Special investment incentives and assistance in Vietnam are one of the notable new regulations in the Investment Law 2020 which comes into force on January 1, 2020.
Article table of contents
Vietnam: Special investment incentives and assistance initially specified in Law on Investment 2020 (Illustrative Image)
Under Article 20 of the Investment Law 2020 on special investment incentives and assistance in Vietnam:
1. Purpose of special investment incentives and assistance in Vietnam
According to the provisions of Clause 1, Article 20 of the Investment Law 2020, the Government of Vietnam shall decide to apply special investment incentives and assistance with a view to encouraging the development of some investment projects that exert significant socio-economic effects.
2. Projects eligible for special investment incentives and assistance in Vietnam
- Projects on investment in establishment (including the expansion of such establishment project) of innovation centers and research and development centers with a total investment capital of at least VND 3,000 billion and disbursing at least VND 1,000 billion within 03 years from the issuance date of the investment registration certificate or the approval for investment guidelines; the National Innovation Center established under the Prime Minister's decision;
- Investment projects in the business line eligible for special investment incentives with an investment capital of at least VND 30,000 billion and disbursing at least VND 10,000 billion within 03 years from the issuance date of the investment registration certificate or the approval for investment guidelines.
3. Level and duration of application of special investment incentives in Vietnam
The Investment Law 2020 refers to the level and duration of application of special investment incentives according to the provisions of the Corporate Income Tax Law and the land law.
4. Forms of special investment assistance in Vietnam
Forms of special investment assistance are the same as those mentioned in Clause 1 Article 18 of the Investment Law 2020, including:
- Assistance in development of technical infrastructure and social infrastructure inside and outside the perimeter of the investment project;
- Assistance in training and development of human resources;
- Credit assistance;
- Assistance in access to business premises; assistance in relocation of business establishments under decisions of regulatory agencies;
- Assistance in science, technology and technology transfer;
- Assistance in market development and information provision;
- Assistance in research and development.
5. Cases in which special investment incentives and assistance will not apply
Special investment incentives and assistance will not apply in the following cases:
- any investment project that has been granted the investment certificate, the investment registration certificate or the decision on investment guidelines before January 1, 2020;
- Projects on investment in mineral mining;
- Projects on investment in manufacturing/sale of goods/services subject to special excise tax according to the Special Consumption Tax Law, except for projects on manufacturing of automobiles, aircrafts and yachts.
- Projects on investment in commercial housing construction prescribed by the Law on Housing.
The Government of Vietnam shall request the National Assembly to decide to apply investment incentives other than those specified in this Law and other laws if it is necessary to encourage the development of a project of special importance or a special administrative-economic unit. Provisions on special investment incentives and assistance in Article 20 of the Investment Law 2020 will be elaborated by the Government of Vietnam.
Thuy Tram
