A summary of information about the business sectors and trades eligible for enterprise income tax incentives and the principles of application under the latest Law on Enterprise Income Tax.
1. List of business sectors and trades eligible for enterprise income tax incentives
The business sectors eligible for enterprise income tax incentives are provided in Clause 2, Article 12 of the Law on Enterprise Income Tax 2025, including:
No.
Business sectors and trades eligible for enterprise income tax incentives
1
Application of high technologies, venture capital investment for the development of high technologies on the list of prioritized high technologies as prescribed in the Law on High Technologies; application of strategic technologies as prescribed by law; incubation of high technologies and incubation of high-tech enterprises; investment in construction and operation of high-tech incubators and incubators for high-tech enterprises
2
Production of software products; production of cybersecurity products and provision of cybersecurity services meeting the conditions prescribed by the law on cybersecurity; production and provision of key digital technology products and services, production of electronic equipment in accordance with the law on the digital technology industry; research and development, design, manufacturing, packaging, and testing of semiconductor chip products; development of artificial intelligence data centers
3
Production of supporting industry products on the List of prioritized supporting industry products for development as prescribed by the Government, which satisfy one of the following criteria: (i) Supporting industry products for high technologies as prescribed in the Law on High Technologies; (ii) Supporting industry products for manufacturing in the textiles, garments, leather, footwear, electronics, and informatics industries (including design and production of semiconductors), automobile manufacturing and assembly, mechanical engineering sectors, which, as of the effective date of this Law, have not yet been domestically manufactured or are manufactured but must meet European Union technical standards or equivalent (if any), as prescribed by the Minister of Industry and Trade
4
Production of renewable energy, clean energy, energy generated from waste disposal; environmental protection; production of composite materials, lightweight construction materials, and rare materials; defense and security production and production of products for industrial mobilization as prescribed by the law on defense, security, and industrial mobilization; production of key chemical and key mechanical industry products in accordance with the law
5
Investment in water plants, power plants, water supply and drainage systems, bridges, roads, railways, airports, seaports, river ports, airfields, terminals and other especially important infrastructure facilities under the Prime Minister’s decisions
6
High-tech enterprises and high-tech agricultural enterprises as prescribed in the Law on High Technologies; science and technology enterprises in accordance with the Law on Science, Technology and Innovation
7
Investment projects in the manufacturing sector that meet the following conditions: (i) Having a minimum total investment capital of VND 12,000 billion and disbursing the registered total investment capital within no more than 05 years from the date of investment approval in accordance with the law on investment; (ii) Applying technology that meets the requirements as prescribed by the Minister of Science and Technology
8
Investment projects eligible for special investment incentives and support as prescribed in Clause 2, Article 20 of the Law on Investment. The Government shall provide detailed regulations on the disbursement timeline for the registered total investment capital of projects specified in this Point
9
Afforestation, forest care and protection; production, breeding, and crossbreeding of plant varieties and livestock breeds; investment in post-harvest preservation of agricultural products, preservation of agricultural products, aquatic products, and food; production, exploitation, and refining of salt, excluding salt production specified in Clause 1, Article 4 of this Law
10
Forestry cultivation
11
Plant-based products, planted forests, animal husbandry, aquaculture, and the processing of agricultural and aquatic products. Incomes from processing of agricultural and aquatic products as prescribed in this Point must meet the conditions provided in Clause 1, Article 4 of this Law
12
Production of high-grade steel; production of energy-saving products; manufacture of machinery and equipment serving agriculture, forestry, fishery, and salt production; manufacture of irrigation equipment; production of animal feed and aquaculture feed
13
Production and assembly of automobiles; production of other digital technology products
14
Business investment in technical establishments in support of small- and medium-sized enterprises, and small- and medium-sized enterprise incubators; and business investment in co-working space in support of small- and medium-sized innovative startup enterprises in accordance with the law on support for small- and medium-sized enterprises
Cooperatives and unions of cooperatives operating in the fields of agriculture, forestry, fishery, and salt production
17
Socialization activities in the fields of education and training, vocational training, healthcare, culture, sports, and environment, as prescribed in the list of types, scale criteria, and standards issued by the Prime Minister; forensic assessment activities
18
Investment in the construction of social houses for sale, lease, or lease-purchase to beneficiaries of social housing policies as prescribed in the Housing Law
19
Publishing activities in accordance with the Publication Law
20
Press activities (including advertising in the press) as prescribed by the Press Law
2. Geographical areas eligible for enterprise income tax incentives
According to Clause 3, Article 12 of the Law on Enterprise Income Tax, the geographical areas eligible for enterprise income tax incentives as prescribed by the Government include:
Areas with extremely difficult socio-economic conditions;
Areas with difficult socio-economic conditions;
Economic zones, hi-tech parks, agricultural zones applying high technologies, and concentrated digital technology zones.
3. Principles of enterprise income tax incentives
Enterprise income tax incentives are implemented in accordance with Article 12 of the Law on Enterprise Income Tax:
The preferential enterprise income tax rates shall be implemented in accordance with Articles 13 and 14 of this Law.
In case another law provides for enterprise income tax incentives different from the provisions of this Law, the provisions of this Law shall prevail, except for the Law on the Capital and resolutions of the National Assembly stipulating special and specific mechanisms and policies.
In the same period, where an enterprise is eligible for multiple tax incentives for the same income under this Law, the enterprise may opt for the most favorable incentive rate.
The Government shall provide regulations on the application of tax incentives in the following cases: • Cases of applying tax incentives based on geographical criteria; • Cases of tax incentives in the fields of agriculture, forestry, fishery, and salt production; • Cases where, in the first tax period in which turnover is generated or in the first tax period in which income is generated from the investment project of the enterprise (including new investment projects, expanded investment projects, high-tech enterprises, agricultural enterprises applying high technologies, and science and technology enterprises), the duration of turnover or income generation eligible for tax incentives is less than 12 months.
Enterprises established or enterprises with investment projects arising from merger, consolidation, division, separation, change of ownership, or conversion of the type of enterprise shall be responsible for fulfilling their obligations to pay enterprise income tax (including any fines, if applicable). At the same time, they shall be entitled to inherit the enterprise income tax incentives (including any losses not yet carried forward) of the enterprise or investment project prior to the merger, consolidation, division, separation, or conversion, provided that the conditions for enterprise income tax incentives and conditions for loss carry-forward as prescribed by law continue to be satisfied.
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