On March 30th, 2020, the Government promulgated Decree No. 37/2020/NĐ-CP to amend the list of business lines eligible for investment incentives attached to Decree No. 118/2015/ND-CP detailing and guiding the implementation of Law on Investment (“Decree 118”), which takes effect on May 15th, 2020, in which adding the following 04 business lines to the list of business lines eligible for investment incentives:
- Business investment in the distribution chain of products of small and medium-sized enterprises (“SMEs”);
- Investment in business of incubating SMEs;
- Business investment in technical facilities to support SMEs;
- Business investment in a common working area for small and medium-sized startups.
Accordingly, foreign investors taking business investment in Vietnam in 04 business lines as mentioned above will be eligible for investment incentives from May 15th, 2020, namely:
- Under the Law on Support for Small and Medium Enterprises, support measures for SMEs in general may include of assistance in the credit assessment; assistance in the tax and accounting regimes; assistance in production areas; assistance in terms of technologies; assistance in access to information, counseling and legal fields; and assistance in human resource development.
- Regarding incubators, technical facilities, coworking areas, and business investment enterprises and organizations joining the distribution chain of products manufactured in Vietnam having at least 80% of members that are SMEs are entitled to more investment incentives, in which:
- Remission of land rental, land use fees and the non – agricultural land use tax in accordance with regulations of law;
- Remission of corporate income tax for a limited period of time in accordance with regulations of law on corporate income tax; and
- Micro-enterprises and small enterprises will be given priority during contractor selection in accordance with regulations of law on bidding.
If you have any questions or require any additional information, please contact Apolat Legal – An International Law Firm in Viet Nam.
This article is for general information only and is not a substitute for legal advice.