Look up and consult on the list of industries with investment incentives

List of industries with investment incentives brings many opportunities for businesses when implementing projects in Vietnam. Looking up and understanding information about industries and areas eligible for incentives helps businesses optimize legal and financial benefits. The article below by Long Phan will guide you how to look up the list of industries with investment incentives.

Objectives of preferential investment policies in Vietnam

Investment incentive policies are an important tool to attract investment capital into strategic industries and areas, while promoting socio-economic development. Specifically:

• Attract foreign investment (FDI): Create a favorable legal environment, reduce barriers and investment costs to promote international capital flows.
• Develop high-tech industries: Encourage investment in high-tech fields, renewable energy and supporting industries to improve national competitiveness.
• Support for disadvantaged areas: Preferential policies focus on areas with particularly difficult economic conditions or with limited infrastructure, reducing economic inequality between regions.
• Towards sustainable development: Special incentives for the fields of environmental protection, renewable energy, education and health to protect natural resources and ensure social security.

List of industries with special investment incentives

According to Appendix II of Decree 31/2021/ND-CP, occupations in the special incentive group include:

High technology, information technology, support technology

• High technology application.
• Production of products on the List of high-tech products encouraged for development.
• Manufacturing products on the List of supporting industrial products prioritized for development.
• Incubating high technology, incubating high-tech businesses; venture capital for high technology development; apply, research and develop high technology in accordance with the law on high technology; production of biotechnology products; training high-tech human resources; providing high-tech services.
• Producing software products, digital information content products, key information technology products, software services according to the provisions of law on information technology; produce network information security products and provide network information security services to ensure conditions according to the law on network information security; produce products formed from scientific and technological results according to the provisions of law on science and technology.
• Producing renewable energy, clean energy, energy from waste destruction.
• Production of composite materials, light construction materials, and rare materials.
• Manufacturing products in the List of key mechanical products

Agriculture

• Planting, caring for, nurturing, protecting and developing forests, developing production forests in bare lands and hills, planting large timber forests and converting small timber forests into large timber forests; developing non-timber forest products, restoring natural forests.
• Cultivation, processing, preservation of agricultural, forestry, and aquatic products, and processing of non-timber forest products.
• Producing, multiplying and cross-breeding plant varieties, animal breeds, forestry plant varieties, aquatic breeds, developing high-tech forestry plant varieties.
• Production, exploitation and refining of salt.
• Offshore fishing combines the application of advanced fishing methods; fisheries logistics services; Construction of fishing shipbuilding and fishing shipbuilding facilities.
• Sea rescue service.
• Invest in research and production of biotechnology products used as food.
• Manufacture of wooden products; Production of artificial boards, including: plywood, joinery boards, MDF boards.

Environmental protection, infrastructure construction

• Collect, process, recycle and reuse waste centrally.
• Construction and business of infrastructure of industrial parks, export processing zones, high-tech zones, and functional areas in economic zones.
• Investing in the development of water plants, power plants, water supply and drainage systems; bridges, roads, infrastructure, transportation and rail industry; airports, seaports, inland waterway ports; airports, railway stations and other particularly important infrastructure projects decided by the Prime Minister.
• Develop public passenger transportation in urban areas.
• Investment in construction, management and business of markets in rural areas.
• Investment in development, operation, and management of industrial cluster technical infrastructure projects.

Culture, society, sports, health

• Construction of social housing and resettlement housing.
• Investing in business establishments implementing hygiene and disease prevention.
• Scientific research on preparation technology and biotechnology to produce new drugs, new veterinary drugs, vaccines, and biological products for veterinary use.
• Production of medicinal materials and main drugs, essential drugs, drugs to prevent and control social diseases, vaccines, medical biological products, drugs from medicinal materials, oriental medicine; the drug’s patent or related exclusivity is about to expire; Applying advanced technology and biotechnology to produce human medicines meeting international GMP standards; Production of packaging in direct contact with drugs.
• Invest in methadone production facilities.
• Investing in the business of high-performance sports training and coaching centers and sports training and coaching centers for people with disabilities; building sports facilities with equipment, training and competition facilities that meet the requirements of organizing international tournaments; professional gymnastics and sports practice and competition facilities.
• Investing in business centers for geriatrics, psychiatry, and treatment of patients infected with Agent Orange; Care centers for the elderly, people with disabilities, orphans, and homeless children.
• Investing in the business of medical treatment – education – social labor centers; smoking cessation facility; HIV/AIDS treatment facility; public drug detoxification facility; private drug detoxification facility; Community drug addiction treatment consultation and support points at district level.
• Investing in the business of national museums and ethnic cultural houses; ethnic singing, dancing, and music troupes; theaters, studios, film production and film printing facilities; fine arts and photography exhibition house; producing, manufacturing, and repairing traditional musical instruments; maintain and preserve museums, ethnic cultural houses and art and culture schools; establishments and craft villages introduce and develop traditional industries and trades; investment and business in various types of folk performing arts; Investing in the National Library of Vietnam, public libraries of provinces and centrally run cities and libraries plays an important role.
• Invest in facilities to support the prevention and control of gender-based violence in the community for sex workers.

List of industries with common investment incentives

The normal investment incentive industry group still enjoys support policies but does not require as strict as the special group. Industry groups include:

• Science and technology, electronics, mechanics, material production, information technology;
• Agriculture;
• Environmental protection, infrastructure construction;
• Education, culture, society, sports, health;
• Other industries and professions.

For specific information about each industry with investment incentives, you can refer to Appendix II issued with Decree 31/2021/ND-CP.

Areas and forms of investment incentives

Areas eligible for incentives:

• Particularly difficult economic regions: Provinces on the preferential list according to Appendix III of Decree 31/2021/ND-CP.

For example: Cao Bang, Bac Kan, Ha Giang, Dien Bien, Lao Cai, Kon Tum, Tra Vinh.

• Industrial parks, export processing zones, economic zones

Forms of investment incentives:

Pursuant to Article 15 of the Law on Investment 2020, forms of investment incentives include:

1. Corporate income tax incentives include:

• Apply a lower corporate income tax rate than the normal tax rate for a term or the entire duration of the investment project;
• Tax exemption and tax reduction;
• Other incentives according to the provisions of law on corporate income tax;

2. Import tax exemption for goods imported to create fixed assets; raw materials, supplies, and components imported for production according to the provisions of law on export tax and import tax;
3. Exemption or reduction of land use fees, land rent, land use tax;
4. Accelerated depreciation, increasing deductible expenses when calculating taxable income.

Consulting services to enjoy incentives at Long Phan

With a professional team and knowledge about regulations, Long Phan is committed to helping customers complete quickly and ensure compliance with regulations. Long Phan will support customers:

• Consulting on the list of industries eligible for investment incentives;
• Consulting on forms of investment incentives;
• Consulting on preferential investment areas;
• Consulting on conditions to enjoy investment incentives;
• Consulting on preparing papers and documents to enjoy investment incentives;
• Instructions on the process of applying for investment incentives;
• Consulting and answering other related problems.

Looking up the list of industries with investment incentives and applying preferential policies is an opportunity for businesses to optimize costs and achieve long-term benefits. If you have any questions or need advice or support, please contact Long Phan via the hotline 0906735386 for detailed advice from our experts.