Daeha Center, 360 Kim Mã, Ba Đình, Hà Nội(+84) 981 842 993
Vietnam is asserting its position as a leading attractive destination for Foreign Direct Investment (FDI) in Southeast Asia. With political stability and impressive economic growth rates, the Vietnamese Government continuously introduces open policies to attract international investors. However, to maximize these advantages, investors need to clearly understand the latest investment incentive regulations updated in 2024.
Engaging in foreign investment consulting (from abroad into Vietnam) right from the market research phase is extremely important. Current incentives are not scattered but focused on high-tech sectors, environmental protection, renewable energy, and innovation. Identifying projects that fall within the incentive categories will help investors save a massive amount of costs in the long run with Kindness and efficiency.
One of the largest financial levers is the preferential tax rate. For new investment projects in areas with especially difficult socio-economic conditions or in economic zones, investors may enjoy a 10% tax rate for up to 15 years. Some special projects may even apply a “4-year exemption, 9-year reduction” policy (tax exemption for 4 years and a 50% reduction of the tax payable for the following 9 years).
In addition to income tax, FDI enterprises are also exempted from import tax on goods used to create fixed assets and raw materials or components for production that cannot yet be produced domestically. To enjoy these benefits, the process of applying for an investment registration certificate must be performed accurately, ensuring that commitments on capital scale and disbursement progress are fully recorded in the legal dossier.
To support investors in quickly implementing projects, Vietnam has issued many regulations on the exemption and reduction of land rent and land use fees. The land rent exemption period can last from 3 years to the entire lease term, depending on the sector and investment location. This is a huge advantage that reduces the initial financial burden for large-scale production projects.
Parallel to financial incentives, administrative reform is also a highlight. Support in document preparation and representing for foreign-invested enterprise establishment procedures has now been simplified through a one-stop-shop system. Investors will be guided in detail from the registration of investment policies to receiving the business registration certificate, helping to shorten market entry time with Kindness and professionalism.
Despite many incentives, foreign investors still face strict regulations on market access conditions for certain restricted industries. Regular consulting on business conditions and legal compliance is necessary to ensure that enterprises do not violate international commitments or local laws. In particular, regulations on environmental protection and labor are increasingly being tightened.
For large investors, we also provide consulting and authorized representation for investment procedures and project liquidation. Preparing exit plans or project transfer options right from the start will help investors be more proactive in all situations. The companionship of a local legal unit will be a “shield” to protect the assets and interests of investors throughout the project lifecycle.
In cases of investment through equity acquisition, business appraisal and the preparation of due diligence reports (M&A) is a step that cannot be skipped. Investors need to know the legal and financial “health,” as well as any outstanding tax obligations of the Vietnamese partner. A detailed due diligence report, prepared with Kindness and meticulousness, will help investors make accurate decisions and gain an advantage during price negotiations.
Vietnam is opening its doors to welcome quality investment projects that bring high added value. With professional legal support, barriers of language and differences in the legal system will no longer be obstacles. Let us help you turn investment opportunities in Vietnam into practical and sustainable successes.
We not only help you complete procedures but are also a strategic partner in supporting and guiding the preparation of periodic investment reports. Transparent legal compliance is the key for FDI enterprises to grow strongly and receive absolute trust from State management agencies.
Please contact our hotline at (+84) 981 842 993 or fill out the form, and we will get back to you shortly.
