Vietnam Issues Decree 10/2024/ND-CP to Attract More High-Tech Investments

March 14, 2024 Posted by Vietnam Briefing Written by Giulia Interesse and Melissa Cyrill Reading Time: 3 minutes

Effective from March 25, 2024, Decree 10/2024/ND-CP aims to streamline processes and increase support for investors of high-tech parks and high-tech business activities in Vietnam.

On February 1, 2024, the Government introduced Decree No. 10/2024/ND-CP, which outlines regulations concerning high-tech zones.

This decree covers the establishment and expansion procedures of high-tech zones, investment incentives and support policies for projects within these zones, and operational activities within them.

Key benefits under Decree 10/2024

Under Decree 10/2024, which is effective from March 25, 2024, investors venturing into infrastructure projects within high-tech parks will enjoy a range of benefits, including exemptions from land lease fees and reimbursement for land clearance expenses.

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Additionally, preferential interest rates on loans and access to capital within established legal frameworks will be made available to support these endeavors.

Decree 10/2024 also demands local authorities to develop suitable living areas and social infrastructure surrounding high-tech parks to accommodate workers. These facilities can be constructed through public-private partnerships (PPP) or private funding, enhancing the overall appeal of these areas for prospective investors.

Manufacturing and export businesses operating within these parks will also benefit from export tax exemptions or reductions, akin to those enjoyed in non-tariff zones.

Eligibility criteria for setting up and expanding high-tech parks

A high-tech park shall be established under specific conditions:

Complying with approved regional and provincial planning schemes.
Having a suitable scope of land use and located in an appropriate natural area.
Conveniently situated in terms of infrastructure and transportation.
Able to connect with high-quality research and training institutions.
Feasible plan for resource mobilization for technical and social infrastructure development as well as human resources and professional management team.
Building residential areas and public facilities nearby for experts and labor who work at the high-tech park and are involved with the construction process of the high-tech park.
Meeting environmental protection requirements as per legislation.
Ensuring defense and security measures are in place.

The decree lists the following conditions for expansion of high-tech parks:

The expanded area must fulfil the conditions outlined in Article 31 of the Law on High Technology for the establishment of a high-tech park.
For a high-tech agriculture park, the expanded area must meet the criteria specified in Article 32 of the Law on High Technology for the establishment of such parks.
The occupancy rate of the current high-tech park should be a minimum of 60 percent.

HCMC authorities seeks investments to key high-tech projects

Ho Chi Minh City, Vietnam’s financial and economic center, aims to draw investments totaling up to US$492 million across multiple research, production, and service ventures within the high-tech sector.

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This includes approximately US$190 million allocated to five projects focused on electronics and semiconductors, alongside US$302 million designated for an extensive data center initiative.

As per a recent announcement by the People’s Committee of Ho Chi Minh City, the Saigon Hi-tech Park, one of three similar parks in the country, will allocate approximately 10 hectares of combined space for these proposed projects, with further specifics yet to be disclosed.

Outlook

Vietnam is rapidly emerging as a promising destination for high-tech ventures.

As the country continues to prioritize technological advancement and industrial transformation to meet the needs of its young workforce and achieve national development goals, the government has introduced a series of incentives and support measures to encourage investment in high-tech parks and technology enterprises.

Priority industries in Vietnam, including high-tech enterprises, are eligible for corporate tax cuts, credit incentives, and exemptions or reductions in land and water surface lease fees.

A key policy initiative, Decree 13/2019, already encourages high-tech companies to relocate to Vietnam by providing access to Scientific/Technology Enterprise Certification, which unlocks a range of government incentives.

To learn more about the incentives for doing business in Vietnam, see our articles on incentives for Doing Business in Vietnam and Tax Incentives for Foreign Enterprises in Vietnam.

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