Business lines given foreign investment incentives in Vietnam

1. Forms of foreign investment incentives

According to Article 15 of the Law on Investment 2014 of Vietnam, forms of incentives include:

- Application of a lower rate of corporate income tax for a certain period of time or throughout the project execution; exemption, reduction of corporate income tax;

- Exemption or reduction of import tax on goods imported as fixed assets; raw materials, supplies, and parts used for the project;

- Exemption, reduction of land rents, land levy.

2. Business lines given foreign investment incentives in Vietnam

Foreign investment incentives shall be given to the following investment lines:

- High-tech activities, high-tech ancillary products; research and development;

- Production of new materials, new energy, clean energy, renewable energy; productions of products with at least 30% value added; energy-saving products;

- Production of key electronic, mechanical products, agricultural machinery, cars, car parts; shipbuilding;

- Production of ancillary products serving textile and garment industry, leather and footwear industry, and the products in Point c of this Clause;

- Production of IT products, software products, digital contents;

- Cultivation, processing of agricultural products, forestry products, aquaculture products; afforestation and forest protection; salt production; fishing and ancillary fishing services; production of plant varieties, animal breads, and biotechnology products;

- Collection, treatment, recycling of waste;

- Investment in development, operation, management of infrastructural works; development of public passenger transportation in urban areas;

- Preschool education, compulsory education, vocational education;

- Medical examination and treatment; production of medicines, medicine ingredients, essential medicines, medicines for prevention and treatment of sexually transmitted diseases, vaccines, biologicals, herbal medicines, orient medicines; scientific research into preparation technology and/or biotechnology serving creation of new medicines;

- Investment in sport facilities for the disabled or professional athletes; protection and development of cultural heritage;

- Investment in geriatric centers, mental health centers, treatment for agent orange patients; care centers for the elderly, the disabled, orphans, street children;

- People's credit funds, microfinance institutions.

This is the content specified in Article 16 of the Law on Investment 2014 of Vietnam.

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