Incentives for Businesses in Centralized Digital Technology Zones

Incentives for businesses in centralized digital technology zones are strictly regulated to promote data infrastructure and software industry in Vietnam and attract investment flows into specialized functional sub-zones. In the following article, Long Phan Consulting will provide detailed analyses of current regulations on models, functions, and support mechanisms for businesses in centralized digital technology zones.

What is a concentrated digital technology zone?

Based on Clause 6, Article 3 of the Law on Digital Technology Industry 2025, a centralized digital technology zone is understood as follows:

A Centralized Digital Technology Zone is a functional zone concentrating on activities of research and development, support, training, promoting innovation, incubating digital technology and digital technology enterprises, producing and trading digital technology products and services, providing infrastructure, supplying services to organizations, enterprises, individuals, and other activities within the zone.

>>>See more: Business License from Projects of Encouraged High-Tech Products

What are the functions of a concentrated digital technology zone?

According to Article 6 of Decree 354/2025/ND-CP, the functions include:

1. R&D: Research, development, application, and transfer of digital technology.
2. Production & Trading: Software products, digital technology services; hardware/electronic products under the Key Digital Technology Products/Services List.
3. Semiconductors: R&D, design, manufacturing, packaging, testing of semiconductor chips; manufacturing equipment/tools for the semiconductor industry.
4. Training: Training and fostering digital technology industry human resources.
5. Incubation: Incubating digital technology and digital enterprises; trade and investment promotion.
6. Infrastructure Provision: Providing modern, synchronous digital infrastructure (high-speed internet, 5G/6G); stable power supply (minimum two independent sources); water treatment meeting standard A.
7. Service Provision: Applying smart and green digital governance models; supporting administrative procedures for businesses and experts.

What conditions must be met to establish a concentrated digital technology zone?

According to Article 9 of Decree 354/2025/ND-CP, the project must meet the following criteria:

• Policy Alignment: Consistent with state policies and national/local strategies on digital technology industry development.
• Planning Conformity: Consistent with information and communication infrastructure planning, provincial planning, and land use planning.
• Legal Adjustments: If not yet consistent with planning, adjustments must be made before establishment.
• Sustainability & Security: Meet regulations on national defense, security, environmental protection, climate change response, and resource preservation.
• Scale & Function: Meet criteria on area scale (minimum 5ha generally, or 1ha for software/digital content zones) and functional zoning.

Incentives for businesses in the concentrated digital technology zone.

Based on Article 17 of Decree 354/2025/ND-CP:

1. General Incentives:

• Applied investment incentives for areas with extremely difficult socio-economic conditions.
• Infrastructure construction projects and digital industry projects enjoy incentives for special investment incentive sectors.
• Land Rent Exemption/Reduction: For infrastructure and digital industry projects using land in the zone.
• State Support: Support for investing in technical infrastructure inside the zone and connecting infrastructure (roads, electricity, water); organizing public transport to the zone.
• Housing Support: Projects building housing/public utilities for workers enjoy incentives under housing and real estate laws.

2. Human Resource Incentives:

• Tax: Exemption or reduction of Personal Income Tax for high-quality digital technology talents/human resources.
• Attraction Policies: Enjoy policies to attract and employ talents according to Articles 19 and 20 of the Law on Digital Technology Industry 2025.

3. Special Investment Procedures:

• Applied for R&D centers, data centers, semiconductor projects (design, manufacturing, packaging, testing), and strategic/high-tech digital product projects.

4. Intellectual Property Support:

• Support for costs of searching, registering, maintaining, and protecting intellectual property rights for inventions, industrial designs, trademarks, software copyrights, and digital data arising from activities in the zone.

5. Export Processing Enterprises (EPEs):

• EPEs in the zone (separated by fences/gates, subject to customs supervision) enjoy specific regulations for EPEs in industrial/economic zones regarding export/import duties and investment procedures.

Long Phan Consulting provides consulting services on incentives for businesses in the digital technology zone.

Long Phan Consulting provides comprehensive consulting services related to incentives for businesses in centralized digital technology zones. Our team of experienced experts supports clients in carrying out investment certificate registration procedures and enjoying the most optimal tax policies. We structure our support into the following key areas:

• Providing advice on the eligibility requirements for businesses to receive incentives in concentrated digital technology zones;
• Assisting with document review;
• Providing detailed consultation and analysis of risks and opportunities when implementing projects in concentrated digital technology zones;
• Providing guidance and assistance with the procedures for registering and establishing businesses in concentrated digital technology zones;
• We represent our clients in dealings with government agencies.

Frequently Asked Questions about Incentives for Businesses in the Digital Technology Park

Below, Long Phan Consulting provides some frequently asked questions regarding incentives for businesses in concentrated digital technology zones. We invite interested clients to refer to the following information:

What will the model for the management, operation, and exploitation of the centralized digital technology zone be like from January 1, 2026?

Based on Article 19 of Decree 354/2025/ND-CP, the model for the unit managing, operating, and exploiting concentrated digital technology zones from January 1, 2026, is stipulated as follows:

• For concentrated digital technology zones invested with state budget funds, the provincial People’s Committee decides to establish a management unit or assign a subordinate agency or a wholly state-owned enterprise under the local authority to manage, operate, and exploit the concentrated digital technology zone, and to issue regulations on its operation.
• For concentrated digital technology zones invested with other sources of capital, the investor decides on the appropriate model for the management, operation, and exploitation of the concentrated digital technology zone in accordance with the law.

Do employees working in the concentrated digital technology zone receive tax incentives?

Yes. According to Clause 2, Article 17 of Decree 354/2025/ND-CP, talented and high-quality human resources working here will be exempt from or receive a reduction in personal income tax as prescribed. In addition, they will also benefit from specific local and national policies to attract and utilize talent.

What criteria must the building density of the concentrated digital technology zone meet?

According to Clause 3, Article 8 of Decree 354/2025/ND-CP, the building density of a concentrated digital technology zone must meet the following criteria:

• The maximum net building density for a building or production facility plot is 60% of the plot area.
• The ratio of green spaces, transportation, and technical areas must be at least 21% of the total area of ​​the concentrated digital technology zone.

What criteria must the area and workforce of a concentrated digital technology zone meet from January 1, 2026?

Based on Article 7 of Decree 354/2025/ND-CP, the scale, area, and human resources of concentrated digital technology zones from January 1, 2026, must meet the following criteria:

In terms of area size:

• It must have a minimum area of ​​05 hectares or more;
• For concentrated digital technology zones focusing solely on software production, digital content products, and digital technology services, the minimum land area must be 1 hectare or more.

Regarding human resources:

• There must be at least 2,000 digital technology industry workers employed in a concentrated digital technology park. For concentrated digital technology parks that only carry out software production, digital content creation, and digital technology service provision, there must be at least 1,000 digital technology industry workers.
• The workforce in the digital technology industry accounts for at least 60% of the total workforce in concentrated digital technology zones.

Can businesses build their own office buildings within a concentrated digital technology zone?

Yes. According to Article 8 of Decree 354/2025/ND-CP and Article 24 of the 2025 Law on Industry and Technology, enterprises can lease land with existing infrastructure to invest in the construction of facilities for production and research, or lease existing offices and factories. However, the architecture and functionality must conform to the functional zoning plan.

Are export processing enterprises (EPEs) allowed to operate within a concentrated digital technology zone?

Permitted. If businesses meet the conditions regarding separation by fences, gates, and customs supervision (similar to a free trade zone) as stipulated in Clause 5, Article 17 of Decree 354/2025/ND-CP, they will enjoy separate import and export tax incentives like export processing enterprises in industrial parks.

Conclusion

Incentives for businesses in centralized digital technology zones under Decree 354/2025/ND-CP are a golden opportunity to expand production and business. Clients need to master the conditions and legal sequences to not miss out on tax and land benefits.

Long Phan Consulting is always ready to support resolving all in-depth legal obstacles for clients. Please contact via hotline 1900636389 for detailed advice.