Vietnam, a rapidly emerging pearl in Southeast Asia, boasts friendly investment policies, an open business environment, and vibrant economic vitality, which holds boundless business opportunities and potential. Enterprises investing in Vietnam can enjoy numerous preferential policies.
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Tax-related Policies: The normal corporate income tax rate in Vietnam is20%. However, eligible investment projects can enjoy preferential tax rates. For instance, when investing in specific areas such as economic zones, high-tech zones, industrial parks, and export processing zones, enterprises may receive preferential treatments like "four-year tax exemption and nine-year half-tax collection" (exempt from income tax for 4 years starting from the year of making a profit, and then pay half of the normal tax rate for the following 9 years) or "two-year tax exemption and four-year half-tax collection". Take the Shenzhen-Haiphong Economic and Trade Cooperation Zone jointly developed by China and Vietnam as an example. All enterprises settled in this zone can enjoy the "two-year tax exemption and four- year half-tax collection" policy, that is, they are tax-free for 2 years starting from the year of making a profit, and the tax rate for the subsequent 4 years is 50% of the payable tax amount. In addition, some key industries encouraged for investment can also apply preferential tax rates of 10%, 15%, or 17% and enjoy corporate income tax reduction or exemption for up to 15 years. Moreover, for machinery, equipment, raw materials, components, and other goods imported for investment projects, value-added tax at the import stage can be exempted, and customs duty reduction or exemption can be provided. For example, some high-tech enterprises, scientific and technological enterprises, and related organizations can be exempt from import duties on raw materials, supplies, and components that cannot be produced domestically within the first 5 years of production. Also, export enterprises are subject to a zero-value-added-tax rate policy, and some specific industries and products may also enjoy value-added tax reduction or exemption, so as to enhance the competitiveness of enterprises in the international market.
Land-related Policies: Although foreign investors cannot purchase land in Vietnam, they can lease land to obtain land use rights, usually for a period of 50 years. If the investment project has a slow capital recovery or is invested in areas with difficult or especially difficult socio - economic conditions, the land use period can be extended to 70 years upon approval of the application. For projects invested in areas with difficult or especially difficult socio-economic conditions and with a long-term investment, the land use period can exceed 50 years and reach 70 years, and can be extended for a longer period upon approval by the competent authority. Enterprises investing in preferential areas and industrial projects can enjoy exemptions or reductions of land rent, land use fees, and land use tax. For example, infrastructure construction projects in industrial parks can be exempt from land rent for 15 years, and the land area for public facilities is completely exempt from land rent. In addition, local governments in Vietnam also have relevant policies regarding land rent reduction, lease term extension, and land transfer preferential offers. If a Vietnamese company jointly establishes a company with foreign investment, the Vietnamese company can contribute the land use rights as capital, provided that it has obtained the land in accordance with the land allocation system or lease system and fully paid the rent. After the contribution of land use rights, the joint-venture company can transfer, lease, donate, mortgage the land use rights, or use them as capital to invest in other companies, which is the same as obtaining land use rights directly from the government.
SUMEC International Technology Co., Ltd. (hereinafter referred to as "SUMEC-ITC") has always adhered to the guidance of serving national strategies, deeply engaged in the two core fields of mechanical and electrical equipment and bulk commodities. By giving full play to its resource and service advantages, it provides one-stop global supply chain integration service solutions for domestic and foreign customers. It has successfully assisted many industrial customers in completing product exports or overseas investments, and its business footprint covers countries and regions such as Vietnam, Thailand, Malaysia, Indonesia, Uzbekistan, Ethiopia, and Finland.
On January 21st, SUMEC-ITC followed the organizer of the 137th China Import and Export Fair (Canton Fair) to Vietnam to participate in the promotion activities of this Canton Fair and shared its manyyear exhibition experience and the company's professional trade service capabilities. This event attracted the attention of local trade promotion departments, business organizations, enterprise representatives, and mainstream media. Through the international platform of the Canton Fair, SUMEC-ITC will embrace the world with a more open mindset, continuously deepen exchanges and cooperation with enterprises from various countries, constantly optimize the service model, improve service quality, and work hand in hand with Chinese enterprises to embrace broader market opportunities and achieve mutual benefit and win - win results.
In order to assist more enterprises in understanding the advantages of the Vietnamese market, the 1st Eurasian Industrial Cooperation Forum & Vietnam Manufacturing Sustainable Development Cooperative Economic Forum will be held in Vietnam in June 2025. It will jointly explore the future development direction of Vietnam's industrial manufacturing and cooperation opportunities under the trend of globalization with all sectors. To enable everyone to have an in-depth understanding of this promising market, SUMEC-ITC welcomes you to participate!
