Principles for applying support policies from the Investment Support Fund in Vietnam from December 31, 2024

Principles for applying support policies from the Investment Support Fund in Vietnam from December 31, 2024

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

Principles for applying the support policies of the Investment Support Fund in Vietnam from December 31, 2024

The principles for applying the support policy of the Investment Support Fund in Vietnam are specifically stipulated in Article 3 of Decree 182/2024/ND-CP including:

- Enterprises that meet the conditions of the cost support item as stipulated in Clause 1 Article 16 of Decree 182/2024/ND-CP shall be entitled to the support of that cost item. If enterprises meet conditions for multiple cost support items simultaneously, they shall benefit from the support of all eligible cost items.

- Cost support is provided in Vietnamese Dong, through the following methods:

+ Support by annual cost support item as stipulated in Section 1 Chapter III of Decree 182/2024/ND-CP, based on the fiscal year for which support is requested. Enterprises shall receive support proportionate to the level they satisfy the support conditions;

+ Initial investment cost support as stipulated in Section 2 Chapter III of this Decree.

- Enterprises must self-declare and bear legal responsibility for the legality, accuracy, and truthfulness of data, information, and content in the Dossier for cost support procedures.

- The cost support level in Chapter III of Decree 182/2024/ND-CP shall be executed according to enterprises' proposals that meet support conditions, based on approval decisions and principles stipulated in Article 27 of Decree 182/2024/ND-CP.

- Each enterprise, project is entitled to support for a maximum of 5 years, unless an extension is decided by the Prime Minister of the Government of Vietnam.

- If an enterprise qualifies for support from both the Investment Support Fund and another fund or form of support from the Government of Vietnam for the same cost support item, the enterprise can choose the type of support based on the principle of applying support from only one Fund or one form of support, unless otherwise regulated by the Government of Vietnam or decided differently by the Prime Minister of the Government of Vietnam.

- If an enterprise qualifies for support under both Section 1 and Section 2 Chapter III of Decree 182/2024/ND-CP, they can only choose support according to the regulations of one section.

- Support stipulated in Chapter III of Decree 182/2024/ND-CP applies to enterprises with investment projects approved by competent authorities for investment policy or granted an Investment Registration Certificate or equivalent legal document under the law on investment, issued before or from the effective date of Decree 182/2024/ND-CP.

- Support for cost items stipulated in Section 1 Chapter III of Decree 182/2024/ND-CP shall be applied from the fiscal year when high-tech enterprises generate revenue, or enterprises' projects stipulated in Clause 2 Article 16 of Decree 182/2024/ND-CP generate revenue and incur supported cost items. For the first year of being granted a High-Tech Enterprise Certificate or Certificate of High-Tech Application Operations or a New Enterprise Formation Certificate from a high-tech product manufacturing project or a Certificate of High-Tech Product Manufacturing Investment Project or a Certificate of Research and Development Center Investment Project, the supported expenses are those incurred throughout that entire fiscal year.

Enterprises shall submit the Dossier for cost support procedures after the end of the fiscal year for which support is requested as stipulated in Chapter IV of Decree 182/2024/ND-CP.

- Financial support from the Fund is not included in the taxable corporate income of the enterprise.

Refer to more details in the Decree 182/2024/ND-CP, effective from December 31, 2024.

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