Proposal on the formulation of the Law on the production of key industrial products in Vietnam

Proposal on the formulation of the Law on the production of key industrial products in Vietnam (Image from the internet)

Proposal on the formulation of the Law on the production of key industrial products in Vietnam

The Law on the production of key industrial products regulates the activities of producing key industrial products.

Key industries refer to industries that produce the following products:

- Priority development supporting industrial products in sectors such as textiles, leather – footwear, electronics – electrical, machinery, automobile manufacturing and assembly; supporting industrial products for high-tech industries;

- Key mechanical products: automobiles, ships, electrical equipment, road and rail transport equipment;

- Alloy steel, special steel for manufacturing new generation machinery;

- New materials;

- New energy products and equipment.

National Program Made in Vietnam is a program issued by the Prime Minister of the Government of Vietnam aiming to define the views, orientations, and objectives for developing key industries nationwide in each period and organize the use of the country's resources from central to local levels to ensure the realization of the views, orientations, and development objectives of the nation's key industries.

Key industrial products are industrial products with market potential, competitiveness domestically and internationally, advanced technology, with a dynamic and widespread impact that promotes other manufacturing industries, aligns with the country's socio-economic development strategy, ensures sustainable production capacity and environment; generates high and stable growth; or belongs to the group of major export products contributing significantly to the total GDP.

The list of key industrial products is issued along with the National Program Made in Vietnam approved by the Prime Minister of the Government of Vietnam according to the mission in Resolution 29-NQ/TW of 2022 by the Central Executive Committee of the Communist Party on continuing to promote industrialization and modernization of the country up to 2030, with a vision to 2045.

(Article 1, 3 Draft Detailed Outline Law on the production of key industrial products)*

Principles for Special Investment Preferences and Support for Key Industrial Projects

Special investment preferences and support aim to selectively attract, with quality, efficiency, technology, and environmental protection as key evaluation criteria; prioritizing projects with advanced, new technology, high added value, widespread impact, connecting global production and supply chains.

The special investment preferences and support apply to both new investment projects and expansion projects. The application of investment preferences is based on the investor meeting preference conditions and a post-audit mechanism. In cases where commitments and conditions for preferences are not met, the enterprise must repay the preferences received...

(Article 6 Draft Detailed Outline Law on the production of key industrial products)*

Entities Eligible for Special Investment Preferences and Support in Vietnam

Special investment preferences apply to the income of enterprises from implementing investment projects that meet the following conditions:

- Falls under the entities eligible for special investment preferences and support as regulated by the Investment Law.

- Meets one of the following criteria:

+ Joint venture with a Vietnamese enterprise, with the capital contribution ratio of the Vietnamese enterprise accounting for at least 50% (for investment projects of foreign-invested enterprises);

+ Increases the revenue ratio from key industrial products in Vietnam; total expenditure for research and development activities conducted in Vietnam;

+ Ensures an increase in the number of Vietnamese enterprises executing contracts to supply goods and services for the production and business activities of the project;

+ Increases the production value in Vietnam of the project;

+ Commits to transferring technology under the list of high technologies particularly invested in development or the list of high technology products encouraged for development to domestic enterprises, which are Vietnamese enterprises in the joint venture or first-tier suppliers...

(Article 7 Draft Detailed Outline Law on the production of key industrial products)*

More details can be found in the Draft Detailed Outline Law on the production of key industrial products.

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