Vietnam’s Investment Support Fund for High-Tech Enterprises under Decree 182

Posted by Written by Vu Nguyen Hanh Reading Time: 7 minutes

On December 31, 2024, the Vietnamese Government issued Decree No. 182/2024/ND-CP (“Decree 182”) on the establishment, management, and utilization of the Investment Support Fund. The decree shows Vietnam’s commitment to fostering innovation and establishing itself as a hub for advanced technology.

Decree 182 has been widely praised by experts as a landmark initiative reflecting the government’s commitment to attracting world-class high-tech businesses to invest in Vietnam. The decree establishes the Investment Support Fund (ISF), offering cash grants and subsidies to businesses undertaking eligible investment projects in the country. It outlines clear eligibility criteria, ensuring alignment with Vietnam’s economic development priorities and goals.

Decree 182 came into effect on December 31, 2024, and applies retrospectively from the fiscal year 2024 onward.

Also read: Vietnam’s Digital Infrastructure Master Plan to 2030: Roadmap to a High-Tech Future

How does the Vietnam Investment Support Fund work?

The Investment Support Fund is a national fund established by the Vietnamese Government and managed by the Ministry of Planning and Investment. It operates as a non-profit entity, serving public welfare objectives.

Functions and operations

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The ISF functions as a public service unit under the Ministry of Planning and Investment, governed by specific organizational and operational regulations outlined in Decree 182. It holds legal status, operates under its own seal, and maintains budget accounts with the State Treasury for receiving state funds, as well as separate accounts with the State Treasury and commercial banks for non-state budget sources.

Its primary responsibilities include:

  • Managing financial resources to support eligible beneficiaries as specified in Decree 182;
  • Allocating and utilizing funds in accordance with regulatory guidelines;
  • Providing financial assistance to enterprises based on defined conditions and limits; and
  • Ensuring compliance with reporting, financial management, accounting, and auditing regulations.

Powers and personnel

The ISF is authorized to:

  • Perform activities aligned with its objectives;
  • Hire experts and organizations to implement its tasks; and
  • Deposit non-state financial resources with commercial banks or the State Treasury.

The fund is managed by a Fund Management Board and a Fund Executive Body. Revenues generated by the ISF are exempt from corporate income tax.

Types funding support provided by Vietnam’s Investment Support Fund

The Investment Support Fund provides two types of financial support: initial investment support and cost support. Eligible businesses may choose only one type of support if they qualify for both.

Initial investment support

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Enterprises investing in research and development (R&D) center projects in sectors like semiconductors and artificial intelligence (AI) that meet specific criteria can receive support of up to 50 percent of the project’s initial investment costs or other levels as determined by the government.

Cost support

According to Article 16 of Decree 182, the ISF provides financial aid to businesses for the following costs:

  • Training and human resource (HR) development;
  • R&D;
  • Investment in creating fixed assets;
  • Manufacturing of high-tech products;
  • Investment in social infrastructure works; and
  • Other cases as determined by the Government.

Eligible entities

Entities eligible for cost support under the ISF include:

  • High-tech enterprises;
  • Enterprises with investment projects in high-tech product manufacturing;
  • Enterprises with high-tech application projects; and
  • Enterprises with investment projects in R&D centers.

Cost Support for Eligible Projects (*) under Vietnam’s Investment Support Fund (Decree 182)

Costs

Support

Training and HR development costs

Up to 50 percent of the actual expenses for HR development training activities incurred during the fiscal year for Vietnamese employees.

R&D costs

Based on the actual R&D expenses incurred during the fiscal year, companies will receive support at varying progressive rates, as outlined below:

  • High-tech enterprises and companies with high-tech application projects: 20-30 percent.
  • Enterprises investing in R&D centers: 10-20 percent.
  • Companies with high-tech product manufacturing projects: 1-10 percent.

Investment costs for forming fixed assets

Companies will receive support payments at a progressive rate calculated on the historical cost of the newly acquired fixed assets. However, this support will not exceed 0.5 percent of the total investment capital:

  • High-tech enterprises and companies with high-tech application projects: 8-10 percent.
  • Companies with high-tech product manufacturing projects: 1-3 percent.

High-tech product manufacturing costs
  • High-tech enterprises and companies with high-tech application projects: 1-3 percent of the added manufacturing value of high-tech products in the fiscal year.
  • Companies with high-tech product manufacturing projects: 0.5-1 percent of the added manufacturing value of the high-tech products in the fiscal year.

Investment costs for social infrastructure projects
  • A maximum of 25 percent of actual costs incurred and expended during the fiscal year.

Note: (*) Companies investing in R&D center projects will not be supported for costs related to fixed asset formation and high-tech product manufacturing. Other projects that do not meet the requirements will have to wait for future support as determined by the government.

Principles for applying support policies

Article 3 of Decree 182 establishes the principles governing the application of support policies under the Investment Support Fund. Key principles include:

Cost support principles

Concurrent support: Businesses meeting criteria for multiple cost support categories can receive support for all qualifying categories simultaneously.

Currency and duration: Cost support is provided in Vietnamese Dong (VND) and is available for a maximum of five years per enterprise or project, unless extended by the Prime Minister.

Application period: Support for eligible cost items begins from the financial year in which the high-tech enterprise or project generates revenue and incurs qualifying costs. These costs must fall within the financial year when any of the following certificates are issued:

  • Certificate of high-tech enterprise;
  • Certificate of high-tech application;
  • Certificate of a newly established enterprise from a high-tech product manufacturing project;
  • Certificate of high-tech product manufacturing project; and
  • Certificate of R&D center project.

Application process: Enterprises must submit their cost support applications after the financial year ends for which the support is sought.

Simultaneous eligibility principle

Enterprises with projects that have obtained investment policy approval, an investment registration certificate (IRC), or equivalent legal documents before or after the effective date of Decree 182 are eligible for ISF support.

If a business qualifies for support from both the ISF and other government funds or programs for the same expense, it must choose only one source of assistance. Support for the same expense cannot be claimed from multiple sources unless explicitly permitted by the Government or the Prime Minister.

Self-responsibility principle

Enterprises are responsible for self-declaring the legality, accuracy, and truthfulness of all data and information submitted in cost support applications. They bear full legal responsibility for their declarations.

Funds received from the ISF are excluded from taxable income for corporate income tax purposes.

Application process to seek investment support under the ISF

Enterprises seeking investment support under the ISF must submit their applications to the designated agency before July 10 of the year following the financial year for which the support is requested.

Once the application is submitted, the request is processed by the fund’s Executive Agency, reviewed by the Fund Management Council, and subsequently evaluated by the Vietnam Government.

The Government is responsible for reviewing and deciding on the total investment support amount allocated to the enterprise.

Conditions to apply for investment support payment

Financial Conditions to Apply for Investment Support Payment

 

High-tech enterprises

Enterprises with investment projects in manufacturing high-tech products

Enterprises with high-tech application projects

Enterprises with investment projects in R&D centers

Annual revenue
  • Minimum VND 10 trillion (US$399 million) for the chip industry, semiconductor integrated circuits, and AI data centers.
  • Minimum VND 20 trillion (US$797 million) for the remaining sectors.

Non-applicable

Capital scale

  • Minimum VND 6 trillion (US$239 million) for the chip industry, semiconductor integrated circuits, and artificial intelligence data centers.
  • Minimum VND 12 trillion (US$470 million) for the remaining sectors.

Minimum VND 3 trillion (US$118 million)

Exemptions from revenue and investment capital criteria

The following companies and projects are exempted from meeting revenue and investment capital criteria under Decree 182:

Companies/projects with high-tech products or technology: Entities involved in products or technology included in the Prime Minister’s list of high-tech fields and high-tech products prioritized for development.

Microchip design projects: Projects in microchip design are exempt, provided they commit to:

  • Employing at least 300 Vietnamese engineers and managers within five years of operation in Vietnam; and
  • Annually supporting the training of at least 30 Vietnamese engineers in the field of microchip design.

Deadlines for Minimum Investment Disbursement under ISF

 

High-tech enterprises

Enterprises with investment projects in manufacturing high-tech products

Enterprises with high-tech application projects

Enterprises with investment projects in R&D centers

Projects granted IRC, Decisions on investment policy approval (IPAD), or Decisions on investor approval (IAD) from the effective date of Decree 182

 
  • To disburse a minimum of VND 12 trillion (US$478 billion) within five years from the date the required documents are initially issued; or
  • To disburse a minimum of VND 10 trillion within three years from the date the required documents are initially issued.

To disburse VND 1 trillion within 3 years from the date of investment license issuance.

 

Investment in the fields of chip manufacturing, semiconductor integrated circuits, or artificial intelligence data centers:

  • To disburse a minimum of VND 6 trillion within 5 years from the date the required documents are initially issued; or
  • To disburse a minimum of VND 4 trillion (US$159 million) within 3 years from the date the required documents are initially issued.

Projects with registered capital below the minimum of VND 12 trillion before the effective date of this Decree and subsequently adjusted to meet the minimum capital requirement

Adjustments increasing capital is less than VND 10 trillion:

  • To disburse a minimum of VND 10 trillion within 3 years from the date of the adjustment.
  • Adjustments increasing capital is VND 10 trillion: To disburse a minimum of VND 12 trillion within 5 years from the date of the adjustment.

Chip production, semiconductor integrated circuit, and AI data center projects with registered capital below the minimum of VND 6 trillion before the effective date of this Decree and subsequently adjusted to meet the minimum capital requirement

If the adjusted capital increase is less than VND 4 trillion:

  • To disburse a minimum of VND 4 trillion within 3 years from the adjustment date.
  • If the adjusted capital increase is VND 4 trillion or more: To disburse a minimum of 6 VND 6 trillion within 5 years from the adjustment date.

Projects with registered investment capital of at least VND 12 trillion (or VND 6 trillion for chip production, semiconductor integrated circuits, and artificial intelligence data centers) under Certificate of investment

Projects with IRCs, IPADs, IADs, or other equivalent legal documents issued or adjusted before the effective date of this Decree, but with incomplete disbursement, must:

  • Adhere to the disbursement timeline specified in the issued documents; or
  • Disburse a minimum of VND 12 trillion (or VND 6 trillion) within five years from the date of the initial issuance or the latest adjustment of the investment capital specified in the relevant documents prior to the Decree’s effective date.

 

Key takeaways

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Businesses must promptly begin evaluations and necessary preparations to qualify for ISF fund support and be prepared to submit their initial applications before the July 2025 deadline. Necessary steps to consider include:

  • Review ISF policies carefully: Firms must thoroughly assess the eligibility criteria and conditions to uncover potential advantages your business can gain from this new incentive scheme.
  • Identify and address gaps: Companies need to assess their existing qualifications in relation to the eligibility criteria of the new incentive policy, as well as identify any deficiencies that potentially impact their eligibility. Proactive measures, such as applying for High-Tech Certification when applicable, must be taken to ensure compliance and preparedness for these incentives.
  • Claim eligible incentives: If confirmed as eligible, businesses must carefully prepare and submit all the necessary documents to claim subsidies from the ISF, as well as keep track of the process to swiftly address any arising issues.

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