What are the State's policies towards entities engaged in defense industry activities in Vietnam?

What are the State's policies towards entities engaged in defense industry activities in Vietnam? (Internet image)

The State's policies towards entities engaged in defense industry activities in Vietnam are as stipulated in Decree 46/2009/ND-CP as follows:

+ For foreigners engaged in defense industry activities

• Foreign organizations and individuals that invest in Vietnam under the investment law will be leased land by the Vietnamese State, in case they are allowed to lease land from enterprises building and dealing in infrastructure of industrial parks and hi-tech parks to which land has been allocated by the State, they shall comply with the land law.

• When engaged in defense industry activities to produce products and product details, conduct scientific and technological research or technology transfer for the manufacture of products for defense or security purposes, foreign organizations and individuals may be exempt from value-added tax under the value-added tax law. Enterprise income tax will be exempt for investors contributing as capital inventions, technical know-how. technological processes or technical services. Enterprise income tax will be reduced for income from the transfer of foreign investors' capital amounts to Vietnamese enterprises under the Law on Enterprise Income Tax.

+ For domestic organizations and individuals engaged in defense industry activities

++ When directly producing defense products for defense industry specified in group 1 or group 2 of List A enclosed with Decree 46/2009/ND-CP, organizations or individuals may enjoy the following entitlements and preferential policies:

• Exemption from land rents, land use levy and tax for necessary land areas used during the time of direct defense service;

• Hazard or danger allowances when performing special defense tasks specified at Point c. Clause 2. Article 8 of Decree 46/2009/ND-CP. If these organizations or individuals are injured or die while performing these tasks, they may be recognized as war invalids or fallen heroes and enjoy entitlements for war invalids or fallen heroes like employees of core defense industry establishments specified at Point f, Clause 2. Article 8 of Decree 46/2009/ND-CP.

++ When directly producing defense products for defense industry specified in List B enclosed with Decree 46/2009/ND-CP, organizations or individuals may enjoy the entitlements and preferential policies under regulations on production and supply of public-utility products and services.

More details can be found in Decree 46/2009/ND-CP, which comes into force from June 27, 2009.

Long Binh

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