ESTABLISHMENT OF FOREIGN-INVESTED ENTERPRISES IN VIETNAM (FDI ESTABLISHMENT) 2026: INVESTMENT INCENTIVE POLICIES (TAX AND LAND INCENTIVES) FOR NEWLY ESTABLISHED FOREIGN-INVESTED ENTERPRISES IN VIETNAM
Vietnam has consistently positioned itself as one of the leading investment destinations in Southeast Asia by developing an increasingly transparent and investor-friendly legal framework. In addition to providing market access opportunities across numerous business sectors, the Vietnamese Government has implemented a wide range of investment incentive policies aimed at encouraging foreign direct investment (“FDI”), particularly in industries, geographical areas, and projects considered essential to the country's socio-economic development.
For foreign investors establishing a new enterprise in Vietnam, investment incentives represent one of the most significant factors influencing project feasibility and long-term profitability. Depending on the nature, scale, location, and business sector of the investment project, investors may be eligible for various forms of preferential treatment, including corporate income tax incentives, import duty exemptions, land-related incentives, and other forms of governmental support.
To assist investors in understanding the current investment incentive framework, Dai Quang Minh Company would like to provide an overview of the principal tax and land incentive policies available to newly established foreign-invested enterprises under Vietnamese investment legislation.
Clients who are interested in the procedures for establishing a foreign-invested enterprise in Vietnam (FDI) are welcome to contact Dai Quang Minh Company via: Hotline: 0932.191.299; Zalo: 0932.191.299; Email: info@quangminhlawfirm.com; Viber: (+84) 337 926 405; WhatsApp: (+84) 337 926 405; WeChat: (+84) 337 926 405 (ID: pouniverse) for free, comprehensive, prompt, and accurate assistance.
In addition, Dai Quang Minh Company provides a wide range of legal services, including sublicenses and specialized permits, enterprise registration, investment advisory services, foreign labor and work permit services, as well as ongoing legal consultancy for both domestic and foreign-invested enterprises.
Contact us:
- Zalo: 0932.191.299
- Gmail: info@quangminhlawfirm.com
- Viber: (+84) 337926405/ (+84) 869672216
- WhatsApp: (+84) 337926405/ (+84) 869672216
- Wechat: (+84) 337926405 (ID: _pouniverse)/ (+84) 869672216 (ID: DQM_Verna)
- Telegram: (+84) 337926405/ (+84) 869672216
I. Legal basic for investment incentives in Viet Nam
Vietnam has established a comprehensive legal framework to encourage both domestic and foreign investment by providing a variety of investment incentive policies. These incentives are designed to attract capital, promote technological advancement, facilitate regional economic development, and support industries that contribute to the country's long-term socio-economic objectives. As a result, investment incentives have become one of the key considerations for foreign investors planning to establish business operations in Vietnam.
The legal basis governing investment incentives is primarily found in the Law on Investment, the Law on Corporate Income Tax, the Law on Land, together with their implementing decrees and other relevant legislative instruments. These regulations prescribe the fundamental principles, eligibility requirements, forms of incentives, and administrative procedures applicable to investment projects seeking preferential treatment under Vietnamese law.
Under the current legal framework, investment incentives are generally granted based on the characteristics of the investment project rather than the identity of the investor. Eligible projects typically include those operating in incentivized business sectors, projects located in areas with difficult or exceptionally difficult socio-economic conditions, as well as investments involving high technology, scientific research and development, innovation, environmental protection, education, healthcare, renewable energy, and digital transformation. In addition, certain large-scale investment projects that satisfy statutory requirements relating to investment capital, technology, or employment creation may also qualify for preferential treatment.
It is important to emphasize that foreign investors do not automatically become entitled to investment incentives merely because they establish a foreign-invested enterprise in Vietnam. Instead, incentives are granted only where the investment project satisfies the specific statutory conditions prescribed by Vietnamese legislation. Consequently, investors should carefully assess the legal eligibility of their proposed projects at the planning stage to ensure that the intended investment structure is capable of benefiting from the available incentive policies.
II. Corporate Income Tax Incentives
Among the various investment incentive policies available under Vietnamese law, Corporate Income Tax (“CIT”) incentives are generally regarded as one of the most valuable financial benefits for newly established foreign-invested enterprises. These incentives are intended to encourage investment in priority industries, promote technological innovation, attract high-quality foreign capital, and support socio-economic development in disadvantaged regions. For many foreign investors, the availability of preferential corporate income tax treatment is an important factor when evaluating the financial feasibility and long-term profitability of an investment project in Vietnam.
Depending on the nature of the investment project, eligible enterprises may benefit from several forms of corporate income tax incentives. These preferential treatments commonly include reduced corporate income tax rates compared to the standard statutory rate, exemptions from corporate income tax for a specified number of years, and subsequent reductions in the amount of tax payable during a transitional incentive period. Such incentives can substantially reduce the overall operating costs of an enterprise during its initial years of business operation, thereby improving cash flow and facilitating further business expansion.
However, not every foreign-invested enterprise automatically qualifies for corporate income tax incentives. Under the current legal framework, eligibility is determined primarily by the characteristics of the investment project rather than the nationality of the investor or the amount of foreign ownership. Projects operating in incentivized business sectors, implementing advanced technologies, conducting scientific research and development, promoting environmental sustainability, or investing in areas with difficult or exceptionally difficult socio-economic conditions are generally more likely to satisfy the statutory requirements for preferential tax treatment. In addition, certain large-scale investment projects that meet specific legal criteria may also be entitled to enhanced tax incentives.
The duration and scope of corporate income tax incentives vary considerably depending on the applicable legal provisions and the specific characteristics of each investment project. Relevant factors include the business sector in which the enterprise operates, the geographical location of the investment, the scale of invested capital, the level of technological innovation, employment generation, and continued compliance with statutory investment conditions throughout the implementation of the project. Investors should therefore carefully review the applicable legislation and confirm the availability of incentives before incorporating projected tax benefits into their financial models or business plans.
From a practical perspective, foreign investors are strongly encouraged to conduct comprehensive legal and tax due diligence during the planning stage of their investment. Professional assessment of the project's eligibility for corporate income tax incentives can help investors optimize their investment structure, accurately estimate long-term operating costs, and minimize potential compliance risks arising from changes in tax legislation or licensing conditions. Early legal planning not only enhances investment efficiency but also provides greater certainty regarding the financial benefits that may be available throughout the lifecycle of the investment project.
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Focus on Business Growth: By entrusting legal procedures to us, clients can concentrate on their core business activities without concerns about legal formalities and compliance matters.
III. Land-related incentives
In addition to various tax incentive policies, Vietnam also provides a range of land-related investment incentives designed to reduce the initial costs associated with implementing investment projects. Given that land and premises often represent a significant portion of an investor's operating expenses, particularly in manufacturing, logistics, and infrastructure projects, these incentives play an important role in enhancing the overall attractiveness of Vietnam as an investment destination. Together with tax preferences, land incentives form an integral component of the Government's strategy to encourage both domestic and foreign investment in priority sectors and regions.
Depending on the characteristics of the investment project, eligible investors may benefit from several forms of land-related incentives under Vietnamese law. These incentives commonly include exemptions from, or reductions in, land rental fees, land use charges, and certain land-related financial obligations for specified periods. The extent of these incentives varies according to the applicable legal framework and the specific conditions satisfied by the investment project. By reducing long-term occupancy costs, land incentives can significantly improve the financial viability of investment projects, particularly those requiring substantial capital expenditure during the early stages of implementation.
Land-related incentives are most frequently available to investment projects carried out in areas that the Government has designated as having difficult or exceptionally difficult socio-economic conditions. In addition, projects implemented within industrial parks, export processing zones, high-tech parks, economic zones, innovation centers, and other specially designated investment areas may also qualify for preferential land policies. Certain investment projects operating in encouraged business sectors—such as high technology, renewable energy, environmental protection, education, healthcare, scientific research, and infrastructure development—may likewise become eligible for land incentives where the statutory requirements are fully satisfied.
Nevertheless, foreign investors should recognize that land-related incentives are not granted automatically merely because a foreign-invested enterprise has been established in Vietnam. Eligibility depends upon a comprehensive assessment of the investment project's legal characteristics, including its business sector, geographical location, investment objectives, and compliance with the applicable investment and land legislation. Furthermore, investors must properly complete the relevant procedures relating to investment approval, land allocation or land lease, environmental compliance, and other administrative requirements before any preferential land policy can be officially applied by the competent authorities.
From a practical perspective, foreign investors should incorporate land incentive considerations into the planning stage of their investment project rather than treating them as an issue to be addressed after the enterprise has been established. Careful selection of the project location, together with a thorough legal assessment of available land policies, may substantially reduce long-term operating costs and improve the overall commercial efficiency of the investment. Accordingly, obtaining professional legal advice before selecting the project site and submitting investment registration documents is strongly recommended to ensure that the investment structure is capable of maximizing the land-related incentives available under Vietnamese law.
IV. Practical considerations for foreign investors
Although Vietnam has established a comprehensive and increasingly competitive investment incentive regime, foreign investors should recognize that the availability of investment incentives is subject to strict legal conditions rather than being granted automatically upon the establishment of a foreign-invested enterprise. In practice, many investors mistakenly assume that the mere existence of foreign ownership is sufficient to obtain preferential treatment. However, under Vietnamese investment legislation, incentives are awarded based on the characteristics of the investment project, its location, business sector, investment scale, and compliance with statutory requirements, rather than solely on the nationality of the investor.
Accordingly, foreign investors should carefully evaluate the legal eligibility of their proposed investment project before making any commercial commitments or incorporating anticipated incentives into their financial projections. A comprehensive assessment should include the applicable market access conditions, investment incentive policies, sector-specific licensing requirements, land use regulations, and any other legal restrictions relevant to the intended business activities. Conducting such an assessment at the planning stage enables investors to determine whether the proposed investment structure is capable of satisfying the statutory conditions required for preferential treatment.
Proper legal planning is equally important throughout the investment licensing process. Investors should ensure that the information contained in their investment registration documents accurately reflects the objectives, scale, location, and operational characteristics of the proposed project, as these elements may directly affect the availability of investment incentives. In addition, compliance with post-licensing obligations—including capital contribution schedules, reporting requirements, environmental regulations, and operational commitments—is essential to maintaining entitlement to certain preferential policies during the implementation of the investment project.
Foreign investors should also bear in mind that Vietnam's investment legislation continues to evolve in response to changing economic conditions, international trade commitments, and national development strategies. As a result, the scope, duration, and eligibility requirements of investment incentives may be amended from time to time through newly enacted laws, decrees, or governmental policies. Investors should therefore continuously monitor legal developments throughout the lifecycle of their investment projects to ensure ongoing compliance and to identify any newly available incentive opportunities.
From a practical perspective, obtaining professional legal advice before commencing an investment project remains one of the most effective methods of minimizing regulatory risks and maximizing available investment incentives. Experienced legal advisors can assist investors in selecting the most appropriate investment structure, identifying applicable preferential policies, preparing compliant investment documentation, and communicating with the competent licensing authorities. Early legal support not only improves the efficiency of the investment approval process but also establishes a solid legal foundation for sustainable and compliant business operations in Vietnam over the long term.
Should you require further information regarding foreign investment regulations, international treaty commitments, or the establishment of a foreign-invested enterprise in Vietnam, Dai Quang Minh Company is ready to accompany and support you throughout every stage of your investment project, providing comprehensive legal advice and practical solutions tailored to your business needs.
If you are interested in the reporting procedures applicable to enterprises engaged in the business of cybersecurity products and services, please contact Dai Quang Minh Company via Hotline: 0932.191.299; Zalo: 0932.191.299; Email: info@quangminhlawfirm.com; Viber: (+84) 337 926 405; WhatsApp: (+84) 337 926 405; WeChat: (+84) 337 926 405 (ID: pouniverse) for free, comprehensive, prompt, and accurate assistance..
In addition, Dai Quang Minh Company provides a wide range of legal services, including sublicenses and specialized permits, enterprise registration, investment advisory services, foreign labor and work permit services, as well as ongoing legal consultancy for both domestic and foreign-invested enterprises.
Contact us:
- Zalo: 0932.191.299
- Gmail: info@quangminhlawfirm.com
- Viber: (+84) 337926405/ (+84) 869672216
- WhatsApp: (+84) 337926405/ (+84) 869672216
- Wechat: (+84) 337926405 (ID: _pouniverse)/ (+84) 869672216 (ID: DQM_Verna)
- Telegram: (+84) 337926405/ (+84) 869672216
During the course of your business operations, if you have any questions or require further assistance, please do not hesitate to contact Dai Quang Minh Company. We are always ready to support and accompany you throughout the establishment, operation, and growth of your business.
We wish you sustainable growth, continued success, and remarkable achievements in your business endeavors.
Sincerely,
Dai Quang Minh Company. /.
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