Currently, there are many foreign enterprises investing FPI capital in Vietnam. With its strategic geographical location and competitive workforce, Vietnam has become a country with high potential for FPI investment. The Vietnamese government has also improved business conditions and enhanced business incentives to attract more foreign investors. Let’s learn about List of business preferential for Investment FDI Vietnam thought this article
List of business preferential for Investment FDI Vietnam
Vietnam offers a list of business preferential for Investment FDI Vietnam, including the following:
Corporate income tax incentives
Vietnam offers various corporate income tax incentives to attract foreign investment. These incentives are typically based on the size, location, and type of investment project, and can include the following:
Corporate income tax holidays
Investors may be eligible for a tax holiday period of up to four years from the date they generate taxable income. This period may be extended in certain circumstances.
Reduced corporate income tax rates
After the tax holiday period, investors can benefit from reduced corporate income tax rates. The standard corporate income tax rate in Vietnam is 20%, but investors in certain industries or geographical areas may be eligible for reduced rates of 10% or 17%.
Tax exemptions
Investors may be eligible for exemptions from corporate income tax for a certain period of time, depending on the size and location of their investment. This can include exemptions from corporate income tax for up to two years for new investment projects, and up to three years for investment projects in certain disadvantaged areas.
Investment tax credits
Investors can receive investment tax credits for certain eligible investment projects, which can be used to offset their corporate income tax liabilities.
Loss carry-forward
Companies that suffer losses during the first few years of operation may be allowed to carry forward their losses for a certain period of time and offset them against future taxable income.
Investment credit and financing support
Vietnam offers various forms of investment credit and financing support to attract foreign investment. These incentives are typically provided by the government, through banks, or by specialized investment promotion agencies. They can include the following:
Investment credit
The Vietnamese government provides investment credit for certain investment projects, with favorable interest rates and repayment periods. The credit can be used for a range of purposes, including land leasing, construction, and machinery purchases.
Preferential loans
Foreign investors may be eligible for preferential loans from Vietnamese banks or international financial institutions, with low interest rates and flexible repayment terms.
Guarantees
The Vietnamese government can provide guarantees for foreign investors, which can help them secure loans from Vietnamese banks or other financial institutions.
Investment funds
Vietnam has established several investment funds to support foreign investment, including the Vietnam Development Bank, the Vietnam Export-Import Bank, and the Vietnam Investment Fund.
Investment insurance
The Vietnamese government provides investment insurance to foreign investors, which can help protect their investment against risks such as political instability, expropriation, and breach of contract.
Land incentives
Vietnam offers various land incentives to attract foreign investment. These incentives are typically provided by the government, and can include the following:
Land rental fee reductions
Foreign investors may be eligible for a reduction in land rental fees for the duration of their investment project.
Land use fee exemptions
Investors may be exempt from land use fees for a certain period of time, depending on the size and location of their investment project.
Priority land allocation
Foreign investors may be given priority in the allocation of land for their investment projects, especially in industrial zones or economic zones.
Land lease extensions
Investors may be granted an extension of their land lease period, depending on the size and location of their investment project.
Land clearance support
The Vietnamese government provides support for land clearance activities, including compensation for land acquisition and relocation costs.
Land rent exemptions or reductions
Investors may be eligible for land rent exemptions or reductions for a certain period of time, depending on the location and type of investment.
Import-export incentives
Vietnam offers various import-export incentives to attract foreign investment. These incentives are typically provided by the government, and can include the following:
Import duty exemptions
Investors may be exempt from import duties on certain equipment and machinery imported for their investment projects.
Export tax exemptions
Investors may be exempt from export taxes on certain products or services they produce and export.
Value-added tax (VAT) refunds
Investors may be eligible for a refund of VAT paid on inputs used in the production of exported goods or services.
Preferential tariff rates
Vietnam has signed free trade agreements (FTAs) with various countries and regions, which provide preferential tariff rates for imported and exported goods.
Duty-free zones
Vietnam has established several duty-free zones, which allow for the duty-free import and export of goods and services.
Export credit guarantees
The Vietnamese government provides export credit guarantees to protect investors against the risk of non-payment by foreign buyers.
Employment incentives
Vietnam offers various employment incentives to attract foreign investment. These incentives are typically provided by the government, and can include the following:
Priority in work permit issuance
Foreign investors may be given priority in the issuance of work permits for their employees.
Visa exemptions
Investors may be eligible for visa exemptions for their employees, depending on the size and location of their investment project.
Employee training subsidies
The Vietnamese government provides subsidies for employee training and development, which can help investors attract and retain skilled workers.
Labor cost subsidies
Investors may be eligible for subsidies on labor costs, including wages and social insurance contributions.
Social insurance exemptions
Investors may be exempt from paying social insurance contributions for a certain period of time, depending on the size and location of their investment project.
Special economic zones
Vietnam has established several special economic zones, which offer favorable tax and labor policies to attract foreign investment and facilitate economic development.
Infrastructure and utility incentives
Vietnam offers various infrastructure and utility incentives to attract foreign investment. These incentives are typically provided by the government, and can include the following:
Infrastructure development support
The Vietnamese government provides support for the development of infrastructure such as roads, bridges, and utilities, which can help investors to reduce their investment costs.
Preferential electricity rates
Investors may be eligible for preferential electricity rates, which can help to reduce their operating costs.
Water supply fee reductions
Investors may be eligible for reductions in water supply fees for their investment projects.
Waste treatment fee reductions
Investors may be eligible for reductions in waste treatment fees for their investment projects.
Industrial park infrastructure support
Vietnam has established several industrial parks, which offer infrastructure support and services to facilitate foreign investment.
Special economic zones
Vietnam has established several special economic zones, which offer infrastructure and utility incentives, including tax holidays, duty exemptions, and investment subsidies, to attract foreign investment and facilitate economic development.
Other incentives: Other incentives may include regulatory and administrative support, investment protection, and access to investment promotion services and resources.
It’s important to note that the specific incentives and preferential treatment offered to foreign investors can vary depending on the location, industry, and size of the investment. Interested investors should consult with local authorities or specialized investment promotion agencies for more information on the available incentives and investment opportunities in Vietnam. To know many information about business preferential for Investment FDI Vietnam, you contact gate2v.com thought hotline: (84) 916 545 618
