What are business lines eligible for investment incentives in Vietnam?

What are business lines eligible for investment incentives in Vietnam? (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. What are business lines eligible for investment incentives in Vietnam?

According to Clause 1, Article 16 of the Law on Investment 2020, business lines eligible for investment incentives include:

- Hi-tech activities, hi-tech supporting industry products, research, manufacturing and development of products formed from science and technology results in accordance with regulations of law on science and technology;

- Manufacturing of new materials, new energy, clean energy, renewable energy; manufacturing of products with an added value of 30% or more; energy-saving products;

- Manufacturing of key electronics, mechanical products, agricultural machinery, automobiles, automobile parts; shipbuilding;

- Manufacturing of products on the List of prioritized supporting industry products;

- Manufacturing of IT products, software products, digital contents;

- Breeding, growing and processing of agriculture products, forestry products, aquaculture products; afforestation and forest protection; salt production; fishing and fishing logistics services; production of plant varieties, animal breeds and biotechnology products;

- Collection, treatment, recycling or re-use of waste;

- Investment in development, operation, management of infrastructural works; development of public transportation in urban areas;

- Pre-school education, general education, vocational education, higher education;

- Medical examination and treatment; manufacturing of medicinal products and medicinal materials, storage of medicinal products; scientific research into preparation technology and biotechnology serving creation of new medicinal products; manufacturing of medical equipment;

- Investment in sports facilities for the disabled or professional athletes; protection and promotion of value of cultural heritage;

- Investment in geriatric centers, mental health centers, treatment for agent orange patients; care centers for the elderly, the disabled, orphans, street children;

- People's credit funds, microfinance institutions;

- Manufacturing of goods and provision of services that create or participate in value chains and industry linkage clusters.

2. Areas eligible for investment incentives

According to Clause 2, Article 16 of the Law on Investment 2020, areas eligible for investment incentives include:

- Disadvantaged areas and extremely disadvantaged areas;

- Industrial parks, export-processing zones, hi-tech zones and economic zones.

3. Forms of investment assistance

According to Clause 1, Article 18 of the Law on Investment 2020, forms of investment assistance include:

- 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.

According to Clause 2, Article 18 of the Law on Investment 2020, the Government shall, according to the orientation for socio-economic development and the ability to balance the state budget in each period, specify the forms of investment assistance in Clause 1 of Article 18 of the Law on Investment 2020 which is provided for hi-tech enterprises, science and technology enterprises, science and technology organizations, enterprises investing in agriculture and rural areas, enterprises investing in education, dissemination of laws and other entities.

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