Incentive and support policies for hi-tech activities and activities related to the development of strategic technology from July 01st, 2026
August 04th, 2026
From July 01st, 2026, the Law on High technology No. 133/2025/QH15 officially comes into effect, regulating hi-tech activities, policies and measures for encouraging and promoting hi-tech activities and activities related to the development of strategic technology in Vietnam. Below are the new regulations and incentive and support policies that enterprises participating in or associated with hi-tech and strategic technology activities in Vietnam shall update to maximize the competitive advantages in the business operations.
1. Hi-tech enterprises
1.1. What are the hi-tech enterprises?
- Hi-tech enterprises refer to enterprises that (i) produce hi-tech products, (ii) provide hi-tech services or (iii) conduct research and development of hi-tech, hi-tech products.
- To be recognized as hi-tech enterprises, enterprises must complete the registration procedure for hi-tech enterprises and obtain the Written confirmation of hi-tech enterprise from the competent authority. This Written confirmation serves as the legal basis for the hi-tech enterprises to benefit from incentive and support policies in accordance with regulations.
1.2. Classification of hi-tech enterprises: Hi-tech enterprises are classified into 02 groups, including:
- Group-1 hi-tech enterprises: are hi-tech enterprises that satisfy one of the following criteria:
(i) Conduct research and development of high technology and hi-tech products;
(ii) Produce hi-tech products with a minimum localization ratio prescribed by the Government by sector and field; and ensure total annual research and development expenditure in Vietnam is at least 1% of net revenue after deducting input value.
- Group-2 hi-tech enterprises: are the remaining hi-tech enterprises.
1.3. Incentive and support policies for hi-tech enterprises
Group-1 hi-tech enterprises shall be entitled to the most advantageous incentive and support policies in accordance with the regulations on investment, tax, land and other policies specified in relevant regulations; Group-2 hi-tech enterprises shall be entitled to incentive and support policies in accordance with the regulations on investment, tax, land and other policies specified in relevant regulations, specifically as follow:
1.3.1. Incentive and support on import duty:
Raw materials, supplies and components imported to serve production and research activities of hi-tech enterprises that are exempt from import duty within 05 years from the date of commencement of such production and research activities.
1.3.2. Incentive and support on corporate income tax:
(i) Incentive tax rates:
· Income of group-1 hi-tech enterprises shall apply an incentive tax rate of 10% for 25 years.
· Income of group-2 hi-tech enterprises shall apply an incentive tax rate of 10% for 15 years.
The incentive tax rates applicable to the income generated from the execution of a new investment project by a hi-tech enterprise shall begin from the first year generates revenue.
(ii) Tax exemption and tax reduction: Income of hi-tech enterprises (group 1 and group 2) shall be eligible for tax exemption for up to 04 years and 50% tax reduction for up to 09 more years.
The tax exemption or reduction period shall begin from the first year in which taxable income is generated from the investment project. In cases where the project does not generate any taxable income during the 03 years starting from the first year in which the project generates revenue, it shall begin from the 04th year.
1.3.3. Incentive and support on land:
Hi-tech enterprises in the private sectors are provided with the support for reducing at least 30% of land rent for subleased land for the first 05 years from the date of signing the land lease contracts with the investors in the infrastructure of the industrial parks, industrial clusters or technology incubators. The Provincial People’s Committees shall issue decisions to reduce land rent for subleased land in accordance with regulations.
1.3.4. Incentive and support on bidding:
- Entities entitled to incentives in contractor selection in accordance with the regulations on bidding including: (i) Contractors that are hi-tech enterprises and (ii) Hi-tech products under the List of encouraged hi-tech products that are produced by hi-tech enterprises.
- Investors that are hi-tech enterprises shall be entitled to incentives in investor selection in accordance with the regulations on bidding.
- Hi-tech enterprises are not required to demonstrate their equity arrangement capacity when bid evaluation of the investor in accordance with the regulations on bidding.
1.3.5. Incentive and support on customs:
Enterprise that has been announced by the competent authority to be hi-tech enterprise shall be eligible for priorities in accordance with the regulations on customs upon fulfillment of the requirements: (i) It follows e-customs procedures and e-taxation procedures; has its software or information technology system used for managing import/export activities connected or shared with customs authorities; (ii) Payments are made via banks; (iii) Its internal control system is active; (iv) It has strictly complied with regulations of law on accounting and audit.
2. Strategic technology enterprises
The Law on High technology has supplemented the policy framework for activities related to the development of strategic technology to enhance national competitiveness, technological autonomy and sustainable development.
2.1. What are the strategic technology enterprises?
- Strategic technology enterprises refer to enterprises that (i) produce strategic technology products, (ii) provide strategic technology services or (iii) conduct research and development of strategic technology and strategic technology products. In which:
· Strategic technology means breakthrough and diffusive technology determined by the State for focused investment and development to enhance technological autonomy capacity, create national competitive advantages, ensure national defense and security and promote sustainable socio-economic development.
· Strategic technology products refer to products or services created from strategic technology, capable of generating breakthroughs and dominating value chains or markets, or having special importance for national defense, security and technological autonomy of the country.
- To be recognized as strategic technology enterprises, enterprises must complete the registration procedure for strategic technology enterprises and obtain the Written confirmation of strategic technology enterprise from the competent authority. This Written confirmation serves as the legal basis for the strategic technology enterprises to benefit from incentive and support policies in accordance with regulations.
2.2. Incentive and support policies for strategic technology enterprises
Strategic technology enterprises shall be entitled to the most advantageous incentive and support policies in accordance with the regulations on investment, tax, land and other policies specified in relevant regulations, specifically as follow:
2.2.1. Incentive and support on import duty:
Raw materials, supplies and components imported to serve production and research activities of strategic technology enterprises that are exempt from import duty within 05 years from the date of commencement of such production and research activities.
2.2.2. Incentive and support on corporate income tax:
(i) Incentive tax rates: Income of strategic technology enterprises shall apply an incentive tax rate of 10% for 25 years.
The incentive tax rates applicable to the income generated from the execution of a new investment project by a strategic technology enterprise shall begin from the first year generates revenue.
(ii) Tax exemption and tax reduction: Income of strategic technology enterprises shall be eligible for tax exemption for up to 04 years and 50% tax reduction for up to 09 more years.
The tax exemption or reduction period shall begin from the first year in which taxable income is generated from the investment project. In cases where the project does not generate any taxable income during the 03 years starting from the first year in which the project generates revenue, it shall begin from the 04th year.
2.2.3. Incentive and support on bidding:
- Entities entitled to incentives in contractor selection in accordance with the regulations on bidding including: (i) Contractors that are strategic technology enterprises and (ii) Strategic technology products under the List of strategic technology product that are produced by strategic technology enterprises.
- Investors that are strategic technology enterprises shall be entitled to incentives in investor selection in accordance with the regulations on bidding.
- Strategic technology enterprises are not required to demonstrate their equity arrangement capacity when bid evaluation of the investor in accordance with the regulations on bidding.
2.2.4. Incentive and support on customs:
Enterprise that has been announced by the competent authority to be strategic technology enterprise shall be eligible for priorities under customs laws, provided they meet conditions similar to those specified in Section 1.3.5.
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Hi-tech enterprises and strategic technology enterprises shall proactively assess the eligibility for applicable incentive and support, while also maintaining complete documents to substantiate the eligibility for incentives when the competent authorities conduct the inspection and examination in accordance with regulations.
In order to receive legal support and advice on the applicability of incentives and the preparation of necessary documents, enterprises can contact us with the following information:
LEGAL ASSOCIATES LAW FIRM
Address: Room D14, Floor 2, 40 Ba Huyen Thanh Quan, Xuan Hoa Ward, Ho Chi Minh City
Phone number: 028 3930 6949
Email: thaianh.luong@la-vn.com
Address: Room D14, Floor 2, 40 Ba Huyen Thanh Quan, Xuan Hoa Ward, Ho Chi Minh City
Phone number: 028 3930 6949
Email: thaianh.luong@la-vn.com