VIETNAM Law and Practice Contributed by: Thang Nguyen, Minh Nguyen and Nguyet Le, ACSV Legal
The applicable tax rates and taxable incomes may be different from those stated above where the taxpayer fails to meet any of the following requirements: • the taxpayer possesses a permanent estab - lishment in Vietnam in case of a corporate one, or is a tax resident in Vietnam in case of an individual one; • the taxpayer performs business in Vietnam for a period of 183 days or more; or • the taxpayer has adopted Vietnamese accounting regimes, registered with a tax authority and been issued with a tax code. The foreign contractors may benefit from double taxation agreements between Vietnam and their home country. 5.3 Available Tax Credits/Incentives Tax Incentives Vietnam grants tax incentives to its foreign inves - tors in order to attract more investment and to be more competitive for investors on the global stage. The existing regimes for these incentives vary greatly and differ between sectors and industries. Industries and Sectors Tax and land use incentives may apply to new or expanded projects in priority sectors (eg, educa - tion, healthcare, high-tech, R&D, environment, and infrastructure) or in incentivised regions. Projects with capital of at least VND6 trillion (USD240 million), disbursed within three years, may qualify if generating VND10,000 billion annual revenue or employing over 3,000 people. From 1 October 2025, this incentive will apply to projects with capital of at least VND12 trillion (USD480 million), disbursed within five years and using technology that meets the requirements prescribed by law.
Incentives also apply to high-tech firms, priority product manufacturers (eg, in textiles, electron - ics, auto, and shipbuilding), and investments supporting SMEs, start-ups, or distribution and
technical infrastructure. Auxiliary Industrial Zone
Infrastructure projects in Auxiliary Industrial Zones may receive land rent reductions, tax exemptions, 70-year lease terms, and priority access to state loans, ODA, and guaranteed foreign loans. Projects manufacturing supporting industry products under Decree 111/2015/ND-CP may enjoy CIT and import/export duty incentives, as well as priority in training and support pro - grammes for SMEs and start-ups. Eco-Industrial Zone Eco-enterprises in Eco-industrial Zones (EIZs) can enjoy preferential loans from the Viet - nam Environment Protection Fund, the Viet - nam Development Bank and/or other financial sources related to clean industry. They will have priority to participate in technical support or investment enhancement programmes. Finally, they shall be given priority in providing informa - tion related to the technology market and the possibility of co-operating in effecting industrial symbioses in the scope of production and busi - ness activities of these enterprises. Specific Areas Investors that invest in areas with poor socio- economic conditions, such as areas which have weak infrastructure or a lack of experienced labour force, or in remote rural areas, can qualify for tax reduction and exemption.
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