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
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