PLF Tutorials

LEGAL TUTORIALS FOR DOING BUSINESS IN VIETNAM

Investment support of Vietnam authorities


Investors may receive support with the considerable value when satisfying some certain requirements of each local area.

General support

  • Assistance in development of technical infrastructure and social infrastructure inside and outside the fence of the project;
  • Assistance in training and developing human resource;
  • Assistance in credit;
  • Assistance in approaching the land for manufacture and business;
  • Assistance in moving manufacturing unit from cities;
  • Assistance in technical science, transfer technical;
  • Assistance in market development, supplying information;
  • Assistance in research and development.

Details on the level of investment support will depend on the provincial People Committee’s decision.

Article 19 of Law on Investment 2014

 

Support for construction of infrastructure for export – processing zones, industrial zones

Local budget will be balanced to support construction of infrastructure inside and outside of industrial zones, export-processing zones.

In addition, if industrial zones, export-processing zones are located in areas with difficult socio-economic conditions or with specially difficult socio-economic conditions, they will have further supports from the central budget.

Article 18, 20 of Decree 118/2015/NĐ-CP
 

Support for development of technical infrastructure of economic zones, high-tech zones

The state budget will be arranged for support in:

  • Development of social-technical infrastructure of high tech zones
  • Development of technical infrastructure – major public construction in economic zones
  • Compensation for land clearance, explosives
  • Compensation for land clearance, construction of social-technical infrastructure of housing areas for works and relocation areas.
  • Relocation for people whose land is withdrawn
  • Construction of concentrated zones for solid waste treatment and sewage treatment systems

Article 19 of Decree 118/2015/NĐ-CP

Policies for housing development in high tech zones shall be approved by Prime Minister.

 

Development of residential housing, service facilities for workers

Employees work in the areas in industrial zones, high tech zones, economic zones formulated by the provincial People’s Committees for development of residential housing, service facilities and public utilities.

If it is unable to arrange a land fund, the competent authorities will adjust the master plan in industrial zones to reserve part of the land area for development of residential housing, service facilities, public utilities for employees.

Article 21 of Law on Investment 2014
 

Support for small and medium-sized enterprises (SME)

In addition to the above support, small and medium-sized enterprises will have other incentives, including:

  • Support in approaching credit guarantee funds for small and medium-sized enterprises;
  • Support in tax, accounting: applied the corporate income tax rate lower than the common tax rate
  • Support in production land
  • Support in technology
  • Support in incubators, technical establishments and co-working space
  • Support in market expansion
  • Support in information, consultancy and legal matters;
  • Support in development of human resources

Household business, startups, joining business clusters and value chains in conversion to small and medium-sized enterprises will be received other support.

What is an SME?

An SME is an enterprise having the annual average number of employees who participate in social insurance not greater than 200 and satisfy one of the following criteria:

  • The total capital is not more than ~4.34 million US dollars;
  • The enterprise’s revenue of the previous year is not more than ~13.04 million US dollars;

Law on assistance for small and medium enterprises 2017

 

How to get such assistance?

Investors must satisfy the conditions from local authorities to receive the above assistance.

Each local authority will provide different support respective to different request.

Due to the large value of support, it is required to perform several time-consuming legal procedures.

Engaging PLF in Start a business in Vietnam service, our client will be provided advice on specific support at each local area as well as procedures to receive such support.

 

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