Industries and trades entitled to investment incentives

Forms of application of investment incentives (Article 15, Law on Investment No.61/2020)

  • Corporate income tax (CIT): Application of a lower rate of CIT than the standard CIT rate for a definite period or for the entire duration of the investment project; Tax holiday and reduction of CIT;
  • Import duty: Exemption from import duty in respect of some kinds of goods, raw materials, supplies and components;
  • Exemption from and reduction of land rent, land use fees and land use tax;
  • Quick depreciation, increasing the deductible expenses when calculating the taxable revenue

List of industries and trades entitled to investment incentives (Article 16 Law on Investment No.61/2020)  

  1. High-tech activities, industrial products which support high-tech; research and development activities; production of products formed from the results of science and technology [S&T] in accordance with the law on S&T;
  2. Production of new materials, new energy, clean energy or renewable energy; production of products with an added value of 30% or more, and energy-saving products;
  3. Production of electronics, prioritized mechanical products, agricultural machinery, automobiles, automobile parts; and shipbuilding;
  4. Production of products on the List of supportive industrial products for which development is prioritized;
  5. Production of products of information technology, software and digital content [products];
  6. Breeding, growing and processing agricultural, forestry and aquaculture products; afforestation and protection of forests; salt production; fishing and fishing logistics, creation of plant and animal varieties and production of products of biological technology;
  7. Collection, processing, reprocessing or reuse of refuse/waste;
  8. Investment in development and operation, and management of infrastructure facilities; and development of public transportation in urban areas;
  9. Pre-school education; general education; vocational education; and university education;
  10. Medical consultation and treatment; production of medicines, raw materials for production and storage of medicines; and scientific research in relation to technology of preparation or biological technology for production of new medicines; production of medical equipment;
  11. Investment in facilities for training and competition of sports or physical practice for disabled people or for professional sportsmen; and protection and promotion of the value of cultural heritage;
  12. Investment in centres for geriatrics, psychiatry or treatment of patients exposed to Agent Orange, and centres for care of the old, disabled, orphans or street children without supports
  13. People’s credit funds and micro-financial institutions;
  14. Production of goods or supply of services which create or participate in a value chain or industry linkage cluster.

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