Investment Incentives for FDI Enterprises in Vietnam

Vietnam offers investment incentives to attract foreign capital into priority sectors and regions. Structuring a project to qualify can materially improve returns.

Types of incentives

• Corporate income tax (CIT) — preferential rates and tax holidays (a period of exemption followed by reduction) for qualifying projects.
• Import duty — exemptions for fixed assets and certain inputs.
• Land — exemption or reduction of land rent.

What unlocks them

Incentives generally depend on sector (encouraged fields such as high technology, supporting industries, R&D, environment) and location (disadvantaged areas, industrial or high-tech zones), and sometimes project scale. The Law on Investment sets the framework; the specific level depends on how the project is classified.

Getting it right

Incentives are recorded in the IRC and applied through tax filings. Mis-classifying the project, or failing to meet the committed conditions, can lead to clawback. Confirm eligibility before finalising the structure.

Frequently asked questions

What incentives can an FDI project get?

Preferential CIT rates and holidays, import-duty exemptions and land-rent reductions, depending on eligibility.

What determines eligibility?

Mainly the encouraged sector and the location, and sometimes project scale.

Can incentives be clawed back?

Yes, if the project fails to meet the conditions on which incentives were granted.

How LTV Law helps

LTV Law assesses incentive eligibility and structures projects to qualify. See our company-formation guide or contact our team.

This article is for general information only and does not constitute legal advice.