Vietnam is increasingly integrating deeply into the global economy, creating a stable and transparent investment environment is a key factor in attracting domestic and foreign capital. The Investment Law 2020, with many innovations in management, incentives and support, has contributed to strengthening business confidence and promoting sustainable development of the investment structure. DNP Viet Nam Law Firm would like to introduce preferential policies and tell brave outstanding investment under this Law.
1. Investment incentives for FDI enterprises about taxes
CSPL: Clause 1, Article 15 of the Investment Law 2020
1.1 Corporate income tax (CIT) incentives:
CSPL: Article 13, Article 14 of the Law on Corporate Income Tax 2008
| Tax incentives | Earned income |
| 10%(Clause 2 Article 13) | – Income from socialization activities: Education – training, Health, culture,…- Income from social housing investment and business projects: Sale, lease, lease purchase of social housing to subjects specified in Article 53 of the Housing Law.[…] |
| 17% in 10 years(Clause 3 Article 13) | – Enterprise income from implementing new investment projects in areas with difficult socio-economic conditions;- Enterprise income from implementing new investment projects, including: high-grade steel production; producing energy saving products,… |
| 15%(Clause 3a Article 13) | Cultivation, animal husbandry, and processing in the agricultural sector are not located in areas with difficult socio-economic conditions or areas with particularly difficult socio-economic conditions. |
| FDI enterprises are exempt from tax for a maximum of 02 years and a 50% reduction in tax payable for a maximum of 04 subsequent years. (Clause 2 Article 14). | |
1.2 Export and import tax incentives:
CSPL: Article 16 of the Law on Export Tax and Import Tax 2016
FDI enterprises are exempted from export and import taxes on machinery, equipment, supplies and spare parts for production and business as prescribed in Article 16 of this Law, including:
- Fertilizers and pesticides cannot be produced domestically and must be imported
- Machinery, equipment, and means of transportation create fixed assets for projects.
- Imported goods are raw materials, supplies, and components that cannot be produced domestically and can directly serve the production of information technology products, digital content, and software.
- […]
1.3 Value added tax (VAT) incentives
CSPL: Article 9 of the Law on Value Added Tax 2024.
| Tax incentives | Goods and services are enjoyed |
| 0% VAT(Clause 1, Article 9) | – Goods and services are exported abroad under export contracts – International transportation services, including transporting passengers and goods from Vietnam to abroad or vice versa.[…] |
| 5% VAT(Clause 2, Article 9) | – Clean water for production and daily life.- Fertilizers and ores for the production of fertilizers, plant protection drugs and animal growth stimulants according to the provisions of law. […] |
| 10% VAT(Clause 3, Article 9) | Services are provided by foreign suppliers without permanent establishments in Vietnam to organizations and individuals in Vietnam through e-commerce channels and digital platforms. |
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1.4 Incentives Exemption or reduction of land rent:
– Land rental exemption:
CSPL: Point d Clause 1 Article 39 Decree 103/2024/ND-CP
FDI enterprises are exempt from land rent for the entire lease term in case they use land as premises to build headquarters or production factories; Build service facilities directly serving agricultural production,…
– Reduce land rent:
CSPL: Point d Clause 1 Article 40 Decree 103/2024/ND-CP
50% reduction in annual land rent in the following cases:
- Using land to implement projects according to the public-private partnership method in fields and areas eligible for investment incentives according to the List of industries and occupations eligible for investment incentives; industries and occupations with special investment incentives;
- Areas with difficult socio-economic conditions
- Areas with extremely difficult socio-economic conditions according to investment laws.
1.5. Tax exemption and reduction incentives
- Non-agricultural land use tax exemption in eligible cases Article 9 Law on non-agricultural land use tax 2010
- Tax reduction of up to 50% for non-agricultural land use in cases covered by Article 10 Law on Non-Agricultural Land Use Tax 2010.
2. Special preferential policies and investment support:
To attract large-scale projects that have a pervasive impact on the economy or are strategic in nature, the Investment Law 2020 has added a special investment support and incentive mechanism in Article 20.
2.1. Subjects eligible for preferential policies and special investment support:
CSPL: Clause 2, Article 20 of the Investment Law 2020
Special investment incentives and support policies are applied to projects that meet one of the following criteria:
– Projects with large investment capital:
- Investment projects to build innovation centers, R&D (research and development) centers with a total investment capital of VND 3,000 billion or more, disbursed at least VND 1,000 billion within 3 years from the date of issuance of the Investment Registration Certificate or investment policy approval.
- Investment projects in industries and professions with special incentives with capital of 30,000 billion VND or more and disbursement of at least 10,000 billion VND within 3 years.
2.2. Special preferential policies and investment support:
CSPL: Clause 5a Article 13, Clause 1a Article 14 Law on Corporate Income Tax 2008
| Tax rate | Tax exemption – Tax reduction |
| – Preferential tax rate: 5% reduction compared to normal investment preferential tax rate. (The normal investment incentive tax rate is 10% – 17% according to Clause 1, Article 13 of the 2008 Corporate Income Tax Law) – Application time: Maximum 15 years(Clause 5a, Article 13 of the Law on Corporate Income Tax 2008) | – Tax exemption for a maximum of 06 years – 50% reduction in tax payable for a maximum of no more than 13 years.(Clause 1a, Article 14 of the Law on Corporate Income Tax 2008) |
With a transparent legal corridor and attractive incentive policies under the Investment Law 2020, FDI investors in Vietnam have many opportunities to enjoy tax, land and industry incentives. DNP Viet Nam Law Firm is committed to accompanying and effectively consulting FDI enterprises via email info@dnp-law.com or 0987 290 273.
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