Understanding Decree 10/2024/ND-CP: Enhancing High-Tech Investment in Vietnam

Effective from March 25, 2024, Decree 10/2024/ND-CP represents a significant leap forward in Vietnam’s commitment to attracting investments in high-tech parks. This recent legislative change aims to streamline processes and provide robust support for investors engaging in high-tech business activities throughout the country.

Introduction of Decree 10/2024

On February 1, 2024, the Vietnamese government rolled out Decree No. 10/2024/ND-CP detailing regulations governing high-tech zones. The decree addresses key areas including:

• Establishment and expansion procedures for high-tech zones.
• Investment incentives and support policies for projects within these areas.
• Regulations on operational activities taking place in high-tech parks.

Key Benefits for Investors

Under the new decree, investors embarking on infrastructure projects within high-tech parks stand to gain numerous advantages:

• Exemptions from land lease fees, making it financially more attractive to invest in these areas.
• Reimbursement for land clearance expenses, providing additional financial support.
• Access to preferential interest rates on loans and legal frameworks for capital mobilization, encouraging investment.

Furthermore, local authorities are mandated to enhance living conditions and social infrastructure in the vicinity of high-tech parks. This effort is crucial in attracting and retaining a skilled workforce.

Investors involved in manufacturing and export activities within these parks will also enjoy export tax exemptions or reductions, leveraging similar benefits provided in non-tariff zones.

Eligibility Criteria for High-Tech Parks

Establishing a high-tech park requires adherence to specific conditions:

• The project must align with approved regional and provincial planning.
• It should be located in an area with suitable infrastructure and transportation facilities.
• The park needs to stand in proximity to high-quality research and training institutions.
• There must be a comprehensive plan for resource mobilization geared towards developing technical and social infrastructure as well as human resources.
• Construction of residential areas and public amenities is essential to support the workforce.
• Compliance with existing environmental protection laws is crucial.
• Adequate defense and security measures must be established.

For expansions, the following criteria must be met:

• The new area must meet conditions outlined in Article 31 or Article 32 of the Law on High Technology, depending on the type of high-tech park.
• The existing park must achieve an occupancy rate of at least 60%.

Investment Opportunities in Ho Chi Minh City

Ho Chi Minh City, recognized as Vietnam’s economic powerhouse, is actively seeking investments totaling US$492 million across various high-tech projects. Notably, this initiative includes funding dedicated to significant semiconductor and electronics ventures, alongside a vast data center project.

The Saigon Hi-tech Park, one of the leading high-tech parks in Vietnam, plans to allocate around 10 hectares for these new projects, demonstrating the city’s commitment to facilitating innovation and technological development.

Vietnam’s Growing High-Tech Landscape

Vietnam is rapidly positioning itself as a compelling destination for high-tech investments. With an evolving focus on technological advancements, the nation is poised to meet the demands of its burgeoning young workforce while aligning with national development aspirations.

The government is unveiling a series of incentivizing measures to bolster investments in high-tech parks. Industries classified under the high-tech umbrella can qualify for:

• Corporate tax reductions,
• Credit incentives, and
• Exemptions or reductions in land and water surface lease fees.

A prominent policy, Decree 13/2019, further encourages high-tech firms to relocate to Vietnam. This decree provides access to the Scientific/Technology Enterprise Certification, unlocking additional governmental incentives aimed at fostering a conducive business environment.

Investors seeking to explore the nuances of doing business in Vietnam can refer to various resources that detail the comprehensive incentives available for both local and foreign enterprises.

Incentives for Doing Business in Vietnam

Tax Incentives for Foreign Enterprises in Vietnam

About Vietnam Briefing

Vietnam Briefing is a trusted source for regional business insights across Asia. Supported by Dezan Shira & Associates, the publication facilitates a deeper understanding of Vietnam’s investment landscape. For more information on establishing a business in Vietnam, readers are encouraged to visit the publication’s website or reach out directly for tailored support.