On December 31, 2024, the Government of Vietnam issued Decree No. 182/2024/ND-CP on the establishment, management, and use of the Investment Support Fund. This marks an important step in attracting and supporting investment, especially for high-tech enterprises and strategic investment projects. The Fund is managed by the Ministry of Planning and Investment, operates on a non-profit basis, and does not aim to preserve the Fund’s capital.
1. Objectives of the Investment Support Fund
The Investment Support Fund was established with the objective of providing financial support to enterprises operating in high-tech sectors, green transformation, and leading Vietnamese enterprises with potential for spillover effects and economic development.
2. Beneficiaries and Conditions for Support
2.1. Beneficiaries of the Investment Support Fund
According to Clause 2, Article 14 of the Draft Outline on the establishment, management, and use of the Investment Support Fund, the Fund focuses on four main groups:
- High-tech enterprises
- Enterprises with investment projects in the production of high-tech products
- Enterprises with high-tech application projects
- Enterprises with investment projects for research and development (R&D) centers
2.2. Conditions for Receiving Support
According to Clause 1, Article 18 of Decree No. 182/2024/ND-CP, enterprises must meet specific conditions regarding investment capital and annual revenue in order to receive support:
- First, high-tech enterprises must have an investment project with a minimum capital of VND 12,000 billion or achieve a minimum project revenue of VND 20,000 billion per year.
- Second, enterprises with projects for high-tech product production or high-tech application must have a minimum project capital of VND 12,000 billion or reach an annual revenue of at least VND 20,000 billion.
- Third, high-tech enterprises or those with projects in high-tech product production or application, investing in fields such as chip industry, semiconductor integrated circuits, or artificial intelligence (AI) data centers must have a project capital of at least VND 6,000 billion or annual revenue of at least VND 10,000 billion.
3. Forms of Support
The Fund offers two key types of financial support:
- Firstly, annual cost support: This includes expenses for workforce training, R&D, fixed asset investment, high-tech product manufacturing, and social infrastructure development.
- Secondly, Initial investment cost support: This primarily supports enterprises with R&D centers in strategic sectors such as semiconductors and artificial intelligence. In some cases, up to 50% of initial investment costs may be covered.
Consequently, businesses can benefit from both operational and startup-phase assistance.
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4. Benefits of the Investment Support Fund for FDI Enterprises
The Fund brings several advantages to foreign direct investment (FDI) enterprises:
- Direct financial aid: Eligible FDI enterprises receive funding to reduce financial pressure and promote expansion.
- Enhanced R&D capacity: By supporting R&D investments in key sectors, the Fund boosts technological capabilities and innovation.
- Improved global competitiveness: Support from the Fund strengthens FDI firms’ roles in global supply chains, thereby reinforcing Vietnam’s international standing.
The information above is for reference only. If you require further details, please contact us using the information below.
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