dinh Province Based on Development Level during the Period 2021-2025 issued together with Decision 861/QD-TTg in  2021, Vinh An commune, Tay Son district, Binh Dinh province is classified as a disadvantaged commune (the III area).

Pursuant to Clause 2 Article 15 of the Law on Investment in 2020 stipulating entities eligible for investment incentives as follows:

a) Investment projects in business lines eligible for investment incentives specified in Clause 1 Article 16 of this Law;

b) Investment projects located in the areas eligible for investment incentives specified in Clause 2 Article 16 of this Law;

c) Any investment project whose capital is at least VND 6,000 billion of which at least VND 6,000 billion is disbursed within 03 years from the issuance date of the investment registration certificate or the approval for investment guidelines and which satisfies any of the following criteria: the total revenue is at least VND 10,000 billion per year within 03 years from the year in which the revenue is earned or the project has more than 3,000 employees;

d) Projects on investment in social housing construction; investment projects located in rural areas and employing at least 500 employees; investment projects that employ persons with disabilities in accordance with regulations of law on persons with disabilities.

dd) Hi-tech enterprises, science and technology enterprises and science and technology organizations; projects involving transfer of technologies on the List of technologies the transfer of which is encouraged in accordance with regulations of the Law on Technology Transfer, science and technology enterprise incubators prescribed by the Law on High Technologies and Law on Science and Technology; enterprises manufacturing and providing technologies, equipment, products and services with a view to satisfaction of environment protection requirements prescribed by the Law on Environment Protection;

e) Start-up projects, national innovation centers and research and development centers;

g) Investment in business in small and medium-sized enterprises’ product distribution chain; investment in business in technical establishments supporting small and medium-sized enterprises, small and medium-sized enterprise incubators; investment in business in co-working spaces serving small and medium-sized enterprises and startups prescribed by the Law on Small and Medium-Sized Enterprises.

Pursuant to Clause 2 Article 16 of the Law on Investment in 2020 stipulating areas eligible for investment incentives as follows:

a) Disadvantaged areas and extremely disadvantaged areas;

b) Industrial parks, export-processing zones, hi-tech zones and economic zones.

As regulations above, your project is being implemented in the extremely  disadvantaged area, so it is eligible for investment incentives.

Are investment projects in disadvantaged areas eligible for investment incentives in Vietnam? - Image from Internet

What are procedures for applying investment incentives for projects in disadvantaged communes?

Pursuant to Article 17 of the Law on Investment in 2020 stipulating procedures for applying investment incentives as follows:

Based on the objects specified in Clause 2 Article 15 of this Law, the written approval for investment guidelines (if any), the investment registration certificate (if any) and other relevant regulations of law, investors shall determine investment incentives themselves and follow procedures for enjoying investment incentives at the tax authority, finance authority, customs authority or other competent authority corresponding to each type of investment incentive.

Best regards!