Doing business in Vietnam in the science and technology sector has never been more appealing. Effective from March 20, 2019, the Vietnamese government has enforced Decree 13/2019 with regard to preferential treatment for science and technology companies in credit incentives, corporate tax cuts and exemptions, and reduction or exemption in water and land surface lease fees.
Furthermore, there are currently more than 380 companies in Vietnam certified by the government as science and technology enterprises; 43 companies are acknowledged as high-tech entities; and many others are still in the process of receiving their certificates. The possession of the certificates means that the companies are eligible for support policies and incentives from the Vietnamese government.
Through this article, Cekindo will tell you more about the benefits of establishing a science and technology firm in Vietnam.
What are Scientific and Technological Results?
The definitions for scientific and technological results are:
- Inventions, industrial designs, utility solutions, integrated circuits designs, or semiconductor plant protected under the intellectual property or other international treaties signed by Vietnam. Computer programs require the copyright certificate.
- New plant, livestock, and aquatic breeds or varieties; other technology innovation accepted by the Ministry of Agriculture and Rural Development in Vietnam.
- Projects with outcomes that have won awards related to science and technology governed by competent authorities.
- Results recognised and certified by competent agencies.
- Transferred technology certified by the competent authorities.
Doing Business in Vietnam: Incentives for Science and Technology Firm
Incentives in Investment Credits
Investments in projects from a company’s scientific research are eligible for the state investment credit. Science and technology companies that have mortgages will be able to get preferential loans from commercial banks with a maximum 50% interest reduction.
In addition, projects received funds from National Technological Innovation Fund and Science and Technology Development Fund will have access to loans from commercial banks with guarantees to borrow capital or preferential interest rates.
Enterprises with potential and practical projects in science and technology will also be entitled Technological Renewal’s preferential loans from the National Fund, as well as the fund from the Ministry of Science and Technology’.
Corporate Tax Reduction/Exemption
Science and technology companies can get corporate tax exemption or reduction for revenue earned from the product sales or development of their research projects.
The said companies are entitled to four-year corporate tax exemption, followed by a 9-year corporate tax reduction of 50%. However, the companies are only eligible when their science and technology projects have at least 30% of their total turnover.
Import and Export Tax Incentives
Import and export tax incentives are also one of the benefits for setting up a science and technology firm in Vietnam. These incentives apply for the company activities such as production, research and development, and other relevant activities.
Land and Water Surface Lease Fees Exemption/Reduction
Science and technology enterprises can enjoy the benefits of reduction or exemption in their water and land surface lease fees. In accordance with Decree 13/2019, this decision will be executed by the Department of Science and Technology in Vietnam.
Other Support Policies
Apart from all the mentioned incentives and benefits, science and technology companies are allowed to utilise facilities and equipment of governmental research and technology facilities, national laboratories, and other technology incubators for free with priority access. Enterprises just have to pay for raw materials used for the research activities.
Furthermore, the companies do not have to pay the registration fee for house ownership rights and land use rights.
Business Incorporation in Vietnam with Cekindo
It’s obvious that now is a perfect time for investors to start doing business in Vietnam by establishing a science and technology firm.
Our team of professional consultants and legal specialists can provide you with detailed information on how to incorporate your business through company registration in Vietnam.
Get in touch with us for tailor-made solutions by filling in the form below.