1/ Areas entitled to investment incentives
(i) Areas with difficult and extremely difficult socio-economic conditions (usually difficult rural areas, mountainous areas, remote areas, islands, etc.).
(ii) Industrial parks, export processing zones, high-tech parks, economic zones.

2/ Sectors entitled to for investment incentives
(i) High-tech activities, high-tech supporting industrial products, research and, development activities, production of products formed from scientific and technological results in accordance with the law on science and technology;
(ii) Production of new materials, new energy, clean energy, renewable energy; production of products with 30% or more added value, energy-saving products;
(iii) Production of key electronics, mechanical products, agricultural machinery, automobiles, automobile parts; shipbuilding;
(iv) Production of products in the list of prioritized supporting industry products;
(v) Production of information technology products, software products, digital contents;
(vi) Cultivating and processing agricultural, forestry and aquaculture products; afforestation and forest protection; salt production; fishing and fishing logistics services; production of plant varieties, animal breeds, biotechnology products;
(vii) Collection, treatment, recycling or reuse of waste;
(viii) Investment in development and operation and management of infrastructure works; development of public transportation in urban areas;
(ix) Pre-school education, general education, vocational education, higher education;
(x) Medical examination and treatment; production of medicinal products and medicinal materials, storage of medicinal products; scientific research on dosage technology and biotechnology serving the creation of new medicinal products; production of medical equipment;
(xi) Investment in sports facilities for the disabled or professional athletes; protection and promotion of the value of cultural heritage;
(xii) Investment in geriatric centers, mental health centers, treatment of patients infected with the Agent Orange; care centers for the elderly, the disabled, orphans and street children;
(xiii) People's Credit Funds and microfinance institutions;
(xiv) Manufacture of goods and provision of services that create or participate in value chains and industry linkage clusters.

3/ Contents of investment incentives 
Depending on the business sectors, geographical areas and scales of projects, investors may enjoy the following investment incentives:
(i) Corporate income tax incentives, including the application of a lower rate of corporate income tax for a certain period of time or the entire duration of the investment project; tax exemption, tax reduction and other incentives as prescribed by the Law on Corporate Income Tax;
(ii) Exemption from import duty on goods imported to form fixed assets; raw materials, supplies and components for manufacturing purposes as prescribed;
(iii) Exemption and reduction of land rent, land use fee and land use tax;
(iv) Accelerated depreciation, increase of deductible expenses upon calculation of taxable income.

4/ Levels of investment incentives
Depending on the business sectors, geographical areas and scales of projects, investors may enjoy the tax incentives for their investments in Vietnam according to the following levels:
4.1 Exemption and reduction of corporate income tax for a certain period of time for the income from the operation of the project:
(i) 4-year exemption and 50% reduction of tax payable for the next 9 years for the corporate income from performing new investment projects in areas with extremely difficult socio-economic conditions, economic zones and hi-tech parks; investment and development of power plants, water supply and drainage systems; roadways, railways, airports, seaports, aerodrome, terminals; and production of clean energy and renewable energy, etc.;
(ii) 2-year exemption and 50% reduction of tax payable for the next 4 years for the corporate income from performing new investment projects in areas with difficult socio-economic conditions and in industrial parks; manufacture of machinery and equipment serving agricultural, forestry, fishery and salt production activities; and production of cattle-feed, etc.
(iii) Preferential tax rates (compared to the normal rate of 20%):
 Enjoying the tax rate of 10% for 15 years for the corporate income specified at point (i) above;
 Enjoying the tax rate of 10% for the whole duration of operation for the corporate income of publishing, printed newspapers and social housing development enterprises, etc.
4.2 Incentives on land use charge, land rent (in case of leasing land from the State)
(i) Exemption of land rent for the whole lease term in the following cases:
 Investment projects in the field of special investment incentives in areas with extremely difficult socio-economic conditions;
 Projects using land for construction of houses for workers of industrial parks under projects approved by competent authorities;
 Land for development of shared infrastructure in industrial parks, industrial clusters and export processing zones.
(ii) Land rent exemption for a certain period of time in the following cases:
In addition to an exemption of up to 3 years in the basic construction period as approved commencing from the date of the land lease decision:
 3-year exemption for projects in the List of sectors entitled to investment incentives;
 7-year exemption for projects in areas with difficult socio-economic conditions;
 11-year exemption for projects in areas with extremely difficult socio-economic conditions; projects in the List of sectors entitled to special investment incentives; projects in the List of sectors entitled to investment incentives in areas with difficult socio-economic conditions;
 15-year exemption for projects in the List of sectors entitled to investment incentives in areas with extremely difficult socio-economic conditions; projects in the List of sectors entitled to special investment incentives in areas with difficult socio-economic conditions

Cre: VIETBID LAW CO.,LTD