Latest criteria and conditions for initial investment cost support from the Investment Support Fund in Vietnam

Latest criteria and conditions for initial investment cost support from the Investment Support Fund in Vietnam​ (Image from the Internet)

On December 31, 2024, the Government of Vietnam promulgated Decree 182/2024/ND-CP on the establishment, management, and use of the Investment Support Fund.

Latest criteria and conditions for initial investment cost support from the Investment Support Fund in Vietnam

The criteria and conditions for initial investment cost support from the Investment Support Fund in Vietnam are stipulated in Article 25 of Decree 182/2024/ND-CP as follows:

- Enterprises specified in Article 24 of Decree 182/2024/ND-CP do not have overdue tax debts or debts to the state budget at the time of submitting the application:

“Article 24. Subjects Eligible for Initial Investment Cost Support

Subjects eligible for initial investment cost support are enterprises with investment projects in research and development centers in the fields of semiconductor industry, artificial intelligence.”

Meeting the conditions at points a, b, and c, clause 6, Article 18 of Decree 182/2024/ND-CP:

“Article 18. Criteria and Conditions for Cost Support

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6. Research and development center projects of enterprises specified in point d, clause 2, Article 16 must meet the following conditions:

a) The research and development center of the enterprise is established and registered to operate for scientific and technological organizations in accordance with the law on science and technology;

b) The field of science and technology activities includes research and development activities aimed at creating high technologies on the List of high technologies prioritized for development investment, high technology products on the List of high technology products encouraged for development, which are issued along with the Prime Minister's Decision;

c) The minimum capital investment scale is 3,000 billion VND and must have disbursed at least 1,000 billion VND within 3 years from the date of receiving the Investment Approval Decision, Investor Approval Decision, Investment Registration Certificate, or equivalent legal document.”

- The research and development center investment project has a positive impact on the innovation ecosystem and the development of new, breakthrough technologies and products of the country.

Latest principles for approving cost support proposals from the Investment Support Fund in Vietnam

The principles for approving cost support proposals from the Investment Support Fund in Vietnam are stipulated in Article 27 of Decree 182/2024/ND-CP:

- The Fund supports the costs of enterprises that meet the conditions stipulated in Decree 182/2024/ND-CP.

- The Fund's support for enterprises does not exceed the financial resources of the Fund as stipulated in Article 35 of Decree 182/2024/ND-CP.

- Based on the proposal report for cost support from the provincial People's Committee and enterprises, the projected financial balancing capacity of the Fund in the fiscal year, the Fund Management Board organizes evaluations and reports to the Government of Vietnam for consideration and decision on the total cost support level for enterprises based on the socio-economic development orientation and investment attraction in each period, as well as the Fund's budget.

- The provincial People's Committee and the Fund Management Board, under their authority as stipulated in Decree 182/2024/ND-CP, consider and decide the support amount for each enterprise within the allocated budget.

Refer to Decree 182/2024/ND-CP effective from December 31, 2024.

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