This is a notable provision stipulated in the Law on Investment 2020 promulgated by the National Assembly on June 17, 2020, which replaces the Law on Investment 2014.
Article table of contents
Law on Investment 2020: More business lines eligible for investment incentives in Vietnam from January 01, 2021 (Illustrative image)
To be specific, according to Clause 1, Article 16 of Law on Investment 2020 and Clause 1, Article 16 of Law on Investment 2014 which regulate sectors and professions eligible for investment incentives, we obtain the following table:
| No | BUSINESS LINES ELIGIBLE FOR INVESTMENT INCENTIVES | |
| LAW ON INVESTMENT 2014 (Expired from January 1, 2021) |
LAW ON INVESTMENT 2020 (Effective from January 1, 2021) |
|
| 01 | High-tech activities, high-tech supporting industrial products; research and development activities; | High-tech activities, high-tech supporting industrial products, research and development activities, production of products formed from the results of science and technology according to the provisions of the law on science and technology; |
| 02 | Production of new materials, new energy, clean energy, renewable energy; production of products with added value of 30% or more, energy-saving products; | Production of new materials, new energy, clean energy, renewable energy; production of products with added value of 30% or more, energy-saving products; |
| 03 | Production of electronic products, key mechanical products, agricultural machinery, automobiles, automobile parts; shipbuilding; | Production of electronic products, key mechanical products, agricultural machinery, automobiles, automobile parts; shipbuilding; |
| 04 | Production of supporting industrial products for the textile, footwear industry and products stipulated at point c, Clause 1, Article 16 of Law on Investment 2014 | Production of products in the list of prioritized supporting industrial products; |
| 05 | Production of information technology products, software, digital content; | Production of information technology products, software, digital content; |
| 06 | Cultivation, processing of agricultural, forest, and aquatic products; afforestation and forest protection; salt production; fishery exploitation and fishery logistics services; production of plant varieties, animal breeds, and biotechnology products; | Cultivation, processing of agricultural, forest, and aquatic products; afforestation and forest protection; salt production; fishery exploitation and fishery logistics services; production of plant varieties, animal breeds, and biotechnology products; |
| 07 | Collection, treatment, recycling, or reuse of waste; | Collection, treatment, recycling, or reuse of waste; |
| 08 | Investment in development, operation, management of infrastructure facilities; development of public passenger transport in urban areas; | Investment in development, operation, management of infrastructure facilities; development of public passenger transport in urban areas; |
| 09 | Preschool, general education, vocational education; | Preschool, general education, vocational education, higher education; |
| 10 | Medical examination and treatment; production of drugs, drug materials, essential drugs, vital drugs, social disease prevention drugs, vaccines, medical biologicals, herbal medicines, traditional medicines; scientific research on preparation technology, biotechnology for the production of new drugs; | Medical examination and treatment; production of drugs, drug materials, drug preservation; scientific research on preparation technology, biotechnology for the production of new drugs; production of medical equipment; |
| 11 | Investment in facilities for practice and competition of sports for disabled or professional athletes; protection and promotion of cultural heritage values; | Investment in facilities for practice and competition of sports for disabled or professional athletes; protection and promotion of cultural heritage values; |
| 12 | Investment in geriatric, psychiatric centers, treatment of patients infected with Agent Orange; centers for the care of the elderly, disabled people, orphans, homeless children; | Investment in geriatric, psychiatric centers, treatment of patients infected with Agent Orange; centers for the care of the elderly, disabled people, orphans, homeless children; |
| 13 | People's credit funds, microfinance institutions. | |
Besides, Law on Investment 2020 still maintains the provision on investment incentive locations as per the current regulations, specifically, investment incentive locations include:
- Areas with difficult socio-economic conditions, areas with especially difficult socio-economic conditions;
- Industrial zones, export processing zones, high-tech zones, economic zones.
For details, see Law on Investment 2020, effective from January 1, 2021, replacing Law on Investment 2014.
Le Hai
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