Vietnam is currently accelerating its digital transformation and deepening its participation in the global technology value chain. In this context, improving incentive mechanisms for large-scale technology projects is regarded as a critical lever to attract high-quality investment capital. Notably, technology projects with total investment capital of VND 6,000 billion or more may be considered for an extension of tax exemption and reduction periods, creating greater room for enterprises to invest with confidence over the long term, expand production, and strengthen research and development activities in Vietnam.
According to regulatory authorities, the global shift in technology supply chains is taking place rapidly, particularly in sectors such as digital technology, artificial intelligence (AI), semiconductors, data centers, cloud computing, and high value-added digital services. Many countries in the region have already introduced highly competitive incentive packages covering taxation, land use, and human resources to attract major technology corporations.
Against this backdrop, Vietnam has identified the need for flexible and competitive policies, especially for projects with large capital requirements, long payback periods, and strong spillover effects on the broader economy. The proposal to extend corporate income tax exemption and reduction periods for technology projects valued at over VND 6,000 billion is therefore seen as a practical and timely policy response.
At present, Vietnam has established and developed a number of concentrated digital technology parks in key localities such as Hanoi, Ho Chi Minh City, Da Nang, and Can Tho. These parks are comprehensively planned spaces that bring together technology enterprises, research and development (R&D) centers, human resource training facilities, and shared infrastructure.
These digital technology parks not only serve as production and business hubs but also function as the core of the innovation ecosystem, connecting enterprises with research institutes, universities, and technology startups. In particular, digital infrastructure such as data centers, cloud computing platforms, supercomputers, and high-tech laboratories is considered a key factor in helping enterprises reduce initial investment costs and shorten project implementation timelines.
Under current regulations, enterprises investing in high-tech and digital technology sectors within concentrated technology parks are entitled to corporate income tax incentives, including tax exemptions during the initial years of operation, followed by a 50% tax reduction in subsequent years.
For projects with total investment capital of VND 6,000 billion or more, authorities are considering mechanisms that would allow the tax exemption and reduction period to be extended, potentially up to 1.5 times the standard incentive duration, depending on the project’s scale, sector, and level of contribution to socio-economic development.
This approach is viewed as a “tailor-made” policy for large-scale projects, as technology investments worth thousands of billions of dong typically involve long investment cycles, substantial R&D costs, and require many years to reach the break-even point.
In addition to corporate income tax incentives, large technology projects may also access a range of other support policies, including:
Exemptions or reductions in land and infrastructure rental fees during the initial project implementation phase;
mport tax exemptions for machinery, equipment, and technological production lines serving high-tech research and manufacturing;
Administrative support measures aimed at shortening investment licensing and approval timelines;
Favorable mechanisms for attracting and employing highly skilled experts and technical personnel, both domestic and international.
The coordinated implementation of these policies is expected to create a more open, transparent, and attractive investment environment for strategic investors.
Large-scale technology projects not only bring significant capital inflows but also generate strong spillover effects across multiple sectors of the economy. The development of technology hubs, data centers, and AI research zones is expected to drive demand in construction, energy, telecommunications, logistics, and supporting services.
More importantly, these projects contribute to upgrading technological capabilities, promoting knowledge transfer, developing high-quality human resources, and gradually fostering “Make in Vietnam” technology enterprises with international competitiveness.
According to the Government’s orientation, incentive policies for major technology projects are not solely based on capital scale but are also linked to criteria for sustainable development, efficient energy use, environmental protection, and long-term contributions to local communities.
Extending tax exemption and reduction periods is therefore not merely a financial incentive, but a strategic tool to steer investment flows toward key technology sectors with high value-added potential, in line with Vietnam’s digital economy development strategy in the coming period.
In the context of increasingly intense competition for investment, building flexible and sufficiently attractive incentive mechanisms for technology projects valued at over VND 6,000 billion is seen as a necessary step to ensure Vietnam is not left behind. When global technology “giants” choose their investment destinations, stable, transparent, and long-term-oriented policies play a decisive role.
If implemented effectively, the extension of tax exemption and reduction periods is expected to help position Vietnam as a strategic destination for large-scale technology projects, thereby creating new momentum for economic growth and accelerating the national digital transformation process.
(Source: Nguoi Lao Dong Newspaper)