Vietnam is preparing to roll out one of its most ambitious policy frameworks to date in support of the digital technology industry. The Law on Digital Technology Industry, which will take effect at the beginning of 2026, introduces a wide range of unprecedented incentives designed to attract both domestic and foreign investors into high-value technology sectors.
Under the law, newly established digital technology companies will benefit from a full corporate income tax exemption during their first two years of operation, followed by a 50% reduction over the next four years. In addition, land rents will be waived for three years to ease the initial costs of setting up operations. These measures demonstrate the Government’s strong commitment to nurturing a competitive digital ecosystem.
Particular emphasis is placed on strategic fields such as semiconductors, artificial intelligence (AI), and high-performance computing (HPC). Enterprises in these areas will be eligible for a preferential corporate tax rate of just 10% for 15 years, alongside exemptions and reductions extending across a 13-year period, coupled with land rent waivers lasting up to 15 years. For large-scale projects exceeding VND 6 trillion (USD 230 million), the incentives are even more generous: corporate tax rates of 5% for up to 37 years, six years of complete tax exemption, and land rent waivers of more than two decades.
Beyond fiscal incentives, the law also addresses human capital development. The Government will prioritize building a skilled workforce for the digital economy, while foreign experts who meet eligibility criteria will be offered five-year temporary residence cards. Their spouses and children under 18 will likewise gain residency rights and access to education and employment opportunities in Vietnam.
This comprehensive package underscores Vietnam determination to position itself as a competitive hub for digital innovation, especially at a time when global demand for advanced technologies and secure supply chains is accelerating.
(Source: Vietnam News)
