The Three Pillars of FDI Incentives
Tax Incentives
Reduced CIT rates, tax holidays, and extended reduction periods to maximize profitability.[1]
Duty Exemptions
Import duty exemptions on fixed assets, raw materials for export production, and components for high-tech projects.
Land Use Reductions
Preferential land rent policies, including long-term exemptions and reductions in priority zones.
Decoding CIT Incentives
Standard CIT is 20%, but preferential packages are highly competitive. Comparison of two main tiers.[2]
Spotlight: High-Tech & R&D
Vietnam targets “high-quality” FDI in high-tech, digital transformation, and R&D with the most attractive benefits.[3]
Key Benefits for High-Tech Projects
- ✔Extended CIT Rate: 10% for up to 30 years.
- ✔Full Tax Holiday: 4 years exemption + 9 years 50% reduction.
- ✔Duty-Free Materials: 5-year import tax exemption on inputs for production.
- ✔Personnel Support: Training funds & preferential policies for experts.
Incentives for Large-Scale Projects
Strategic mega-projects or R&D centers can receive even lower CIT.
Location Matters
Incentives are tiered by geography. Designated zones unlock the highest benefits.
Highest Incentive Level
Eligible for 10% CIT, 4-year exemption, 9-year reduction, and maximum land rent exemption.
Standard Incentive Level
Eligible for 17% CIT, 2-year exemption, 4-year reduction, plus land rent incentives.
Pathway to Investment Incentives
Register Investment
Declare all eligible incentives in the IRC application.
Qualify by Sector
Ensure your project matches incentivized sectors (high-tech, healthcare, R&D).
Select Location
Implement in incentivized zones (EZ, HTZ, SEDA/ESEDA).
Maintain Compliance
Uphold legal requirements to retain the benefits.
Sources & Definitions
Abbreviations
- CIT: Corporate Income Tax
- FDI: Foreign Direct Investment
- R&D: Research & Development
- IRC: Investment Registration Certificate
- HTZ/EZ/SEDA/ESEDA: Incentivized zones/areas
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