Vietnam Introduces New Incentives for Investment into Hi-tech Parks

Mar 2024

The Vietnamese Government has introduced new incentive packages to stimulate investments in hi-tech parks. Decree No. 10/2024/NĐ-CP stipulates that hi-tech parks will receive investment incentives equivalent to those granted to regions facing extremely challenging socio-economic conditions.

Under the decree, investment incentives such as corporate income tax, export-import taxes, land fees, and credit will be implemented in accordance with existing investment regulations. Investors in hi-tech parks will benefit from a corporate income tax rate of 10% per year for 15 years, with full exemption for the first four years and a subsequent 50% reduction for nine consecutive years.

Additionally, investors and projects within hi-tech parks will be prioritized for participation in training and recruitment support programs. They will also receive assistance for research and development, technology application, technology transfer, hi-tech agriculture, and innovation.

The new decree is expected to attract private investors to contribute to the development of technical and social infrastructure within hi-tech parks. Meanwhile, state budget investments and official development assistance will be directed toward developing research centers, large-scale international standard laboratories, high-tech incubators, training centers, and information infrastructure.

Expansion of existing hi-tech parks will be permitted if their occupancy rate reaches or exceeds 60%. This decree is anticipated to spur the development of hi-tech parks, addressing previous limitations in mechanisms.

Currently, Vietnam boasts three hi-tech parks located in Ho Chi Minh City, Hanoi, and Danang. Major tech companies like Viettel, FPT, Hanwha Aerospace, and Nidec are among the notable investors in these parks.

(Source: Vietnam News)

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