As Vietnam rises as a vital link in global supply chains, its industrial zones are drawing strong interest from investors. To support this growth, the government is enhancing incentive policies—offering tax breaks, land lease advantages, and manufacturing support.
Overview of vietnam industrial area Incentive Policies
Vietnam continues to enhance its investment climate by offering a range of incentives aimed at attracting foreign direct investment (FDI), particularly in industrial zones. These incentives are designed to promote economic development, technological advancement, and infrastructure improvement. Key areas of focus include tax benefits, land lease terms, and support for manufacturing investments.
Tax Incentives
Vietnam offers a range of tax incentives to attract investment in its industrial zones, tailored to the nature and location of each project. Notably, enterprises operating in specially encouraged sectors or regions may benefit from a reduced corporate income tax (CIT) rate of 10% for up to 15 years. In addition, eligible projects can enjoy tax holidays, including a full CIT exemption for the first 4 years, followed by a 50% reduction over the next 9 years.(1) Investors are also entitled to import tax exemptions on goods used as fixed assets, as well as raw materials, supplies, and components needed for production. (2)
Land Lease Incentives
Vietnam provides attractive land lease incentives to encourage investment in industrial zones. Projects located in areas with challenging socio-economic conditions may qualify for land rent exemptions of up to 15 years, or even for the entire duration of the project’s operation. Additionally, investors can access preferential lease rates, particularly in industrial parks that offer long-term leasing options, making it more cost-effective to establish and maintain operations.(3)
Land Lease Terms
Vietnam offers favorable land lease terms to attract investors in its industrial zones. Under current regulations, land leases can extend up to 50 years, with the possibility of renewal. In certain cases—such as projects requiring substantial investment or located in areas with difficult socio-economic conditions—the lease term may be extended up to 70 years.(4)
Investors have flexibility in payment options. They can choose between annual rent payments or a one-time upfront payment for the entire lease term. Opting for a lump-sum payment often grants broader rights, including the ability to transfer, sublease, or mortgage the land and associated assets .
Support for Manufacturing Investment
Vietnam offers a range of support measures to encourage manufacturing investments in its industrial zones. Local authorities provide comprehensive administrative support, assisting investors with procedures to streamline the process and reduce both time and costs. Additionally, there is ongoing investment in infrastructure, ensuring that industrial zones are equipped with modern facilities and utilities, which are essential for supporting manufacturing activities. This commitment to infrastructure development creates an ideal environment for investors looking to establish or expand their manufacturing operations in Vietnam.(5)
Detailed Investment Incentive Policies for Nam Dinh Vu Industrial Park
Nam Dinh Vu Industrial Park, located in Hai Phong, offers a comprehensive set of incentives designed to attract investors. Its strategic location near major seaports provides easy access to international shipping routes, enhancing its connectivity for global trade. The park boasts integrated infrastructure, including an internal seaport, modern logistics facilities, and a well-developed transportation network, ensuring smooth operations for businesses. Additionally, investors can benefit from attractive tax incentives such as Corporate Income Tax (CIT) reductions, tax holidays, and import tax exemptions. The park also offers competitive land lease rates and flexible lease terms to meet the diverse needs of investors. To further assist investors, Nam Dinh Vu provides professional customer support services throughout the entire investment process, ensuring a seamless experience.
Source:
(1), (3). Vietnam Briefing
(2). Viet An Law
(4). Allens
(5). Nam Dinh Vu