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LEGAL TUTORIALS FOR DOING BUSINESS IN VIETNAM

Geographical regions of investment incentives in Vietnam


Strategically siting a project in regions of investment incentives presents investors with special preferential policies on taxes, land rental, project duration, etc.
 

Incentives available in locations of investment incentives

Preferential Corporate Income Tax rates for a limited time or during the whole operational period; exemption and reduction in Corporate Income Tax.

Exemption from import duty granted for goods imported to form fixed assets; materials, supplies, and components needed for investment projects.

Exemptions and reductions in land rental, land use fees and taxes.

Operational period of a maximum of 70 years, applicable to investment projects in areas with difficult and/or specially difficult socio-economic conditions (50 years for other projects).  

Reductions of 25% to 50% in security deposit to ensure the implementation of investment projects.

Details of tax exemptions and reductions are mentioned in Tax Preference upon when Investing in Vietnam.
Article 15, Clause 4 Article 42, and Article 43 of the 2014 Investment Law.


Areas qualified for regional investment incentives

Regions with difficult socio-economic conditions and regions with special difficult socio-economic conditions.

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

Investment projects in rural areas hiring from 500 employees and more (not including part-time employees and those with labor contracts under 12 months) are still entitled to preferential policies, similar to those situated in areas with difficult socio-economic conditions.

Clause 2 Article 15 and Clause 2 Article 16 of the 2014 Investment Law, guided by Article 16 of Decree No. 118/2015/ND-CP

Exceptions:

Investment projects such as exploration and mining of minerals, production and business of products and services subject to special sales tax (excise tax), although located in areas of investment incentives, are not eligible for regional investment incentives.

Automobile production projects, however, are still qualified for regional investment incentives if they are sited in locations of investment incentives despite being subject to special sales tax.

Clause 4 Article 15 of the 2014 Investment Law


List of regions of investment incentives

Investors can consider investing in the following areas to receive incentives:

No.

Province

Regions with special difficult socio-economic conditions

Regions with difficult socio-economic conditions

1

Bac Kan

All districts, towns, and Bac Kan City

 

2

Cao Bang

All districts and Cao Bang City

 

3

Ha Giang

All districts and Ha Giang City

 

4

Lai Chau

All districts and Lai Chau City

 

5

Son La

All districts and Son La City

 

6

Dien Bien

All districts, towns, and Dien Bien City

 

7

Lao Cai

All districts

Lao Cai City

8

Tuyen Quang

Na Hang, Chiem Hoa and Lam Binh districts

Ham Yen, Son Duong and Yen Son districts, and Tuyen Quang City

9

Bac Giang

Son Dong district

Luc Ngan, Luc Nam, Yen The and Hiep Hoa districts

10

Hoa Binh

Da Bac and Mai Chau districts

Kim Boi, Ky Son, Luong Son, Lac Thuy, Tan Lac, Cao Phong, Lac Son and Yen Thuy districts

11

Lang Son

Binh Gia, Dinh Lap, Cao Loc, Loc Binh, Trang Dinh, Van Lang, Van Quan and Bac Son districts

Chi Lang and Huu Lung districts

12

Phu Tho

Thanh Son, Tan Son and Yen Lap districts

Doan Hung, Ha Hoa, Phu Ninh, Thanh Ba, Tam Nong, Thanh Thuy and Cam Khe districts

13

Thai Nguyen

Vo Nhai, Dinh Hoa, Dai Tu, Phu Luong and Dong Hy districts

Pho Yen and Phu Binh districts

14

Yen Bai

Luc Yen, Mu Cang Chai and Tram Tau districts

Tran Yen, Van Chan, Van Yen and Yen Binh districts, and Nghia Lo town

15

Quang Ninh

Ba Che and Binh Lieu districts, Co To island district, and other provincial islands and isles.

Van Don, Tien Yen, Hai Ha and Dam Ha districts

16

Hai Phong

Island districts of Bach Long Vy and Cat Hai

 

17

Ha Nam

 

Ly Nhan, Thanh Liem and Binh Luc districts

18

Nam Dinh

 

Giao Thuy, Xuan Truong, Hai Hau and Nghia Hung districts

19

Thai Binh

 

Thai Thuy and Tien Hai districts

20

Ninh Binh

 

Nho Quan, Gia Vien, Kim Son, Tam Diep and Yen Mo districts

21

Thanh Hoa

Muong Lat, Quan Hoa, Quan Son, Ba Thuoc, Lang Chanh, Thuong Xuan, Cam Thuy, Ngoc Lac, Nhu Thanh and Nhu Xuan districts

Thach Thanh and Nong Cong districts

22

Nghe An

Ky Son, Tuong Duong, Con Cuong, Que Phong, Quy Hop, Quy Chau and Anh Son districts

Tan Ky, Nghia Dan and Thanh Chuong districts, and Thai Hoa town

23

Ha Tinh

Huong Khe, Huong Son, Vu Quang, Loc Ha and Ky Anh districts

Duc Thọ, Nghi Xuan, Thach Ha, Cam Xuyen and Can Loc districts

24

Quang Binh

Tuyen Hoa, Minh Hoa and Bo Trach districts

The remaining districts and Ba Don town

25

Quang Tri

Huong Hoa and Da Krong districts, Con Co island district, and provincial islands.

The remaining districts

26

Thua Thien Hue

A Luoi and Nam Dong districts

Phong Dien, Quang Dien, Phu Loc and Phu Vang districts, and Huong Tra town

27

Da Nang

Hoang Sa island district

 

28

Quang Nam

Dong Giang, Tay Giang, Nam Giang, Phuoc Son, Bac Tra My, Nam Tra My, Hiep Duc, Tien Phuoc, Nui Thanh, Nong Son and Thang Binh districts, and Cu Lao Cham island

Dai Loc, Que Son, Phu Ninh and Duy Xuyen districts

29

Quang Ngai

Ba To, Tra Dong, Son Tay, Son Ha, Minh Long, Binh Son, Tay Tra and Son Tinh districts, Ly Son island district

Nghia Hanh district

30

Binh Dinh

An Lao, Vinh Thanh, Van Canh, Phu Cat, Tay Son, Hoai An and Phu My districts

Tuy Phuoc district

31

Phu Yen

Song Hinh, Dong Xuan, Son Hoa, Phu Hoa and Tay Hoa districts

Song Cau town;  Dong Hoa and Tuy An districts

32

Khanh Hoa

Khanh Vinh and Khanh Son districts, Truong Sa island district, and provincial islands.

Van Ninh, Dien Khanh and Cam Lam districts, Ninh Hoa town, and Cam Ranh City

33

Ninh Thuan

All districts

Phan Rang - Thap Cham City

34

Binh Thuan

Phu Quy district

Bac Binh, Tuy Phong, Duc Linh, Tanh Linh, Ham Thuan Bac, Ham Thuan Nam and Ham Tan districts

35

Dak Lak

All districts and Buon Ho town

Buon Ma Thuot City

36

Gia Lai

All districts and towns

Pleiku City

37

Kon Tum

All districts and cities

 

38

Dak Nong

All districts and towns

 

39

Lam Dong

All districts

Bao Loc City

40

Ba Ria - Vung Tau

Con Dao district

Tan Thanh, Chau Duc and Xuyen Moc districts

41

Tay Ninh

Tan Bien, Tan Chau, Chau Thanh and Ben Cau districts

 The remaining districts

42

Binh Phuoc

Loc Ninh, Bu Dang, Bu Dop, Bu Gia Map and Phu Rieng districts

Dong Phu, Chon Thanh and Hon Quan districts, Binh Long and Phuoc Long towns

43

Long An

Duc Hue, Moc Hoa, Vinh Hung and Tan Hung districts

Kien Tuong town; Tan Thanh, Duc Hoa and Thanh Hoa districts

44

Tien Giang

Tan Phuoc and Tan Phu Dong districts

Go Cong Dong and Go Cong Tay districts

45

Ben Tre

Thanh Phu, Ba Tri and Binh Dai districts

The remaining districts

46

Tra Vinh

Chau Thanh and Tra Cu districts

Cau Ngang, Cau Ke and Tieu Can districts, and Tra Vinh City

47

Dong Thap

Hong Ngu, Tan Hong, Tam Nong and Thap Muoi districts, and Hong Ngu town

The remaining districts

48

Vinh Long

 

Tra On, Binh Tan, Vung Liem, Mang Thit and Tam Binh towns

49

Soc Trang

All districts, Vinh Chau and Nga Nam towns

Soc Trang City

50

Hau Giang

All districts and Nga Bay town

Vi Thanh City

51

An Giang

An Phu, Tri Ton, Thoai Son and Tinh Bien districts, and Tan Chau town

Chau Doc City and the remaining districts

52

Bac Lieu

All districts and towns

Bac Lieu City

53

Ca Mau

All districts, provincial islands and isles

Ca Mau City

54

Kien Giang

All districts, provincial islands and isles, and Ha Tien town

Rach Gia City

55

 

Economic and high-tech zones (including focused technology information zones established under the decision of the Prime Minister)

Industrial and export processing zones established under the decision of the Prime Minister

There are more investment incentives applied to regions with special difficult socio-economic conditions than those with difficult socio-economic conditions.

Decree No. 118/2015/ND-CP dated November 12th 2015 by the Government
Map of Industrial Zones

 

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