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:

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 12^th 2015 by the Government