ENTITIES ELIGIBLE FOR INVESTMENT INCENTIVES

ENTITIES ELIGIBLE FOR INVESTMENT INCENTIVES

Currently, to attract foreign investment, most countries use investment incentives in addition to investment guarantee measures. However, according to the law, is everyone entitled to this preferential policy? To enjoy this preferential treatment from the State, who should pay attention to? Let's find out this with HTC Vietnam Law Firm through the article below.

1. Investment incentive measures

Investment incentives are State granted incentives to investors when conducting investment activities. These are measures to encourage and enable investors to carry out business investment activities or to make certain interest with investors in several fields and areas in order to create economic restructuring in line with the socio-economic development strategy. Investment incentives include investment incentives by location and by investment field. The State can apply incentives in tax policy; credit; Land-use and natural resources policy; import and export policies and other incentives.

2. Entities eligible for investment incentives

Not all investment projects are eligible for investment incentives, only specific projects that meet certain requirements are eligible for incentives. Based on the investment field and investment area to determine the entities eligible for investment incentives.

Based on the investment field criteria, investors will enjoy investment incentives when executing the project.

- Manufacturing of new materials, new energy, clean energy, renewable energy; manufacturing of products with an added value of 30% or more; energy-saving products;

- Manufacturing of key electronics, mechanical products, agricultural machinery, automobiles, automobile parts; shipbuilding;

- Manufacturing of IT products, software products, digital contents;

- Breeding, growing and processing of agricultural products, forestry products, aquaculture products; afforestation and forest protection; salt production; fishing and fishing logistics services; production of plant varieties, animal breeds and biotechnology products;

- Collection, treatment, recycling or reuse of waste;

- Investment in development, operation, management of infrastructural works; development of public transportation in urban areas;

- Pre-school education, general education, vocational education, higher education;

- Medical examination and treatment; manufacturing of medicinal products and medicinal materials, storage of medicinal products; scientific research into preparation technology and biotechnology serving creation of new medicinal products; manufacturing of medical equipment;

- Investment in sports facilities for the disabled or professional athletes; protection and promotion of value of cultural heritage;

- Investment in geriatric centers, mental health centers, treatment for agent orange patients; care centers for the elderly, the disabled, orphans, street children;

- People's credit funds, microfinance institutions;

- Manufacturing of goods and provision of services that create or participate in value chains and industry linkage clusters.

Based on the criteria of investment areas, projects are implemented in disadvantaged areas or extremely disadvantaged areas. Investment projects in industrial parks, export processing zones, hi-tech zones and economic zones will enjoy investment incentives.

In addition, the law on investment also bases on the investment capital and the number of employees to determine the entities eligible for investment incentives, namely:

- Any investment project whose capital is at least VND 6,000 billion of which at least VND 6,000 billion is disbursed within 03 years from the issuance date of the investment registration certificate or decide on investment guidelines;

- Investment projects located in rural areas and employing at least 500 employees; investment projects that employ persons with disabilities in accordance with regulations of law on persons with disabilities;

- Hi-tech enterprises, science and technology enterprises, science and technology organizations; technical incubators, technology for environment protection;

- Start-up projects, national innovation centers and research and development centers;

- Or investment in business in small and medium-sized enterprises’ product distribution chain; investment in business in technical establishments supporting small and medium-sized enterprises, small and medium-sized enterprise incubators;

Legal consultation services on investment incentives:

HTC Vietnam Law Firm provides legal consultation service regarding investment incentives:

- Legal advice on investment incentives;

- Legal advice on procedures for applying investment incentives;

- Legal advice on investment;

- Legal advice investment preferential locations; consulting industries and professions with investment incentives.

Service Quality Commitment

The following are HTC Vietnam Law Firm’s Principles of Operation: Conscientious - Effective - Reliable. HTC Vietnam Law Firm assures quality, specifically as follows:

- Ensure that the work is carried out according to the agreed schedule, in accordance with the law, and in accordance with the code of ethics and Codes of Conduct of Vietnamese lawyers.

- Give priority to customers' interests, and make every effort to provide customers with the best quality of service.

- Respect the confidentiality of information that clients provided and information pertaining to the clients.

We are looking forward to a long-term cooperation.

Best Regards!

(Writer: Đinh Thị Tuyết Mai/189; Date: 12/03/2022)

Translator: Pham Nguyen Nhat Linh