Chapter 5
INVESTMENT SECTORS AND GEOGRAPHICAL AREAS, INVESTMENT INCENTIVES AND SUPPORT
SECTION 1. INVESTMENT SECTORS AND GEOGRAPHICAL AREAS
Article 27 Incentive investment sectors [shall comprise]
1. Manufacture of new materials and production of new energy; manufacture of high-tech products; bio-technologies; information technology; mechanical manufacturing.
2. Breeding, rearing, growing and processing agricultural, forestry and aquaculture products; production of salt; creation of new plant and animal variety.
3. Use of high technology and advanced techniques; protection of the ecological environment; research, development and creation of high-technology.
4. Labour intensive industries.
5. Construction and development of infrastructure facilities and important industrial projects with a large scale.
6. Professional development of education, training, health, sports, physical education and Vietnamese culture.
7. Development of traditional crafts and industries.
8. Other manufacturing and service sectors which require encouragement.
Article 28 Geographical areas of investment incentives
[Investment shall be encouraged in the following areas:]
1. Areas with difficult socio-economic conditions; areas with specially difficult socio-economic conditions.
2. Industrial zones, export processing zones, high-tech zones and economic zones.
Article 29 Sectors in which investment is conditional
1. Sectors in which investment is subject to conditions shall comprise:
(a) Sectors impacting on national defence and security, social order and safety;
(b) Banking and finance sector;
(c) Sectors impacting on public health;
(d) Culture, information, the press and publishing;
(dd) Entertainment services;
(e) Real estate business;
(g) Survey, prospecting, exploration and mining of natural resources; the ecological environment;
(h) Development of education and training;
(i) A number of other sectors in accordance with law.
2. Applicable to foreign investors, in addition to the sectors stipulated in clause 1 of this article, the sectors in which investment is subject to conditions shall comprise investment sectors in accordance with the schedule for implementation of international undertakings in international treaties of which the Socialist Republic of Vietnam is a member.
3. Where an enterprise with foreign owned capital invested in a sector in which investment was unconditional but during the course of the investment activity the list of sectors in which investment is conditional was amended with the result that the relevant sector was included, the investor shall be permitted to continue its investment activity in that sector.
4. The same investment conditions which are applicable to domestic investors shall be applied to foreign investors where Vietnamese investors hold more than fifty one (51) per cent of the charter capital of an enterprise.
5. Based on the requirements for socio-economic development in each period and consistent with the undertakings in international treaties of which the Socialist Republic of Vietnam is a member, the Government shall regulate the list of investments subject to conditions, the conditions applicable to the establishment of economic organizations, the forms of investment, and opening the market in a number of sectors as applicable to foreign investors.
Article 30 Sectors in which investment is prohibited
[Investment activities shall be prohibited in the following sectors:]
1. Projects which are detrimental to national defence and security, and the public interest.
2. Projects which are detrimental to historical and cultural traditions and ethics, and Vietnamese fine customs.
3. Projects which harm the people’s health, or which destroy natural resources and the environment.
4. Projects for the treatment of toxic wastes brought into Vietnam; projects for the manufacture of any type of toxic chemicals or for the use of chemical agents prohibited by international treaties.
Article 31 Promulgation of lists of investment incentive sectors and geographical areas of investment incentives, and of sectors in which investment is conditional
1. Based on the master plan and strategies for socio-economic development for each period and undertakings in international treaties of which the Socialist Republic of Vietnam is a member, the Government shall issue or amend and add to the list of investment incentive sectors, the list of sectors in which investment is conditional, the list of sectors in which investment is prohibited, the list of geographical areas of investment incentives.
2. Ministries, ministerial equivalent bodies and people’s committees of provinces and cities under central authority (hereinafter referred to as provincial people’s committees) shall not be permitted to issue regulations specifying sectors in which investment is prohibited and sectors in which investment is conditional, or specifying investment incentives which exceed the brackets stipulated by law.
SECTION 2. INVESTMENT INCENTIVES
Article 32 Applicable entities and conditions for investment incentives
1. Investors with investment projects in the investment incentive sectors and geographical areas stipulated in articles 27 and 28 of this Law shall be entitled to the incentives as stipulated in this Law and other provisions of the relevant laws.
2. The investment incentives stipulated in clause 1 of this article shall be applicable to new investment projects and investment projects for expansion of scale, for raising output capacity or business capacity; for renovation of technology or raising product quality, or for reducing environmental pollution.
Article 33 Tax incentives
1. Investors having projects within the categories stipulated in article 32 of this Law shall be entitled to preferential tax rates, the duration of entitlement to such rates and the duration of exemption from and reduction of tax in accordance with the law on tax.
2. Investors shall be entitled to tax incentives on that portion of income which is distributed to them from an activity being capital contribution or purchase of shareholding in an economic organization in accordance with the law on tax after such organization has paid in full corporate income tax.
3. Investors shall be exempt from payment of import duty on equipment, materials, means of transportation and other goods for implementation of investment projects in Vietnam in accordance with the Law on Export and Import Duties.
4. Income from activities of technology transfer applicable to projects entitled to investment incentives shall be exempt from income tax in accordance with the law on tax.
Article 34 Carrying forward losses
If an investor suffers losses after completion of tax finalization with the tax office, it shall be permitted to carry its losses forward to the following year, and the amount of such losses shall be set off against taxable income for the purposes of corporate income tax in accordance with the Law on Corporate Income Tax. The period for carrying forward losses shall not exceed five years.
Article 35 Depreciation of fixed assets
Investment projects in investment incentive sectors and geographical areas and business projects with high economic efficiency shall be subject to accelerated depreciation of fixed assets; the maximum rate of depreciation shall not be more than twice the level of depreciation as stipulated by regulations on depreciation of fixed assets.
Article 36 Land use incentives
1. The term of land use of an investment project shall not exceed fifty (50) years; with respect to projects with a large amount of invested capital and a slow rate of capital recovery, projects investing in areas with difficult socio-economic conditions and projects investing in areas with specially difficult socio-economic conditions which require a longer term, the term of allocation or lease of land shall not exceed seventy (70) years.
If at the expiry of a term of land use an investor with [a record of] good compliance with the law on land has a requirement for continued land use, the competent State body shall consider an application for extension of the term of land use in conformity with the approved land use zoning.
2. Investors which invest in investment incentive sectors and geographical areas shall be entitled to an exemption from payment of or a reduction of land rent and land use fees in accordance with the law on land and the law on tax.
Article 37 Incentives applicable to investors who invest in industrial zones, export processing zones, high-tech zones, and economic zones
Based on the conditions for socio-economic development in each period and the principles stipulated in this Law, the Government shall provide for incentives applicable to investors investing in industrial zones, export processing zones, high-tech zones and economic zones.
Article 38 Procedures for implementation of investment incentives
1. With respect to domestic investment projects in the category for which investment is not registered and projects in the category for which investment is registered as stipulated in article 45 of this Law, investors shall, on the basis of the incentives and conditions for investment incentives stipulated by law, assess themselves incentives and shall conduct procedures at the competent State body for investment incentives.
If an investor requests the certification of investment incentives, it shall conduct the procedures for investment registration in order for the State administrative body for investment to record investment incentives in the investment certificate.
2. With respect to domestic investment projects in the category for which there must be evaluation for investment as stipulated in article 47 of this Law and which satisfy the conditions for incentives, the State administrative body for investment shall record incentives in the investment certificate.
3. With respect to foreign invested projects which satisfy the conditions for incentives, the State administrative body for investment shall record investment incentives in the investment certificate.
Article 39 Circumstances in which incentives may be extended
Where encouragement of the development of an especially important branch, a zone or a special economic zone is required, the Government may make a submission to the National Assembly for its consideration and issuance of a resolution on investment incentives other than those stipulated in this Law.
SECTION 3. INVESTMENT SUPPORT
Article 40 Support for technology transfer
1. The State of Vietnam shall create favourable conditions for and ensure the lawful rights and interests of parties to technology transfers (including capital contribution in the form of value of technology) in order to implement investment projects in Vietnam in accordance with the law on technology transfer.
2. The State shall encourage the transfer into Vietnam of advanced technology, source technology and technology in order to create new products, to improve production capacity, competitiveness and product quality; and the saving and effective use of raw materials, fuel, energy and natural resources.
Article 41 Training support
1. The State shall encourage the establishment of assistance funds for human resources training made up by contributions from domestic and foreign organizations and individuals.
Expenses incurred by enterprises for training shall be permitted to be included in reasonable expenses for the purposes of calculation of taxable income subject to corporate income tax.
2. The State assists with funding from the State Budget for employee training in enterprises by way of training assistance programs.
Article 42 Support for and encouragement of development of investment services
The State shall encourage and provide support for organizations and individuals to provide the following investment support services:
1. Investment consultancy, management consultancy.
2. Intellectual property and technology transfer consultancy.
3. Vocational education, technical training and training on management skills.
4. Provision of market information, information about science, technical matters and technology, and other economic and social information at the request of investors.
5. Marketing, and investment and trade promotions.
6. Establishment of and participation in social organizations and socio-professional organizations.
7. Establishment of design and testing centres in order to assist the development of medium and small-sized enterprises.
Article 43 Investment in infrastructure systems for industrial zones, export processing zones, high-tech zones and economic zones
1. Based on the master plan for the development of industrial zones, export processing zones, high-tech zones and economic zones as approved by the Government, ministries, ministerial equivalent bodies and provincial people’s committees shall formulate investment master plans for and arrange construction of technical and social infrastructure systems outside the fence of industrial zones, export processing zones, high-tech zones and economic zones which are under their management.
2. With respect to a number of localities containing areas with difficult socio-economic conditions and areas with specially difficult socio-economic conditions, the State shall provide partial assistance to localities in order to invest jointly with investors in the development of infrastructure facilities inside the fence of industrial zones and export processing zones in accordance with regulations of the Government.
3. The State shall provide investment capital from the State Budget and preferential credit funds in order to assist investment in the development of technical and social infrastructure systems of high-tech zones and economic zones, and shall apply a number of methods of raising capital in order to invest in the development of infrastructure facilities of high-tech zones and economic zones.
Article 44 Entry and exit visas
Investors carrying out investment activities and experts and technicians being foreign individuals who work regularly for an investment project in Vietnam and their family members shall be issued with multiple entry and exist visas. The maximum term of a visa shall be five years on each occasion of issuance of a visa.
Tìm kiếm
Luật đầu tư 2005 (Bản Pdf)
Luật đầu tư 2005 (Bản Word)