The Vietnamese government encourages foreign investors to invest in the food value chain, applying many preferential policies such as corporate income tax exemption, import tax exemption, tax exemption or free use. land, water surface, VAT exemption, equipment and machinery subsidies, preferential interest rates for bank loans...
1 - ENCOURAGED INVESTMENT FIELDS
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Very difficult socio-economic areas (especially difficult areas)
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Economic zones
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High-tech zones
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Industrial zones
2 - WAIVED OR DISCOUNTED LAND OR WATER SURFACE RENT
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Encouraged or incentivized investment projects: at least 5 years of favorable price.
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Specially incentivized investment projects: free rent.
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Incentivized investment projects: 15 years free rent, next 7 years 50% off.
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Encouraged investment projects: free rent for 11 years, 50% reduction for the next 5 years.
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Housing for workers or for non-agricultural purposes: free land rental.
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Newly established small and medium enterprises: free rent for 5 years, 50% reduction for the next 10 years.
3 - WAIVED OR REDUCED CORPORATE INCOME TAX
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Enterprises with new investment projects in particularly difficult areas, economic zones, or high-tech zones.
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High tech enterprises and high tech agricultural enterprises their corporate income tax waived for the first 4 years, and reduced by 50% for the next 5 years.
4 - WAIVING IMPORT TAX
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Import tax exemption for goods that are fixed assets subject to investment incentives.
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Tax exemption for the next 5 years for goods being raw materials, supplies and components.
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Raw materials, supplies and components that cannot be produced domestically, imported by high-tech enterprises, science and technology enterprises, or science and technology organizations in the fields and lists of trade and investment eligible for special incentives, or serving production activities in areas with special difficulties specified in the Law on Investment, will be exempt from import tax for 5 years from the date of production start.
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Exemption from tax on plant varieties, animal breeds, fertilizers and pesticides.
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Plant varieties, animal breeds, fertilizers and plant protection drugs that cannot be domestically produced or imported to directly serve agricultural, forestry and fishery production are exempt from import tax.
5 - INVESTMENT SUPPORT
SUPPORT FOR INVESTMENT IN MACHINERY PRODUCTS FOR AGRICULTURE AND RURAL DEVELOPMENT, AGRICULTURE MACHINERY, COMPONENTS, ACCESSORIES
Support 60% of the total investment cost, and the maximum is 10 billion VND/project.
Attention: There are many laws, regulations, rules about investing, and are subject to change, so pay attention
Source:
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Decree 134/2016/ND-CP detailing a number of articles and measures to implement the Law on Import and Export Tax.
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Decree 57/2018/ND-CP On mechanisms and policies to encourage enterprises to invest in agriculture and rural areas.
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Decision No. 176/QD-BCT dated January 28, 2019 of the Ministry of Industry and Trade promulgating the List of manufactured mechanical products, components, agricultural machines and auxiliary products for agricultural and rural development approved for investment support.
