Geographical regions of investment incentives in Vietnam

Geographical regions of investment incentives in Vietnam

Strategically siting a project in regions of investment incentives presents investors with special preferential policies on taxes, land rental, project duration, etc.

Incentives available in locations of investment incentives

Preferential Corporate Income Tax rates for a limited time or during the whole operational period; exemption and reduction in Corporate Income Tax.

Exemption from import duty granted for goods imported to form fixed assets; materials, supplies, and components needed for investment projects.

Exemptions and reductions in land rental, land use fees and taxes.

Operational period of a maximum of 70 years, applicable to investment projects in areas with difficult and/or specially difficult socio-economic conditions (50 years for other projects).  

Reductions of 25% to 50% in security deposit to ensure the implementation of investment projects.

Details of tax exemptions and reductions are mentioned in Tax Preference upon when Investing in Vietnam.
Article 15, Clause 4 Article 42, and Article 43 of the 2014 Investment Law.

Areas qualified for regional investment incentives

Regions with difficult socio-economic conditions and regions with special difficult socio-economic conditions.

Industrial parks, export processing zones, hi-tech parks, and economic zones.

Investment projects in rural areas hiring from 500 employees and more (not including part-time employees and those with labor contracts under 12 months) are still entitled to preferential policies, similar to those situated in areas with difficult socio-economic conditions.

Clause 2 Article 15 and Clause 2 Article 16 of the 2014 Investment Law, guided by Article 16 of Decree No. 118/2015/ND-CP

Exceptions:

Investment projects such as exploration and mining of minerals, production and business of products and services subject to special sales tax (excise tax), although located in areas of investment incentives, are not eligible for regional investment incentives.

Automobile production projects, however, are still qualified for regional investment incentives if they are sited in locations of investment incentives despite being subject to special sales tax.

Clause 4 Article 15 of the 2014 Investment Law

List of regions of investment incentives

Investors can consider investing in the following areas to receive incentives:

No.ProvinceRegions with special difficult socio-economic conditionsRegions with difficult socio-economic conditions
1Bac KanAll districts, towns, and Bac Kan City 
2Cao BangAll districts and Cao Bang City 
3Ha GiangAll districts and Ha Giang City 
4Lai ChauAll districts and Lai Chau City 
5Son LaAll districts and Son La City 
6Dien BienAll districts, towns, and Dien Bien City 
7Lao CaiAll districtsLao Cai City
8Tuyen QuangNa Hang, Chiem Hoa and Lam Binh districtsHam Yen, Son Duong and Yen Son districts, and Tuyen Quang City
9Bac GiangSon Dong districtLuc Ngan, Luc Nam, Yen The and Hiep Hoa districts
10Hoa BinhDa Bac and Mai Chau districtsKim Boi, Ky Son, Luong Son, Lac Thuy, Tan Lac, Cao Phong, Lac Son and Yen Thuy districts
11Lang SonBinh Gia, Dinh Lap, Cao Loc, Loc Binh, Trang Dinh, Van Lang, Van Quan and Bac Son districtsChi Lang and Huu Lung districts
12Phu ThoThanh Son, Tan Son and Yen Lap districtsDoan Hung, Ha Hoa, Phu Ninh, Thanh Ba, Tam Nong, Thanh Thuy and Cam Khe districts
13Thai NguyenVo Nhai, Dinh Hoa, Dai Tu, Phu Luong and Dong Hy districtsPho Yen and Phu Binh districts
14Yen BaiLuc Yen, Mu Cang Chai and Tram Tau districtsTran Yen, Van Chan, Van Yen and Yen Binh districts, and Nghia Lo town
15Quang NinhBa Che and Binh Lieu districts, Co To island district, and other provincial islands and isles.Van Don, Tien Yen, Hai Ha and Dam Ha districts
16Hai PhongIsland districts of Bach Long Vy and Cat Hai 
17Ha Nam Ly Nhan, Thanh Liem and Binh Luc districts
18Nam Dinh Giao Thuy, Xuan Truong, Hai Hau and Nghia Hung districts
19Thai Binh Thai Thuy and Tien Hai districts
20Ninh Binh Nho Quan, Gia Vien, Kim Son, Tam Diep and Yen Mo districts
21Thanh HoaMuong Lat, Quan Hoa, Quan Son, Ba Thuoc, Lang Chanh, Thuong Xuan, Cam Thuy, Ngoc Lac, Nhu Thanh and Nhu Xuan districtsThach Thanh and Nong Cong districts
22Nghe AnKy Son, Tuong Duong, Con Cuong, Que Phong, Quy Hop, Quy Chau and Anh Son districtsTan Ky, Nghia Dan and Thanh Chuong districts, and Thai Hoa town
23Ha TinhHuong Khe, Huong Son, Vu Quang, Loc Ha and Ky Anh districtsDuc Thọ, Nghi Xuan, Thach Ha, Cam Xuyen and Can Loc districts
24Quang BinhTuyen Hoa, Minh Hoa and Bo Trach districtsThe remaining districts and Ba Don town
25Quang TriHuong Hoa and Da Krong districts, Con Co island district, and provincial islands.The remaining districts
26Thua Thien HueA Luoi and Nam Dong districtsPhong Dien, Quang Dien, Phu Loc and Phu Vang districts, and Huong Tra town
27Da NangHoang Sa island district 
28Quang NamDong Giang, Tay Giang, Nam Giang, Phuoc Son, Bac Tra My, Nam Tra My, Hiep Duc, Tien Phuoc, Nui Thanh, Nong Son and Thang Binh districts, and Cu Lao Cham islandDai Loc, Que Son, Phu Ninh and Duy Xuyen districts
29Quang NgaiBa To, Tra Dong, Son Tay, Son Ha, Minh Long, Binh Son, Tay Tra and Son Tinh districts, Ly Son island districtNghia Hanh district
30Binh DinhAn Lao, Vinh Thanh, Van Canh, Phu Cat, Tay Son, Hoai An and Phu My districtsTuy Phuoc district
31Phu YenSong Hinh, Dong Xuan, Son Hoa, Phu Hoa and Tay Hoa districtsSong Cau town;  Dong Hoa and Tuy An districts
32Khanh HoaKhanh Vinh and Khanh Son districts, Truong Sa island district, and provincial islands.Van Ninh, Dien Khanh and Cam Lam districts, Ninh Hoa town, and Cam Ranh City
33Ninh ThuanAll districtsPhan Rang – Thap Cham City
34Binh ThuanPhu Quy districtBac Binh, Tuy Phong, Duc Linh, Tanh Linh, Ham Thuan Bac, Ham Thuan Nam and Ham Tan districts
35Dak LakAll districts and Buon Ho townBuon Ma Thuot City
36Gia LaiAll districts and townsPleiku City
37Kon TumAll districts and cities 
38Dak NongAll districts and towns 
39Lam DongAll districtsBao Loc City
40Ba Ria – Vung TauCon Dao districtTan Thanh, Chau Duc and Xuyen Moc districts
41Tay NinhTan Bien, Tan Chau, Chau Thanh and Ben Cau districts The remaining districts
42Binh PhuocLoc Ninh, Bu Dang, Bu Dop, Bu Gia Map and Phu Rieng districtsDong Phu, Chon Thanh and Hon Quan districts, Binh Long and Phuoc Long towns
43Long AnDuc Hue, Moc Hoa, Vinh Hung and Tan Hung districtsKien Tuong town; Tan Thanh, Duc Hoa and Thanh Hoa districts
44Tien GiangTan Phuoc and Tan Phu Dong districtsGo Cong Dong and Go Cong Tay districts
45Ben TreThanh Phu, Ba Tri and Binh Dai districtsThe remaining districts
46Tra VinhChau Thanh and Tra Cu districtsCau Ngang, Cau Ke and Tieu Can districts, and Tra Vinh City
47Dong ThapHong Ngu, Tan Hong, Tam Nong and Thap Muoi districts, and Hong Ngu townThe remaining districts
48Vinh Long Tra On, Binh Tan, Vung Liem, Mang Thit and Tam Binh towns
49Soc TrangAll districts, Vinh Chau and Nga Nam townsSoc Trang City
50Hau GiangAll districts and Nga Bay townVi Thanh City
51An GiangAn Phu, Tri Ton, Thoai Son and Tinh Bien districts, and Tan Chau townChau Doc City and the remaining districts
52Bac LieuAll districts and townsBac Lieu City
53Ca MauAll districts, provincial islands and islesCa Mau City
54Kien GiangAll districts, provincial islands and isles, and Ha Tien townRach Gia City
55 Economic and high-tech zones (including focused technology information zones established under the decision of the Prime Minister)Industrial and export processing zones established under the decision of the Prime Minister

There are more investment incentives applied to regions with special difficult socio-economic conditions than those with difficult socio-economic conditions.

Decree No. 118/2015/ND-CP dated November 12th 2015 by the Government
Map of Industrial Zones