The Vietnamese government offers numerous investment-related business incentives and is continually making further improvements through both reforms and by further upgrading its incentives to maintain the country’s high appeal to foreign investors.
Vietnam’s 2025 Law on Investment specifies the three forms of incentives available to companies operating in the country in Chapter III, Article 14.1:
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Corporate Income Tax |
Application of a lower rate of corporate income tax for a certain period of time or throughout the project execution; |
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Import Duties / Tax |
Exemption or reduction of import duties or tax on goods imported as fixed assets on raw materials, supplies, and parts used for the project; |
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Land rent and levies |
An exemption, reduction of land rents and land levy. |
Corporate Income Tax (CIT) incentives
Corporate Income Tax (CIT) Incentives are among the most attractive features of Vietnam’s business environment and represent one of the most significant investment incentives for foreign investors. These incentives are available to both foreign and domestic investors to encourage investment in sectors and regions aligned with national development strategies.
The key tax incentives available in Vietnam are summarized below.
The eligibility criteria and specific incentive schemes are stipulated in Vietnam’s Law on Investment, Law on Corporate Income Tax, and their respective implementing decrees and circulars.
Vietnam offers two principal types of CIT incentives:
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Preferential tax rates – reduced CIT rates applicable for a defined period or, in some cases, for the entire project duration.
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Tax holidays – exemptions or reductions in CIT for a specified period.
Below is an overview of the rates commonly applied:
Preferential CIT rates for new investments
Vietnam’s latest CIT framework introduces preferential rates of 10, 15, or 17 percent for different time periods, depending on the sector and location of new investment projects.
These incentives are designed to channel capital into high-tech industries, infrastructure, renewable energy, and other priority sectors critical to national socio-economic development. Firms may request an extension of these preferential CIT rates for up to 15 years if they satisfy the conditions outlined in this law.
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Vietnam's Preferential CIT Regime |
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CIT Rate |
Duration |
Eligible Sectors / Projects |
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10% |
15 years |
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10% |
Full duration |
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15% |
Full duration |
Enterprises outside incentive areas earning income from agriculture, forestry, livestock, aquaculture, and related processing |
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17% |
10 years |
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17% |
Full duration |
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CIT incentive-eligible areas
CIT incentive areas include:
- Regions with difficult or especially difficult socio-economic conditions; and
- Designated economic zones, high-tech zones, agricultural high-tech zones, and centralized IT.
It is notable that industrial parks (IPs) are no longer considered eligible locations for CIT incentives under the new law. As a result, new investment projects or expansions of existing projects with investment licenses issued after October 1, 2025, in IPs are no longer eligible for the two-year CIT exemption and four-year 50 percent CIT reduction that were available under the former regulation.
Tax exemptions and reductions
The 2025 CIT framework combines full tax holidays with subsequent reductions, applied according to the project sector and location. These include:
- Four-year exemption and nine-year 50 percent reduction: Applies to new investment projects that qualify for the preferential 10 percent CIT rate for a 15-year period; or investment projects in socialized sectors located in areas with difficult or especially difficult socio-economic conditions.
- Four-year exemption and five-year 50 percent reduction: Granted to enterprises in socialized sectors like education, healthcare, culture, sports, and environmental services, when located outside areas classified as having difficult or especially difficult socio-economic conditions.
- Two-year exemption and four-year 50 percent reduction: Applies to new investment projects that qualify for the preferential 17 percent CIT rate for a 10-year period.
Projects eligible for special investment support under the Investment Law may extend their CIT exemption period, with the maximum duration not exceeding 1.5 times the standard exemption.
The exemption and reduction periods are calculated from the first year in which taxable income is generated. If no taxable income arises within the first three years from the commencement of revenue-generating activities, the incentive period will instead begin in the fourth year. Where a certificate of eligibility is issued after income generation has already commenced, the incentive period will be counted from the year of certification.
Customs and Land Rental Incentives (non-tax based)
Customs duty exemptions
Vietnam’s 2016 Export and Import Duty Law, amended by Law No. 90/2025/QH15, promulgates that businesses can also enjoy exemptions from import duty if they meet one of the following criteria:
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Category |
Scope of Exemption |
Key Conditions / Notes |
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Diplomatic and Personal Allowances |
Diplomatic goods; duty-free luggage; duty-free shop imports |
Within prescribed quotas under international treaties |
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Gifts and Personal Assets |
Relocation assets; gifts and donations |
Tax applies to excess value unless for state-funded entities or humanitarian purposes |
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Border Trade |
Goods traded by border residents |
Must be within quota and for personal production/consumption |
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Treaty-Based Exemptions |
Goods exempt under international agreements |
Subject to treaty provisions |
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Low-Value Goods |
Goods below minimum value or tax threshold |
Threshold defined by regulations |
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Processing for Export |
Imported inputs for processing; processed exports |
No exemption for domestic input portion subject to export tax |
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Export Manufacturing |
Imported inputs for export production |
Standard export production exemption |
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Non-Tariff Zone Goods |
Goods from non-tariff zones into domestic market |
Only if no imported foreign inputs used |
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Temporary Import/Export |
Goods for exhibitions, repair, leasing, etc. |
Must re-export/re-import within specified timelines |
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Non-Commercial Goods |
Samples, advertising materials |
Limited quantity |
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Investment Incentives |
Fixed assets imports for incentivized projects |
Applies to new and expansion projects |
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Agriculture Inputs (not yet domestically produced) |
Seeds, fertilizers, pesticides not domestically available |
Must be approved for import |
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Priority Investment Sectors |
Inputs for high-tech, RandD, or disadvantaged areas |
Up to 5-year exemption; exclusions apply (e.g. minerals, excise goods) |
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Medical Equipment Production (not yet domestically produced) |
Inputs for prioritized medical device manufacturing |
Up to 5-year exemption |
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Oil and Gas Activities |
Equipment, materials for petroleum operations |
Includes temporary imports |
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Shipbuilding |
Inputs and fixed assets for shipbuilding projects |
Includes exported vessels |
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Currency Production |
Inputs for printing and minting money |
Full exemption |
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Environmental Protection |
Equipment for waste treatment, renewable energy |
Includes recycled export products |
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Education Sector (not yet domestically produced) |
Specialized imported educational equipment |
Must not be locally available |
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Science and Technology / Digital Industry (not yet domestically produced) |
Equipment, inputs for RandD, innovation, digital economy |
Includes 5-year input exemptions |
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National Defense and Security |
Specialized goods for defense/security |
Domestic unavailability required |
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Social Welfare and Emergencies |
Goods for disaster relief, public health, emergencies |
Case-by-case approval |
Land rental incentives
Subject to specific conditions, some investment projects can also enjoy land rental fee exemption:
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Land Rental Incentives in Vietnam |
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Applicable Investment Types |
Exemption |
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Projects on the list of special investment encouragement sectors investing in areas of particularly difficult socio-economic conditions |
Exemption for the whole operational period |
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15 years of exemption |
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11 years of exemption |
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Projects investing in areas of difficult socio-economic conditions |
7 years of exemption |
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3 years of exemption |
FAQ: Capitalizing on New Support Measures for Your Business and Easing of Foreign Work
What new incentive measures supporting manufacturing and processing sectors affected by the pandemic?
The government has put forward several measures to help businesses affected by the pandemic. The first one is Decree 57 (Decree 57/2021/ND-CP) for businesses involved in the supporting industry and issued in June 2021. The main highlight of Decree 57 is to increase incentives for eligible manufacturers and overall increase processing and manufacturing industries in the local economy. Decree 57 is retroactive and covers investment prior to 2015. These incentives incorporate a CIT rate of 10 percent for 15 years, plus a tax holiday for 4 years, followed by a reduced CIT rate by 50 percent for the next 9 years. The decree also gives financial support for businesses that have been hit hard by the pandemic. The incentives apply to textile and garment, footwear, electronics, automobiles, machinery engineering, and hi-tech industries under certain conditions.
These conditions are as follows:
- Businesses must manufacture products on the list of prioritized industrial supporting products as per Decree 111/2015/ND-CP; AND
- The products are not on the same list published in Circular 55/2015/BTC (Circular 55); OR
- Manufactured products are on the list of prioritized industrial supporting products in Circular 55, manufactured domestically before 2015 but are also granted a certificate of conformity equal to EU technical regulations or something equivalent.
What is the procedure to obtain these incentives?
Businesses must prepare a dossier which includes a written request using Form 01 found in Circular 55, along with the enterprise registration certificate, the description of the project, an audited financial statement (for existing projects), the decision on approval for environmental impact (for new projects) or commitment to environmental projection (existing projects). The process should take 35 days at a minimum but may last longer. The dossier can be submitted directly at the department of heavy industry under the Ministry of Industry and Trade (MoIT) or online on the MoIT portal.
