Subjects of incentives and procedures for certification of incentives for supporting industry in Vietnam

Subjects of incentives and procedures for certification of incentives for supporting industry in Vietnam (Internet image)

1. Subjects of incentives and procedures for certification of incentives for supporting industry in Vietnam

The subjects of incentives and procedures for certification of incentives for supporting industry in Vietnam according to Article 11 of Decree 111/2015/ND-CP are as follows:

• Subjects of Incentive:

Projects producing supporting industry products listed in the priority development list: Including new investment projects, projects of expansion and technology renovation applying new equipment, new production processes, and producing products with a production capacity increase of at least 20%.

• Procedures for Confirming Incentives:

- Small and medium-sized enterprises' projects producing supporting industry products listed in the priority development list may submit application dossiers to the local competent authority where the project is located or to the Ministry of Industry and Trade for confirmation. The local competent authority sends the Incentive Confirmation Decision to the Ministry of Industry and Trade;

- Other subjects that are not defined in the above category submit application dossiers to the Ministry of Industry and Trade for confirmation.

• Timeframe for Confirmation of Incentives:

- Based on the application dossier for incentive confirmation; within 30 working days, the confirmation authority is responsible for notifying the results to the enterprises;

- In cases where the dossier is not sufficient to confirm eligibility for incentives, within 5 working days from the receipt of the dossier, the confirmation authority must issue a written notification to the relevant organizations or individuals to supplement the dossier; after having a complete valid dossier, the confirmation authority must issue a notification of the incentive review results no later than 30 working days from the date of receiving the complete dossier.

• Post-Incentive Check:

Projects producing supporting industry products listed in the priority development list that do not meet the conditions for incentives will have the incentives revoked and must compensate for any benefits received.

2. Supporting Industry Development Program in Vietnam

The Supporting Industry Development Program in Vietnam according to Article 10 of Decree 111/2015/ND-CP is as follows:

• Objective:

Support organizations and individuals to enhance their capabilities in developing supporting industries.

• Content:

- Support for enhancing business capabilities: Corporate governance; production management; creating linkages and connections between supporting industry product manufacturing enterprises with customers to become suppliers for multinational corporations and other supporting industry manufacturers both domestically and internationally; promotion and market support for supporting industry products;

- Support for training human resources to meet the requirements of supporting industry product manufacturing sectors;

- Support for research and development, technology transfer, and innovation in the experimental production of components, parts, and materials;

- Dissemination of awareness, providing information on policies, markets, and capabilities of Vietnam's supporting industries through organizing workshops, publishing newsletters, publications, and promotion on various media outlets;

- International cooperation in developing supporting industries; promoting and attracting foreign investment in the field of supporting industries;

- Support for building and setting technical standards, criteria for supporting industry products listed in the priority development list suitable and harmonized with international and regional standards;

- Building and updating databases on supporting industries domestically and internationally on a specialized electronic information page.

• Funding:

- Sources of funding for implementing the supporting industry development program:

+ State budget support according to the current budgetary division;

+ Funds from organizations and individuals undertaking supporting industry development activities;

+ Sponsorship, contributions from domestic and foreign organizations and individuals;

+ Other lawful sources as prescribed by law.

- Plan and Estimate:

+ The Ministry of Industry and Trade develops, consolidates into the annual general budget estimate of the Ministry of Industry and Trade and submits it to the Ministry of Finance, the Ministry of Planning and Investment, and related units as prescribed;

+ People's Committees of provinces and centrally run cities develop, consolidate into the annual local budget estimates, and submit to competent authorities for approval as prescribed.

• The Prime Minister of Vietnam stipulates specific regulations on the construction, management, and implementation of the supporting industry development program.

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