Incentive policies for small and medium enterprises manufacturing supporting products in Vietnam

According to Clause 2 Article 12 of the Decree No. 111/2015/NĐ-CP of the Vietnam’s Government, besides the common incentives stipulated in Clause 1 of this Article, small and medium-sized enterprises (SMEs) manufacturing supporting products under the List are also entitled to the following incentives:

Investment credit: These small and medium-sized enterprises may take loans of up to 70% its investment on the basis of guarantee provided by the organization permitted to guarantee for SMEs if it meet all of the following conditions:

- The total value of mortgage or pledge to the credit organization, excluding mortgage or pledges for other kinds of loans, is at least 15% of the loan; 

- Owner’s equity capitalized in the project is at least 20%, after deducting equity invested in other projects;

- At the time of request for guarantee, there are no outstanding liabilities to the state budget, bad debts to credit institutions or other economic organizations.

Water surface/land rents:

- Exempted or reduced land/water space rent as stipulated in Land Law;

- With regard to special or large-scale projects which may have significant socio-economic effectiveness and need greater incentives, the Ministry of Finance shall cooperate with the Ministry of Planning and Investment of Vietnam to make a decision on the basis of the proposal of the People's Committee of the province where the projects are located in accordance with regulations of law on land.

View more details at the Decree No. 111/2015/NĐ-CP of the Vietnam’s Government, effective from January 01, 2016.

Ty Na

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