MPI has consulted with the Ministry of Justice (MOJ) on a resolution on pilot policies to support investment in hi-tech fields. MPI has submitted to the government a draft National Assembly resolution on investment encouragement policies with simplified procedures.

MPI said that changes in supplementing investment incentives forms and encouraging new investments in hi-tech fields amid the global minimum tax is a must to ensure the competitiveness and attractiveness of Vietnam as an investment environment.

The ministry has proposed an investment encouragement policy on a trial basis for four groups of businesses.

First, enterprises running projects with investment capital of over VND12 trillion, or enterprises with turnover of VND20 trillion a year in hi-tech manufacturing fields.

Second, hi-tech firms that have investment projects capitalized at over VND12 trillion or annual turnover of over VND20 trillion.

Third, projects utilizing high technology with investment capital of over VND12 trillion or annual turnover of over VND20 trillion.

Fourth, projects on research and development centers capitalized at over VND3 trillion.

The draft resolution mentions four forms of investment incentives, including: supporting training and development of human resources; giving financial support to create fixed assets and social infrastructure; giving financial support for manufacturing hi-tech products; and supporting research and development.

Regarding investment support methods, the compilation agency suggested that investment support should be deducted from enterprises’ corporate income tax obligations, or come directly from the state budget.

The funds to implement the investment support policy will be included in the annual state budget.

MPI said that the measures follow OECD’s (the Organisation for Economic Co-operation and Development) recommendations on creating policies amid the global minimum tax application.

These are investment support measures being applied by other regional countries. In Vietnam, this support still has not been legalized.

The resolution would be valid for five years, starting January 1, 2024. During the time of implementation, in case the Investment Law, the State Budget Law and other related laws are amended, the new regulations will be implemented.

Vietnam wants to apply the global minimum tax from 2024 and to facilitate enterprises to pay additional tax in Vietnam.

Nguyen Le