One of the main objectives of the current Investment Law 2020 is to improve the efficiency of foreign investment cooperation to keep up with the ongoing 4.0 revolution globally. This has been concreted by the addition of many new regulations on domestic and foreign investment incentives and support, taking advantage of domestic resources as well as promoting the attraction of FDI into Vietnam. In order for investors to have a better view of special investment incentives and support, Hong Bang Law Firm would like to send to Clients advice as follows:
Legal grounds
Investment Law 2020;
Subjects entitled to special investment incentives and supports
Groups receiving special investment incentives and support
The group is entitled to investment incentives and support, especially investment projects that have a great impact on socio-economic development. These projects include:
- Newly established investment projects (including the expansion of such newly established projects) of innovation centers, research and development centers with a total investment capital of VND 3,000 billion or more, disbursement of at least VND 1,000 billion within 03 years from the date of issuance of investment registration certificates or approval of policies investment; national innovation centers established under decisions of the Prime Minister;
- Investment projects of special investment sectors or trades with an investment capital size of VND 30,000 billion or more, disbursement of at least VND 10,000 billion within 03 years from the date of issuance of investment registration certificates or approval of investment policies;
- The National Innovation Center is established under the decision of the Prime Minister and all its own establishments are located outside the head office of the Center;
- Particularly important investment projects or special administrative-economic units.
It can be seen that the Investment Law 2020 has set criteria for the sectors, investment sectors, total registered investment capital and the time limit for disbursement of investment capital to distinguish the project with special incentives and support compared to other investment incentives.
The group is not entitled to special investment incentives and support
- Investment projects which have been granted investment certificates, investment registration certificates or decisions on investment guidelines before January 1, 2021;
- Mining investment projects;
- Investment projects on production and trading of goods and services subject to special excise tax (except for projects on production of automobiles, aircraft and yachts);
- Investment projects on construction of commercial houses.
Special investment incentives and support
Preferential level
Projects are entitled to special investment incentives as prescribed in the Law on Corporate Income Tax and the law on land. comprise:
- Incentives on corporate income tax:
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- Tax rate Reduced by 5% tax rate, not exceeding 37.5 years
- Regarding the period of tax exemption/ reduction: 6-year exemption, 13 years of reduction (50% tax payable)
- Preferential land rent, water surface rent:
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- The exemption period of land rent and water surface rent does not exceed 22.5 years
- The reduction is not more than 75% of land rent
Forms of investment support
Regarding investment support, projects are entitled to special investment support similar to other enterprises entitled to investment support, including the following forms of support:
- Supporting the development of technical and social infrastructure systems inside and outside the investment project fence;
- Support training and development of human resources;
- Credit support;
- Support access to production and business premises; supporting production and business establishments to relocate under decisions of state agencies;
- Scientific and technical support, technology transfer;
- Support market development, information provision;
- Support research and development.
In general, new regulations on special investment incentives and support policies have been on a successful path towards increasing Vietnam’s competitiveness in attracting domestic and foreign investors, becoming an attractive destination for foreign investors. Hong Bang Law Firm with a team of experienced experts in the field of investment enterprises always accompany the business and are ready to provide the most professional legal consulting services to investors.
Services provided by Hong Bang Law
Hong Bang Law is a company with 10 years of experience in consulting in the field of foreign investment. We have supported many foreign investors to accompany them during the implementation of investment projects in Vietnam.
Hong Bang Law will accompany customers with consulting and supporting services in various fields such as:
- Service of applying for Investment Registration Certificate for foreign investors in Vietnam
- Service for approval of investment policy
- Service of establishing a foreign-invested company
- Service of establishing representative offices and branches of foreign companies
- Service of changing contents of Investment Registration Certificate
- Investment project transfer service
- And many other services
If you need more detailed advice and answers as well as how to access this service, please contact directly our Lawyer Nhat Nam via hotline: 0912.35.65.75, 0912.35.53.53 or call the toll free legal consultation hotline 1900.6575 or send a service request via email: lienheluathongbang@gmail.com
Wishing you and your family good health, peace and success!
Best regards!
