Vietnam ordinance gives incentives to high-tech parks and venture companies

Decree 10/2024/ND-CP, which will come into force from March 25, 2024, aims to streamline processes and strengthen support for investors in high-tech parks and high-tech business activities in Vietnam.

On February 1, 2024, the Government introduced Decree No. 10/2024/ND-CP outlining regulations regarding high-tech zones.

This Decree covers the establishment and expansion procedures of high-tech zones, investment incentives and support policies for projects within these zones, and operational activities within high-tech zones.

Main benefits according to Decree 10/2024

Based on the October 2024 Decree, it will come into effect from 2024. March 25, 2024investors working on infrastructure projects in high-tech parks will enjoy a variety of benefits, including land rental exemptions and reimbursement of land clearing costs.

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Additionally, preferential interest rates for financing and access to capital will be made available within the established legal framework to support these efforts.

The October 2024 Decree also requires local governments to develop suitable residential areas and social infrastructure around high-tech parks to accommodate workers. These facilities can be built through public-private partnerships (PPPs) or private financing, increasing the overall attractiveness of these areas to prospective investors.

Manufacturing and export businesses operating within these parks will also benefit from export tax exemptions or reductions similar to those available in non-tariff zones.

Eligibility criteria for the establishment and expansion of high-tech parks

High-tech parks must be established under certain conditions.

• Complies with approved local and state planning plans.
• It has an appropriate land use range and is located in an appropriate natural area.
• It is conveniently located in terms of infrastructure and transportation.
• Connect with high-quality research and training institutions.
• Feasible plans for resource mobilization for technical and social infrastructure development, human resources and professional management teams.
• Build residential areas and public facilities nearby for professionals and workers who work in the high-tech park and are involved in the construction process of the high-tech park.
• Meet environmental protection requirements according to law.
• Ensure protection and security measures are in place.

The Decree lists the following conditions for the expansion of the high-tech park:

• The expanded area must meet the conditions outlined in Article 31 of the High Tech Law for the establishment of a high tech park.
• In the case of high-tech agricultural parks, the expansion area must meet the park establishment standards set out in Article 32 of the High-tech Law.
• The current high-tech park occupancy must be at least 60%.

Ho Chi Minh City authorities seek investment in major high-tech projects

Ho Chi Minh City, Vietnam's financial and economic hub, aims to attract investments totaling up to US$492 million in multiple research, production and service businesses in the high-tech sector.

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This includes approximately US$190 million allocated to five projects focused on electronics and semiconductors, and US$302 million earmarked for large-scale data center initiatives.

According to a recent announcement by the Ho Chi Minh City People's Committee, the Saigon Hi-Tech Park, one of three similar parks in the country, will allocate about 10 hectares of space for these proposed projects. , further details have not yet been decided. revealed.

Outlook

Vietnam is rapidly emerging as a promising destination for high-tech ventures.

As the country continues to prioritize technological advancement and industrial transformation to meet the needs of its young workforce and achieve national development goals, the government has launched a series of incentives and support measures to encourage investment in high-tech parks and technology companies. It has been introduced.

Vietnam's key industries, including high-tech companies, are eligible for corporate tax breaks, credit incentives, and land and water lease fee reductions.

important policy initiatives; Cabinet Order of March 2019is already encouraging high-tech companies to relocate to Vietnam by providing access to science/technology enterprise certification that unlocks various government incentives.

To learn more about incentives for doing business in Vietnam, read the following articles: Incentives for doing business in Vietnam and Tax incentives for foreign companies in Vietnam.