Unlike a 2005 Investment Law, a new Investment Law in 2014 includes clearer sum about business sectors that validate for investment incentives, such as: prolongation of new materials, new energy, purify energy, renewable energy; prolongation of products with during slightest 30 per cent value added; and energy-saving products.
In agriculture, a sectors being offering incentives are: cultivation and estimate of agriculture, forestry, and aquaculture products; afforestation and timberland protection; salt production; fishing and subordinate fishing services; prolongation of plant varieties, animal breeds, and biotechnology products.
In addition, business lines in credentials and medical are privately regulated underneath a new Investment Law. Accordingly, a margin of credentials consists of a following sectors: preschool education, mandatory education, vocational education.
The sectors in medical are: medical hearing and treatment; prolongation of medicines, medicine ingredients, essential medicines, medicines for impediment and diagnosis of intimately transmitted diseases, vaccines, biological, herbal medicines, oriental medicines; systematic investigate on credentials record and/or biotechnology portion origination of new medicines; investment in geriatric centres, mental health centres, diagnosis for representative orange patients; caring centres for a elderly, a disabled, orphans, and travel children.
Similarly, other sectors entitled to investment preferences, such as information technology, sports, construction and growth of infrastructure, are also clearly enclosed in a reach of a new Investment Law.
Whether a choice of invested areas falls into a abovementioned categories of business sectors, investors will still be authorised to suffer investment incentives in a following cases:
The investment project's collateral is 6 trillion Vietnamese dong and more;
At slightest 6 trillion in Vietnamese dong for a investment plan will be disbursed within 3 years from a date of distribution of a Certificate of Investment Registration or preference on investment policies;
Investment projects conducted in farming areas that occupy during slightest 500 workers;
Hi-tech enterprises, enterprises or organisations handling in scholarship and technology
However, PLF would like to indicate out a fact that not each investment plan is entitled to accept incentives, that are usually practical to new investment projects and enlargement projects.
It also means that nonetheless certain investment projects are implemented underneath a aforementioned business sectors or prove a conditions listed above, they shall not be available to suffer investment preferences if determined and brought into operation before a new regulations take effect. Only when investors control new investment projects or enhance a stream ones and accommodate a conditions on incentives shall such incentives be applied.
Noticeably, projects investing in vegetable exploitation, prolongation and trade of products and services theme to dig taxation (except for engine car production) shall not accept a investment incentives mentioned above.
Furthermore, a 2014 Investment Law also offers some-more forms of support than a 2005 Investment Law, specifically: support for a growth of technical infrastructure and amicable infrastructure within and over a fringe of projects of tellurian resources development; credit support; and support for relocation of production comforts from civic areas.
Source: Greeting Vietnam
Key words: new, investment, incentives, Vietnam
