RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/VNM/13/Add.1
7 January 2002 
 (02-0061) 
Working Party on the 
Accession of Viet Nam Original:   English 
 
 
 
ACCESSION OF VIET NAM  
New and Updated Notifications Pursuant to Article XVI:1 of the GATT 1994  
and Article 25 of the Agreement on Subs idies and Counterv ailing Measures   
(Period covered by the Notification:  1999-2000)  
Addendum  
 The Government of the Socialist Republic of  Viet Nam has submitted the following New and 
Updated Notifications Pursuant to Article XVI:1 of  the GATT 1994 and Article 25 of the Agreement on 
Subsidies and Countervailing Measures, with the request  that it be circulated to the members of the 
Working Party.   
_______________ 
 
 The following notification provides details of programmes for the years 1999 through 2000. It 
serves as the new subsidies notification for programme s as well as the updated notification regarding this 
period. This notification may be supplemented, in due time, to incorporate further elements or 
clarifications. 
 In this notification, Viet Nam has include d certain measures which may not constitute 
“subsidies” under Article 1 of the Agreement on Subsidies and Countervailing measures (“the Agreement” hereinafter) and certain subsidies wh ich may not be “specific” under Article 2 of the 
Agreement in order to achieve the maximum transparen cy with regard to the relevant programmes and 
measures effective within its territory during the notified period.  WT/ACC/VNM/13/Add.1 
 Page i 
 
 
  TABLE OF CONTENTS  
 
I. SUPPORT MEASURES IN AGRICULTURAL SECTOR .. ................................................1 
II. IMPORT TARIFF RATES CONTINGENT UPON LOCALISATION RATIOS 
WITH RESPECT TO PRODUCTS AND PARTS OF MECHANICAL-
ELECTRIC-ELECTRONIC INDUSTRIES ..........................................................................5 
III. INVESTMENT INCENTIVES APPLIED TO VIETNAMESE ENTERPRISES’ 
LABOUR-INTENSIVE PROJECTS ......................................................................................9 
IV. SUPPORT FOR ENTERPRISES EMPLOYING A GREAT NUMBER OF 
FEMALE EMPLOYEES .......................................................................................................11 
VI. INVESTMENT INCENTIVES O FFERED TO ENTERPRISES WITH 
FOREIGN OWNED CAPITAL WHICH PRODUCE GOODS FOR EXPORT..............16 
VII. INVESTMENT INCENTIVES OFFERED TO VIETNAMESE ENTERPRISES 
WHICH HAVE PROJECTS TO PRODUCE GOODS FOR EXPORT............................19 
VIII. INVESTMENT INCENTIVES OFFERED TO ENTERPRISES WITH 
FOREIGN OWNED CAPITAL WHICH OPERATE IN CERTAIN BUSINESS 
FIELDS AND SECTORS.......................................................................................................22 
IX. INVESTMENT INCENTIVES OFFE RED TO VIETNAMESE ENTERPRISES 
WHICH OPERATE IN CERTAIN BUSINESS FIELDS AND SECTORS......................24 
X. INVESTMENT INCENTIVES OFFERED TO ENTERPRISES WITH 
FOREIGN OWNED CAPITAL WHICH OPERATE IN CERTAIN AREAS .................27 
XI. INVESTMENT INCENTIVES OFFE RED TO VIETNAMESE ENTERPRISES 
WHICH HAVE PRODUCTION OR BUSINESS PROJECTS LOCATED IN 
CERTAIN AREAS.................................................................................................................. 29 
XII. EXPORT SUPPORT FUND ..................................................................................................33 XIII. DEVELOPMENT ASSISTANCE FUND .............................................................................37 
XIV. INVESTMENT ASSISTANCE FOR SCIENCE AND TECHNOLOGY 
DEVELOPMENT ...................................................................................................................4 0 
XV. SUPPORT FOR THE IMPLEMENTATION OF THE SCHEMES FOR 
DEVELOPMENT OF PRIORITY INDUSTRIAL PRODUCTS.......................................45 
XVI. ASSISTANCE FOR THE  DEVELOPMENT OF SOFTWARE INDUSTRY .................49 
XVII. ASSISTANCE FOR VIETNAMESE NEWLY ESTABLISHED PRODUCTION 
AND TRADING BUSINESSES, FOR VIETNAMESE EXPANDED PRODUCTION BUSINESSES, AND FOR VIETNAMESE TRADING 
BUSINESSES  MOVING TO MOUNTAINOUS, ISLAND AND OTHER 
DISADVANTAGED AREAS.................................................................................................52 
XVIII. ASSISTANCE FOR VIETNAMES E BUSINESSES HAVING SPECIAL 
ACTIVITIES..................................................................................................................... ......55 
 
  WT/ACC/VNM/13/Add.1 
 Page 1 
 
 
  I. SUPPORT MEASURES IN AGRICULTURAL SECTOR1 
1. Title of the subsidy program 
 Support measures in the agricultural sector. 
2. Policy objectives and/or purposes of the subsidy 
 To provide support for organisations, individua ls, and households engaging in agriculture-
related activities. 
3. Background and authority for the subsidy   
a. Background  
- Law on Agricultural Land Use Tax dated 10 July 1993;  
- Decree No.74-CP of the Government dated 25 October 1993 providing details to 
implement the Law on Agricultural Land Use Tax dated 10 July 1993; 
- Circular No.89TC/TCT of Ministry of Finance dated 9 November 1993 guiding the 
implementation of Decree No.74-CP of the Government dated 25 October 1993; 
- Circular No.60TC/TCT of Ministry of Finance dated 14 July 1994 providing further 
guidelines on the calculation of reduction or exemption of agricultural land use tax; 
- Government Resolution No.03/2000/NQ-CP  dated 2 February 2000 on farms’ 
economic activities; 
- Circular No.82/2000/TT-BTC of Ministry of Finance dated 14 August 2000 guiding 
financial policies to promote farms’ economic activities; 
- Government Resolution No.09/2000/NQ-CP dated 15 June 2000 on some orientations 
and policies related to the change of ec onomic structure and the disposal of 
agricultural products; 
- Circular No.91/2000/TT-BTC of Ministry of Finance dated 6 September 2000 
guiding the implementation of the Government Resolution No. 09/2000/NQ-CP dated 
15 June 2000; 
- Decree No.15-CP of the Government dated 21 February 1997 on policies to 
encourage the development of cooperatives; 
- Circular No.44/1999/TT-BTC of Ministry of  Finance dated 26 April 1999 guiding tax 
incentives applicable to cooperatives; 
b. Authority 
- Ministry of Finance; 
- Ministry of Agriculture and Rural Development. 
4. Form of the subsidy 
- Preferential treatment with resp ect to value-added tax (VAT); 
- Preferential treatment with respect to corporate income tax; 
- Reduction, exemption of land rental; 
- Reduction, exemption of agricultural land use tax. 
                                                      
1 This Program includes other agricultural support measures, in addition to those provided in the 
Notification on Agricultural Domestic support and Export subsidy (in the format of document WT/ACC/4) and those notified under other programs hereinafter. WT/ACC/VNM/13/Add.1 
Page 2  
 
5. To whom and how the subsidy is provided 
a. Organisations, individuals dealing in long-distance wholesale trading activities: 
- Organisations, individuals d ealing in long-distance whol esale trading activities are 
exempted from VAT and corporate income  tax payable on long-distance wholesale 
trading activities with respect to unproc essed basic agricultural products grown or 
raised in Viet Nam. 
- Unprocessed basic agricultural products include: 
- Horticultural products: rice, maize, taro , fresh vegetables, tubers and fruits, 
forestry products such as timbers, oilseed/oil-bearing plants. 
- Animal husbandry products: Poultry, cattle, poultry eggs, farmed 
aquacultural products. 
- Duration: since 6 September 2000. 
b. Cooperatives: 
- Cooperatives, cooperative associations, Pe ople’s credit funds (hereunder referred as 
cooperatives) whose incomes are accrued from farm horticulture, animal husbandry 
and aquacultural cultivation activities are not subject to corporate income tax liability; 
- Cooperatives providing direct technical services for agriculture, forestry, fishery 
production and salt production such as: water conservancy, soil working, goods 
storage, animal and plant protection, ma nufacture and reparation of salt-producing 
tools, farming tools, fishing tools, irrigation services, etc. shall be exempt from 
corporate income tax payable for the income attributable to these activities; 
- Cooperatives in rural areas which provide electricity to farmer households, 
cooperatives which provide simple load/unload services are exempt from corporate 
income tax for the first 2 years from the date when the taxable incomes accruing from 
those activities are made; 
- Cooperatives in rural, mountainous, island areas which provide direct services for 
agriculture, forestry, fishery production and salt production, if renting the State’s land 
to establish offices or production units, are exempt from land rental for the first 5 
years from the date of issuance of Business Registration Certificate in accordance 
with the Law on Cooperatives; Cooperatives other than the afore-mentioned 
cooperatives which have been issued Business Registration Certificate in accordance 
with the Law on Cooperatives and are land- renting entities in accordance with land 
legislation are entitled to a 50% reduction of land rental for the first 2 years from the 
date of issuance of Business Registration Certificate in accordance with the Law on 
Cooperatives; 
- Duration: since 1 January 1999. 
c. Reduction, exemption of agricultural land use tax 
- Agricultural land use tax shall be exempted for: 
- Barren hills and mountains used for agri culture, forestry production, land for 
growing prevention forests and special-purpose forests; 
- Reclaimed land used for growing annual crops (for a duration of 5 years); 
- Reclaimed land in mountainous areas, marshes and transgressed areas to the 
sea used for growing annual crops (for a duration of 7 years);  WT/ACC/VNM/13/Add.1 
 Page 3 
 
 
  - Reclaimed land used for growing perennial plants (for the whole time of 
capital construction and a further 3-year duration from the time of first 
harvest); 
- Reclaimed land in mountainous areas, marshes and transgressed areas to the 
sea used for growing perennial plants  (for the entire period of capital 
construction and a further 6-year dura tion from the time of first harvest); 
- Land for regrowing perennial plants, land converted to growing perennial 
plants and fruit trees from annual crop  growing (for the entire period of 
capital construction and a further 3-year duration from the time of first 
harvest); 
- Land reclaimed by the State-allocated fund in mountainous areas, marshes 
and transgressed areas to the sea used for growing annual crops (for a 
duration of 3 years); in other areas used for growing annual crops (for a 
duration of 2 years); 
- Land reclaimed by the State-allocated  fund used for growing or regrowing 
perennial plants, except for timber (for the entire period of capital construction and a further 1-year duration); in mountainous areas, marshes 
and transgressed areas to the sea used for growing perennial plants (for  the 
entire period of capital construction and a further 2-year duration); 
- Reclaimed land used for growing perennial pl ants with only one harvesting crop per 
year is subject to agricultural land use ta x of 4% of the harvesting output value only 
from the time of first harvest; 
- Households  moving to new economic areas to reclaim land for agricultural 
production are exempt from agricultural land use tax for further 2 years in addition to 
the respective duration as specif ied above in specific relevant cases. If the allocated 
land is being cultivated for agricultural pr oduction, they are exempt from agricultural 
land use tax for 3 years from the date of receiving the allocated land in case of using 
that land for growing annual crops and for the entire period of capital construction, 
and a further 5-8 year duration from the time of  first harvest in case of using that land 
for growing perennial plants. 
- Households that are subject to agricultural  land use tax liability are entitled to tax 
reduction or exemption per crop in case of  crop damages by natural calamities or war 
as follows: 
- Damage level of 10% to less than 20%: tax reduction corresponding to the 
damage level; 
- Damage level of 20% to less than 30%: 60% tax reduction; 
- Damage level of 30% to less than 40%: 80% tax reduction; 
- Damage level of 40% or more: 100% tax exemption. 
6. Subsidy per unit, or in case where this is  not possible, the total amount or the annual 
amount budgeted for the subsidy 
 Data not available. 
7.  Duration of the subsidy and/or any other time-limit attached to it 
 Refer to Section 5 above for specific measures. WT/ACC/VNM/13/Add.1 
Page 4  
 
8.  Statistic data permitting an assessment of the trade effects of the subsidy 
 Data not available.  WT/ACC/VNM/13/Add.1 
 Page 5 
 
 
  II. IMPORT TARIFF RATES CONTINGENT UPON LOCALISATION RATIOS WITH 
RESPECT TO PRODUCTS AND PARTS OF MECHANICAL-ELECTRIC-
ELECTRONIC INDUSTRIES  
1.  Title of the subsidy program  Import tariff rates contingent upon localisation ratios with resp ect to products and parts of 
mechanical-electric-electronic industries. 
2.  Policy objectives and/or purposes of the subsidy 
 To encourage enterprises to invest in domest ic production, manufacture of components, spare 
parts, accessories and prod ucts as import substitutes. 
3. Background and authority for the subsidy  
a. Background  
- Inter-Ministerial Circular No.176/1998/TTLT-BTC-BCN-TCHQ dated 25/12/1998 of 
Ministry of Finance, Ministry of Industry and General Department of Customs 
guiding the implementation of tariff polic y contingent upon localisation ratios with 
respect to products and parts of mechanical-electric-electronic industries; 
- Inter-Ministerial Circular No.120/2000/TTLT-BTC-BCN-TCHQ dated 25/12/2000 of 
Ministry of Finance, Ministry of Industry and General Department of Customs on 
supplements of and amendments to tariff policy contingent upon localisation ratios 
with respect to products and parts of mechanical-electric-electronic industries 
stipulated in Inter-Ministerial No.176/1998/TTLT-BTC-BCN-TCHQ dated 
25/12/1998 of Ministry of Finance, Ministry of Industry and General Department of Customs; 
- Decision No.1944/1998/QD/BTC dated 25/12/1998 of Minister of Finance on 
promulgating regulations on import tariff ra tes contingent upon localisation ratios 
with respect to products and parts of mech anical, electric and electronic industries; 
- Decision No.71/1999/QD-BTC dated 6/7/1999 of Minister of Finance on modifying 
Article 3 of Decision No.1944/1998/QD/BTC dated 25/12/1998 of Minister of 
Finance; 
- Circular No.01/1999/TT-BCN dated 12/3/1999 guiding registration to be certified the 
conditions for applying import tariff conti ngent upon localisatio n ratios with respect 
to products of mechanical-e lectric-electronic industries; 
- Decision No.159/2000/QD-BTC  dated 26/9/2000 on removing import tariff rates 
applied to CKD, IKD components of cer tain products and parts of mechanical-
electric-electronic industries. 
b. Authority  
- Ministry of Finance; 
- Ministry of Industry;  
- General Department of Customs. 
4. Form of the subsidy 
 Preferential import tariff rates.  WT/ACC/VNM/13/Add.1 
Page 6  
 
5. To whom and how the subsidy is provided 
- Applicability: Vietnamese and foreign-invested enterprises operating in production, 
assembly of complete products and/or parts of these complete products of 
mechanical-electric-electronic industries, whic h are subject to MFN import tariff rates 
of 30% or above, shall be subject to MFN import tariff rates contingent upon 
localisation ratios. 
- Conditions to be met by applicant enterp rise for being applied MFN import tariff 
rates contingent upon localisation ratios: 
- Meeting the technical conditions and technology capacity to manufacture 
products in accordance with guidelines issued by Ministry of Industry; 
- Having a registration document of implementing localisation program in 
production of complete products and part s, which is certified by Ministry of 
Industry; 
- Having documents certifying the legitimate use of industrial properties issued 
by the competent authorities with respect  to the product which is registered 
for applying tariff policy cont ingent upon localisation ratios; 
- Directly importing assembling kits, comp onents, spare parts, accessories and 
materials for its own production; 
- Making payments for the full value of its import consignments via banks; 
- Using deductive method in paying VAT. 
- MFN import tariff rates contingent upon lo calisation ratios with respect to products 
and parts of mechanical-electric-electronic industries are as follows: 
a.  Motorcycles and parts of automobiles and motorcycles: 
i)  Motorcycles (MFN import tariff rate applie d to complete imported motorcycles is 60%): 
Achieved localisation ratio (%) MFN import tariff rates 
contingent upon localisation ratios (%) 
1.  Above 0 and up to 20 
2. Above 20 and up to 30  
3. Above 30 and up to 40 4. Above 40 and up to 50 
5. Above 50 and up to 60 
6. Above 60 60 
50 
30 15 
10 
5 
ii)  Parts of automobiles and motorcycles: 
MFN import tariff rates 
contingent upon localisation ratios (%) 
Achieved localisation ratio 
(%) With respect to 
parts which are 
subject to MFN 
import tariff rate 
of 30% With respect to 
parts which are 
subject to MFN 
import tariff rate 
of 40% With respect to 
parts which are 
subject to MFN 
import tariff rate 
of 50% With respect to 
parts which are 
subject to MFN 
import tariff rate 
of 60% 
1. Above 0 to 15 
2. Above 15 to 30 
3. Above 30 to 40 4. Above 40 to 50 
5. Above 50 20 
15 
10 
5 
3 20 
15 
10 
5 
3 30 
20 
10 
5 
3 40 
20 
10 
5 
3  WT/ACC/VNM/13/Add.1 
 Page 7 
 
 
  b.  Electronic complete products and parts: 
i)  Electronic products: 
MFN import tariff rates contingent upon 
localisation ratios (%) 
Achieved localisation ratio 
(%) With respect to 
parts which are 
subject to MFN 
import tariff rate 
of 30% With respect to 
parts which are 
subject to MFN 
import tariff rate 
of 40% With respect to 
parts which are 
subject to MFN 
import tariff rate 
of 50% With respect to 
parts which are 
subject to MFN 
import tariff rate 
of 60% 
1. Above 0 to 20 
2. Above 20 to 35 
3. Above 35 to 50 4. Above 50 to 60 
5. Above 60 20 
15 
10 
5 
3 30 
20 
10 
5 
3 40 
30 
15 10 
3 40 
30 
15 10 
3 
ii)  Electronic parts: 
MFN import tariff rates contingent upon localisation ratios (%) 
Achieved localisation ratio 
(%) With respect to 
parts which are 
subject to MFN 
import tariff rate 
of 30% With respect to 
parts which are 
subject to MFN 
import tariff rate 
of 40% With respect to 
parts which are 
subject to MFN 
import tariff rate 
of 50% With respect to 
parts which are 
subject to MFN 
import tariff rate 
of 60% 
1. Above 0 to 15 
2. Above 15 to 30 
3. Above 30 to 40 4. Above 40 to 50 
5. Above 50 20 
15 
10 
5 
3 20 
15 
10 
5 
3 30 
20 
10 
5 
3 40 
20 
10 
5 
3 
c)  Mechanical-electric products and parts: 
i)  Mechanical-electric products: 
MFN import tariff rates contingent upon 
localisation ratios (%) 
Achieved localisation ratio 
(%) With respect to 
parts which are 
subject to MFN 
import tariff rate 
of 30% With respect to 
parts which are 
subject to MFN 
import tariff rate 
of 40% With respect to 
parts which are 
subject to MFN 
import tariff rate 
of 50% With respect to 
parts which are 
subject to MFN 
import tariff rate 
of 60% 
1. Above 0 to 20 
2. Above 20 to 35 3. Above 35 to 50 
4. Above 50 to 60 
5. Above 60 20 
15 10 
5 
3 30 
20 10 
5 
3 40 
30 20 
10 
3 50 
40 20 
10 
3 WT/ACC/VNM/13/Add.1 
Page 8  
 
ii)  Mechanical-electric parts: 
MFN import tariff rates contingent upon localisation ratios (%) 
Achieved localisation ratio 
(%) With respect to 
parts which are 
subject to MFN 
import tariff rate 
of 30% With respect to 
parts which are 
subject to MFN 
import tariff rate 
of 40% With respect to 
parts which are 
subject to MFN 
import tariff rate 
of 50% With respect to 
parts which are 
subject to MFN 
import tariff rate 
of 60% 
1. Above 0 to 15 
2. Above 15 to 30 3. Above 30 to 40 4. Above 40 to 50 
5. Above 50 20 
15 10 
5 
3 20 
15 10 
5 
3 30 
20 10 
5 
3 40 
20 10 
5 
3 
6. Subsidy per unit, or in case where this is not possible, the total amount or the annual 
amount   budgeted for the subsidy 
 Data not available. 
7.  Duration of the subsidy and/or an y other time-limit attached to it  
 From 1 January 1999 -  
8.  Statistic data permitting an assessment of the trade effects of the subsidy 
 Data not available.  WT/ACC/VNM/13/Add.1 
 Page 9 
 
 
  III. INVESTMENT INCENTIVES APPLIE D TO VIETNAMESE ENTERPRISES’ 
LABOUR-INTENSIVE PROJECTS  
1. Title of the subsidy program 
 Support for Vietnamese enterprises’ labour-intensive investment projects. 
2. Policy objectives and/or purposes of the subsidy 
 To encourage investment projects in domes tic labour-intensive industries primarily for 
generating   employment around the location of projects in order to improve income and living 
conditions of labourers. 
3. Background and authority for the subsidy  
a. Background  
- Law on Domestic Investme nt Promotion (amended)  No.03/1998/QH10 dated 20 
May 1998;  
- Decree No.51/1999/ND-CP of the Government dated 8 July 1999 providing details to 
implement the Law on Domestic Investment Promotion (amended)  
No.03/1998/QH10 dated 20 May 1998. 
b. Authority 
- Ministry of Finance; 
- Ministry of Planning and Investment. 
4. Form of the subsidy 
- Exemption, reduction of land rental; 
- Exemption, reduction of land use tax; 
- Longer periods of corporate income tax exemption and reduction. 
5. To whom and how the subsidy is provided 
- Investment projects in manufacturing and/or trading sectors that are not prohibited by 
laws will be eligible for labour-intensive  investment incentives if they annually 
employ at least an average number of: 
- 100 employees in those cities falling into Category 1 and Category 2; 
- 20 employees in socially and economically difficult areas or areas under socially and 
economically harsh conditions; 
- 50 employees in areas other than above cities and areas. 
a. Exemption, reduction of land rental: 
- Investment projects meeting the labour-int ensive criteria mentioned above are entitled 
to an exemption of land rental for 3 years from the time the land-renting contract is signed;  
- Investment projects in sectors subject to investment incentives and satisfying at the 
same time the labour-intensive criteria (i) and (iii) above are entitled to an exemption 
of land rental for 6 years from the time  the land-renting contract is signed; WT/ACC/VNM/13/Add.1 
Page 10  
 
- Investment projects in sectors subject to investment incentives in socially and 
economically difficult areas, which annua lly employ 20 employees on average, are 
entitled to an exemption of land rental for 13  years from the time the land-renting 
contract is signed. 
b. Exemption, reduction of land use tax: 
- Investment projects in sectors subject to investment incentives in socially and 
economically difficult areas, which annua lly employ 20 employees on average, are 
entitled to an exemption of land use tax for 15  years from the time of land allocation. 
c. Longer periods of corporate income tax exemption and reduction applied to investment 
projects in which new production or business establishments are formed: 
- Investment projects satisfying the labour -intensive criteria mentioned above are 
entitled to a corporate income tax exempt ion for 2 years and a 50% reduction of 
payable corporate income tax for the 2 subsequent years; 
- Investment projects in sectors subject to investment incentives and satisfying at the 
same time the labour-intensive criteria me ntioned above are entitled to a corporate 
income tax exemption for 2 years and a 50% reduction of payable corporate income 
tax for the 4 subsequent years; 
- Investment projects in sectors subject to investment incentives in socially and 
economically difficult areas, which annua lly employ 20 employees on average, are 
entitled to a corporate income tax exempt ion for 3 years and a 50% reduction of 
payable corporate income tax for the 7 subsequent years; 
- Investment projects in sectors subject to in vestment incentives in areas under socially 
and economically harsh conditions, which annually employ 20 employees on average, 
are entitled to a corporate income tax exem ption for 4 years and a 50% reduction of 
payable corporate income tax for the 9 subsequent years. 
6. Subsidy per unit, or in case where this is  not possible, the total amount or the annual 
amount budgeted for the subsidy 
 Data not available. 
7.  Duration of the subsidy and/or any other time-limit attached to it 
 From 1 January 1999 - 
8.  Statistic data permitting an assessment of the trade effects of the subsidy 
 Data not available.  WT/ACC/VNM/13/Add.1 
 Page 11 
 
 
  IV. SUPPORT FOR ENTERPRISES EMPLOY ING A GREAT NUMBER OF FEMALE 
EMPLOYEES  
1. Title of the subsidy program 
 Support for enterprises employing a great number of female employees. 
2. Policy objectives and/or purposes of the subsidy 
 To relieve the financial burden for enterprises employing a great number of  female 
employees, whereby to help to protect the repr oductive health and solve female-related social 
problems. 
3. Background and authority for the subsidy  
a. Background 
- Law on Corporate Income Tax No.03/1997/QH9 dated 10 May 1997;  
- Decree No.30/1998/ND-CP of the Government dated 13 May 1998 providing details 
to implement the Law on Corporate Income Tax; 
- Circular No.99/1998/TT-BTC of Ministry of Finance dated 14 July 1998 providing 
details to implement the Decree No.30/19 98/ND-CP of the Government dated 13 
May 1998 providing details to implement the Law on Corporate Income Tax. 
b. Authority 
- Ministry of Finance; 
- Ministry of Labour, Invalids and Social Welfare. 
4. Form of the subsidy 
- Reduction of corporate income tax; 
- Deduction of expenses spent for female employees from taxable income resulting 
from production, trading and services activities. 
5. To whom and how the subsidy is provided 
- Vietnamese businesses and foreign-invested enterprises engaged in production, 
construction, transportation sectors are regarded as employer of a great number of 
female employees if satisfying one of the following conditions: 
- Employing on a regular basis from 10 to 100 female employees, who then, in 
aggregate, constitute at least 50% of the enterprise’s permanent workforce; 
- Employing on a regular basis more than 100 female employees, who then, in 
aggregate, constitute at least 30% of the enterprise’s permanent workforce. 
a. Reduction of corporate income tax: 
- Vietnamese businesses and foreign-invested enterprises engaged in production, 
construction, transportation sectors, which are employer of a great number of female 
employees, are entitled to a reduction of co rporate income tax equivalent to the 
additional costs spent only on female employees. The extent of reduction is 
commensurate with the actual spending for female employees as specified below: WT/ACC/VNM/13/Add.1 
Page 12  
 
- Additional spending on female employee retraining, if their previous jobs are 
no longer apt to the enterprise’s deve lopment plan. This additional spending 
includes: tuition fees (if any) plus the salary/wage differentials according to 
different ranks of employment (to assure that the female employee attending 
retraining programs earn 100% of her salary/wage); 
- Salary and salary allowance (if any) spent on female teachers at 
kindergartens, and pre-school estab lishments under direct organisation and 
management of the enterprise. The number  of these eligible female teachers 
is specified in regulations of educational and training system; 
- Expenses for organising an additional ch eck-up in the year (in addition to the 
number of normally prescribed check-ups), primarily for examining occupational diseases, chronic diseases or gynecological diseases that are 
usually caught by female employees; 
- Expenses for one additiona l payment for improving female employees’ health 
after her first  or second baby delivery. The payment should not exceed 
300,000 VND with respect to enterprises located in urban areas and 500,000 VND with respect to enterprises located in remote, mountainous or island 
areas. The purpose of this payment is to help the mother employees to 
partially overcome birth-related difficulties; 
- During the breast-feeding period, female employees can be paid overtime 
allowances in accordance with existing regulations if they accept to stay at 
work to complete the work and therefore, cannot return home to feed their babies. 
- The employers shall be eligible for a corp orate income tax reduction commensurate 
with the above listed expenses for the sake of female employees if these expenses are 
accompanied by valid documents signed by the employee recipients to prove the 
actual spending. 
b. Deduction of expenses spent for female employees from taxable income resulting from 
production, trading and services activities. 
 Data not available. 
6. Subsidy per unit, or in case where this is  not possible, the total amount or the annual 
amount budgeted for the subsidy 
 Data not available. 
7.  Duration of the subsidy and/or any other time-limit attached to it 
 From 1 January 1999 - 
8.  Statistic data permitting an assessment of the trade effects of the subsidy 
 Data not available.  WT/ACC/VNM/13/Add.1 
 Page 13 
 
 
  V. DEVELOPMENT ASSISTANCE FOR SOME PRODUCTION PROJECTS OF 
MECHANICAL INDUSTRY 
1. Title of the subsidy program 
 Development assistance for some production projects of mechanical industry. 
2. Policy objectives and/or purposes of the subsidy 
 To provide development assistance for some production projects of mechanical industry to 
meet the demand for equipment and machinery of agriculture, agricultural processing production, 
bicycle, electric fans manufactur ing and maritime transportation. 
3. Background and authority for the subsidy  
a. Background  
- Decision No.29/1998/QD-TTg of the Prime Minister dated 9 February 1998 on 
development assistance solutions for some production projects of mechanical 
industry;  
- Circular No.71/1998/TT-BTC of Ministry of Finance dated 23/5/1998 on the 
implementation of profit tax exemption and reduction in accordance with Decision 
No.29/1998/QD-TTg; 
- Decision No.178/1998/QD-TTg of the Prime Minister dated 19 September 1998 on 
interest rate support for certain export products.  
b. Authority  
- Ministry of Industry; 
- Ministry of Finance; 
- Ministry of Transport; 
- Ministry of Fishery; 
- Ministry of Planning and Investment; 
- State Bank of Viet Nam. 
4. Form of the subsidy 
- Preferential credit terms; 
- Exemption, reduction of profit tax2; 
- Exemption of export duties; 
- Exemption of import duties on components, accessories, materials and incomplete 
equipment; 
- Interest rate support. 
                                                      
2 Profit tax has been replaced by corporate income tax (pursuant to the Law on Corporate Income Tax) 
since 1 January 1999. Preferential treatment with respect to exemption and reduction of profit tax which has still been valid in accordance to the Law on Profit tax shall be entitled to exemption and reduction  of corporate 
income tax for the remaining eligible period. The extent of exemption and reduction of corporate income tax is 
specified in Article 5, 6, 7, 8, 9 and 10 of the Law on Corporate Income Tax and its implementation documents. 
 WT/ACC/VNM/13/Add.1 
Page 14  
 
5. To whom and how the subsidy is provided 
- Investment projects in mechanical indust ry to manufacture bicycles, electric fans, 
small-size power engines of from 6 to 15 CV and to build maritime ships are eligible 
recipients. 
a. Preferential credit terms: 
- The State’s mid-term and long-term preferential credits as from 1998 are available for 
investment projects to manufacture th e above mechanical products under the 
following conditions: 
- Credits are provided by the National Investment Assistance Fund
3 at preferential 
interest rate of 0.7%/month4. The value and progress of disbursement of these 
preferential credits are assured to be in  accordance with the approved project; 
- Credit duration shall not be longer than 10 years, of which the construction time plus 
a production cycle (grace period) shall be free of interest; 
- Borrowing enterprises shall not have to us e their assets as collateral for loans. 
However, they are not allowed to transfer th eir assets before full repayment of their 
debts; 
b. Exemption, reduction of profit tax: 
- Eligible recipients are entitled to a profit  tax exemption for the first 2 years from the 
time when the taxable profit begins to be earned and a 50% reduction for the 2 
subsequent years. 
c. Exemption of export duties: 
- Mechanical products under this program sh all be entitled to export duty exemption. 
d. Exemption of import duties on components, accessories, materials and parts of equipment: 
- Eligible recipients are entitled to import duty exemption for components, accessories 
and parts of equipment which have not yet been produced domestically or which have 
been produced domestically but of unsatisfactory quality.  
e. Interest rate support: 
- Commercial banks provide interest rate support to enterprises manufacturing or 
trading such mechanical products for export as diesel engines, electric engines, 
bicycles, electric fans in form of chargi ng interest rate of 0.2% lower than the 
prevailing interest rate normally charged by these banks on other export credits. This 
form of support was in force from 19/9/1998 to 12/10/1999. 
6. Subsidy per unit, or in case where this is  not possible, the total amount or the annual 
amount budgeted for the subsidy 
 Data not available. 
                                                      
3 The National Investment Assistance Fund has been replaced by the Development Assistance Fund 
(pursuant to the Government’s Decree No.50/1999/ND-CP dated 8 July 1999 on the organisation and operation 
of the Development Assistance Fund) since 23 July 1999. 
 
4 The prevailing market interest rate at the same moment was 1.1%/month.  WT/ACC/VNM/13/Add.1 
 Page 15 
 
 
  7.  Duration of the subsidy and/or any other time-limit attached to it 
 From 24 February 1998 - 
8.  Statistic data permitting an assessment of the trade effects of the subsidy 
  Data not available. WT/ACC/VNM/13/Add.1 
Page 16  
 
VI. INVESTMENT INCENTIVES OFFERED TO ENTERPRISES WITH FOREIGN 
OWNED CAPITAL WHICH PRODUCE GOODS FOR EXPORT 
1. Title of the subsidy program 
 Investment incentives offered to en terprises with foreign owned capital
5 which produce goods 
for export. 
2. Policy objectives and/or purposes of the subsidy 
 To encourage foreign investment  in export-producing sectors. 
3. Background and authority for the subsidy 
a. Background  
- Law on Foreign Investment in Viet Nam dated 12 November 1996; 
- Law on supplements of and amendments to some Articles of the Law on Foreign 
Investment in Viet Nam (Law No.18/2000/QH10) dated 9 June 2000; 
- Decree No.24/2000/ND-CP of the Government dated 31 July 2000 providing detailed 
regulations on the implementation of the Law on Foreign Investment in Viet Nam; 
- Law on Corporate Income Tax No.03/1997/QH9 dated 10 May 1997;  
- Decree No.30/1998/ND-CP of the Government dated 13 May 1998 providing details 
to implement the Law on Corporate Income Tax; 
- Circular No.99/1998/TT-BTC of Ministry of Finance dated 14 July 1998 providing 
details to implement the Decree No.30/19 98/ND-CP of the Government dated 13 
May 1998 providing details to implement the Law on Corporate Income Tax. 
b. Authority  
- Ministry of Finance; 
- Ministry of Planning and Investment. 
4. Form of the subsidy 
- Preferential corporate income tax rates6; 
- Exemption, reduction of corporate income tax; 
- Exemption of import duties. 
5. To whom and how the subsidy is provided 
a. Preferential corporate income tax rates; Ex emption, reduction of corporate income tax: 
- A corporate income tax rate of 15% for a period of 12 years from the time when the 
project commences its production or business activities and an exemption of 
corporate income tax payable for 2 years commencing from the time when its operations start to earn profits and a 50% reduction for the 3 subsequent years shall 
be applied to investment projects which satisfy one of the following criteria:  
                                                     
 
5 Enterprises with foreign owned capital include joint venture enterprises and enterprises with one 
hundred (100) per cent foreign owned capital (Article 2.6, Law on Foreign Investment  in Viet Nam dated 12 
November 1996) 
6 Normal corporate income tax rate generally applied to enterprises with foreign owned capital and 
foreign parties to business cooperation contracts is 25%. 
  WT/ACC/VNM/13/Add.1 
 Page 17 
 
 
  - Producing, processing for export at least fifty (50) per cent of products; 
- Producing, processing for export at least thirty (30) per cent of products and 
using significant domestic raw materials and materials (with a value of at 
least thirty (30) per cent of total production costs); 
- Producing high-quality raw material s for manufacturing footwear and 
garments for export; 
- Producing high-quality packages for exported products. 
- A corporate income tax rate of 10% through out the duration of investment project and 
an exemption of corporate income tax payable for 4 years commencing from the time 
when its operations start to earn profits and a 50% reduction for the 4 subsequent 
years shall be applied to investment proj ects which satisfy one of the following 
criteria: 
- Producing, processing for export at least eighty (80) per cent of products; 
- Processing agricultural, forestry (except for wood) and aquacultural products 
from domestic material sources for export of at least fifty (50) per cent of products; 
- Particularly with regard to enterprises investing in Industrial Zones or Export 
Processing Zones: 
- If their investment project exports more than 80% of products: it is entitled to 
a corporate income tax rate of 10% throughout the duration of investment 
project and an exemption of corporate income tax payable for 4 years 
commencing from the time when its oper ations start to earn profits and a 50% 
reduction for the 4 subsequent years; 
- If their investment project exports from 50% to 80% of products: it is entitled 
to a corporate income tax rate of 15% throughout the duration of investment 
project and an exemption of corporate income tax payable for 2 years commencing from the time when its oper ations start to earn profits and a 50% 
reduction for the 3 subsequent years; 
- If their investment project exports less than 50% of products: it is entitled to a 
corporate income tax rate of 15% throughout the duration of investment 
project and an exemption of corporate income tax payable for 2 years 
commencing from the time when its operations start to earn profits. 
b. Exemption of import duties: 
- Investment projects in producing, processing fo r export at least eighty (80) per cent of 
products; processing agricultural, forestry (except for wood) and aquacultural 
products from domestic material sources fo r export of at least fifty (50) per cent of 
products shall be entitled to an exemptio n from import duties in respect of raw 
materials for production for five (5) years from the time when production 
commences.  
6. Subsidy per unit, or in case where this is  not possible, the total amount or the annual 
amount budgeted for the subsidy 
 Data not available. WT/ACC/VNM/13/Add.1 
Page 18  
 
7.  Duration of the subsidy and/or any other time-limit attached to it 
- 1 January 1999 – 31 July 2000: In conformity with the Notification on Industrial 
Subsidies of Viet Nam for the period of 1996-1998 (document WT/ACC/VNM/13); 
- From 1 August 2000: In conform ity with this Notification. 
8.  Statistic data permitting an assessment of the trade effects of the subsidy 
 Data not available.  WT/ACC/VNM/13/Add.1 
 Page 19 
 
 
  VII. INVESTMENT INCENTIVES OFFERED TO VIETNAMESE ENTERPRISES 
WHICH HAVE PROJECTS TO PRODUCE GOODS FOR EXPORT 
1. Title of the subsidy program 
 Investment incentives offered to Vietnamese enterprises which have projects to produce 
goods for export. 
2. Policy objectives and/ or purposes of the subsidy 
 To encourage Vietnamese enterprises to produce and trade goods and services for export. 
3. Background and authority for the subsidy 
a. Background 
- Law on Domestic Investme nt Promotion (amended)  No.03/1998/QH10 dated 20 
May 1998;  
- Decree No.51/1999/ND-CP of the Government dated 8 July 1999 providing details to 
implement the Law on Domestic Investment Promotion (amended)  
No.03/1998/QH10 dated 20 May 1998; 
- Law on Corporate Income Tax No.03/1997/QH9 dated 10 May 1997;  
- Decree No.30/1998/ND-CP of the Government dated 13 May 1998 providing details 
to implement the Law on Corporate Income Tax; 
- Circular No.99/1998/TT-BTC of Ministry of Finance dated 14 July 1998 providing 
details to implement the Decree No.30/19 98/ND-CP of the Government dated 13 
May 1998 providing details to implement the Law on Corporate Income Tax. 
b. Authority 
- Ministry of Finance; 
- Ministry of Planning and Investment. 
4. Form of the subsidy 
- Exemption, reduction of land use payment; 
- Exemption, reduction of land rental; 
- Exemption, reduction of land use tax; 
- Preferential corporate income tax rates; 
- Longer periods of corporate income tax exemption and reduction; 
- Exemption, reduction of corporate income tax payable for the income attributable to 
expansion and/or enhancement investments; 
- Exemption of supplementary corporate income tax; 
- Exemption of import duties for equipment, machinery forming the enterprise’s fixed 
assets; 
- Additional preferential treatment with respect to corporate income tax. 
5. To whom and how the subsidy is provided 
- Eligible recipients of the following invest ment incentives are domestic investors in 
producing, trading goods, services for export whose value of exported goods and 
services exceeds 30% of the value of their total produc tion and trade activities in a 
fiscal year (pursuant to the Law on Domestic Investment Promotion).  WT/ACC/VNM/13/Add.1 
Page 20  
 
a. Exemption, reduction of land use payment: 
- Investors who are allocated land by the State to conduct their production, trading 
activities shall be entitled to a 50% reduction of land use payment. 
g. Exemption, reduction of land rental: 
- Investors are entitled to an exemption of land rental for 3 years from the date of 
signing land-renting contract; 
- Investors in production projects for export in socially and economically difficult areas 
which annually employ 20 employees on average, are entitled to an exemption of 
land rental for 13 years from the date of signing land-renting contract. 
c. Exemption, reduction of land use tax: 
- Investors implementing production projects for export in socially and economically 
difficult areas which annually employ at least an average number of 20 employees are 
entitled to an exemption of land use tax for 15 years from the time of land allocation.  
d. Preferential corporate income tax rates: 
- Eligible recipients are entitled to pref erential corporate income tax rate of 25%
7. 
e. Longer periods of corporate income tax exemption and reduction applied to investment 
projects in which new production or  business establishments are formed: 
- Eligible recipients are entitled to an exem ption of corporate income tax for 2 years 
from the first profit making year and a 50% reduction of payable corporate income 
tax for the 2 subsequent years. 
- Investors implementing production projects for export in socially and economically 
difficult areas which annually employ 20 employees on average, are entitled to an 
exemption of corporate income tax for 3 years from the first profit making year and a 
50% reduction of payable corporate income tax for the 7 subsequent years. 
- Investors implementing production projects for export in areas under socially and 
economically harsh conditions which annually employ 20 employees on average, are entitled to an exemption of corporate inco me tax for 4 years from the first profit 
making year and a 50% reduction of payable corporate income tax for the 9 
subsequent years. 
f. Exemption, reduction of corporate income  tax payable for the income attributable to 
expansion and/or enhancement investments: 
- Eligible recipients are entitled to an exempt ion of corporate income tax for 1 year and 
a 50% reduction of payable corporate income tax for the 4 subsequent years. 
g. Exemption of supplementary corporate income tax: 
- Eligible recipients are exempted from su pplementary corporate income tax otherwise 
payable on the portion of income attributab le to objective advantages in accordance 
to relevant legislation
8.   
                                                      
7 Normal corporate income tax rate applied to Vietnamese enterprises is 32%. 
8 Refer to the Government’s Decree No.30/1998/ND-CP dated 13 May 1998 providing details to 
implement the Law on Corporate Income Tax for provisio ns related to supplementary corporate income tax.  WT/ACC/VNM/13/Add.1 
 Page 21 
 
 
  h. Exemption of import duties for equipment, ma chinery forming the enterprise’s fixed assets: 
- Eligible recipients are entitled to import duty exemption in respect of the following 
goods provided that they have not yet be en domestically produced or which have 
been domestically produced but of  unsatisfactory quality:  
- Specialized transportation means, m achinery and equipment (included in 
technological lines) imported forming ente rprises’ fixed assets or to extend 
the investment project, to renovate technology; 
- Specialized transportation means us ed to transport workers.    
i. Additional preferential treatment with respect to corporate income tax: 
- In addition to the above men tioned preferential treatment with respect to corporate 
income tax, investors in production of and trading in exports are entitled to the following incentives with respect to corporate income tax: 
- A 50% reduction of corporate income ta x payable for the portion of income 
earned in the following cases: 
- Export income earned in the first years in the form of direct exportation; 
- Export of new products with economic-te chnical, application characteristics  
different from those of the products previously exported by the enterprise; 
- Export to a new country’s or territory’s markets different from the 
enterprise’s traditional markets. 
- A 50% reduction of corporate income tax payable for the increased portion of export 
income in a fiscal year as a result of export turnover of that year being greater than that of the previous year; 
- A 20% reduction of corporate income tax payable for the portion of export income 
earned in a fiscal year in the following cases:  
- Export turnover accounts for more than 50% of total turnover; 
- Export markets are maintained in terms of stable export quantity or export 
value during the previous 3 consecutive years.  
6. Subsidy per unit, or in case where this is  not possible, the total amount or the annual 
amount budgeted for the subsidy 
 Data not available. 
7.  Duration of the subsidy and/or any other time-limit attached to it 
 From 1 January 1999 – 
8.  Statistic data permitting an assessment of the trade effects of the subsidy 
 Data not available. WT/ACC/VNM/13/Add.1 
Page 22  
 
VIII. INVESTMENT INCENTIVES OFFERED TO ENTERPRISES WITH FOREIGN 
OWNED CAPITAL WHICH OPERATE IN CERTAIN BUSINESS FIELDS AND SECTORS
9 
1. Title of the subsidy program 
 Investment incentives offered to enterprise s with foreign owned ca pital which operate in 
certain business fields and sectors. 
2. Policy objectives and/or purposes of the subsidy 
To encourage and promote foreign investment in  certain business fields and sectors for the 
industrialization, modernization and national economi c development on the basis of full and effective 
exploitation and utilization of the resources. 
3. Background and authority for the subsidy 
a. Background 
- Law on Foreign Investment in Viet Nam dated 12 November 1996; 
- Law on supplements of and amendments to some Articles of the Law on Foreign 
Investment in Viet Nam (Law No.18/2000/QH10) dated 9 June 2000; 
- Decree No.24/2000/ND-CP of the Government dated 31 July 2000 providing detailed 
regulations on the implementation of the Law on Foreign Investment in Viet Nam; 
- Law on Corporate Income Tax No.03/1997/QH9 dated 10 May 1997;  
- Decree No.30/1998/ND-CP of the Government dated 13 May 1998 providing details 
to implement the Law on Corporate Income Tax; 
- Circular No.99/1998/TT-BTC of Ministry of Finance dated 14 July 1998 providing 
details to implement the Decree No.30/19 98/ND-CP of the Government dated 13 
May 1998 providing details to implement the Law on Corporate Income Tax. 
b. Authority 
- Ministry of Finance; 
- Ministry of Planning and Investment. 
4. Form of the subsidy 
- Preferential corporate income tax rates10; 
- Exemption, reduction of corporate income tax; 
- Exemption of import duties. 
5. To whom and how the subsidy is provided a. Preferential corporate income tax rates, redu ction and exemption of corporate income tax: 
- Industrial zone enterprises engaged in the service sector shall enjoy the corporate 
income tax rate of 20% for a period of ten (10) years from the time when the project 
                                                     
 
9 Annex 1 provides the List of foreign-invested projects eligible for investment incentives, Annex 2 
provides the List of foreign-invested projects eligible for special investment incentives (issued together with 
Decree No.24/2000/ND-CP dated 31 July 2000).  
10 Normal corporate income tax rate generally applied to enterprises with foreign owned capital and 
foreign parties to business cooperation contracts is 25%. 
  WT/ACC/VNM/13/Add.1 
 Page 23 
 
 
  commences its production or business activ ities, be exempt from corporate income 
tax for one (1) year commencing from the time when their operations start to earn 
profits and be granted a fifty (50) percent reduction for the two (2) subsequent years;   
- Investment projects satisfying one of the following criteria shall be entitled to the 
corporate income tax rate of 15% for a pe riod of twelve (12) years from the time 
when the project commences its production or business activities, an exemption of 
corporate income tax for a period of two (2) years commencing from the time when 
operations start to earn profits and a fifty (50) percent reduction for the three (3) 
subsequent years:  
- Being included in the List of foreign-in vested projects eligible for investment 
incentives (except for those projects involving export which have been 
notified under the Program VI); 
- Service enterprises in export processing zones. 
- Investment projects satisfying one of the following criteria shall be entitled to the 
corporate income tax rate of 10% throughout the duration of investment project, an exemption of corporate income tax for a period of four (4) years commencing from the time when operations star t to earn profits and a fifty ( 50) percent reduction for the 
four (4) subsequent years:  
- Being included in the List of foreign-invested projects eligible for special 
investment incentives (except for those projects involving export which have 
been notified under the Program VI); 
- Enterprises engaged in infr astructure development of industrial zones, export 
processing zones or high-tech zones; export processing enterprises; 
- Being engaged in the fields of medical  examination and treatment, education 
and training, or sc ientific research.  
b. Exemption of import duties: 
- Projects included in the List of foreign- invested projects eligible for special 
investment incentives (except for those projects involving export which have been 
notified under the Program VI) are entitled to  an import duty exemption with respect 
to production materials for a period of five (5) years from the time when the project 
commences its production.  
6. Subsidy per unit, or in case where this is  not possible, the total amount or the annual 
amount budgeted for the subsidy 
 Data not available. 
7.  Duration of the subsidy and/or any other time-limit attached to it 
- 1 January 1999 – 31 July 2000: In conformity with the Notification on Industrial 
Subsidies of Viet Nam for the period of 1996-1998 (document WT/ACC/VNM/13); 
- From 1 August 2000: In conform ity with this Notification. 
8.  Statistic data permitting an assessment of the trade effects of the subsidy 
 Data not available. WT/ACC/VNM/13/Add.1 
Page 24  
 
IX. INVESTMENT INCENTIVES OFFERED TO VIETNAMESE ENTERPRISES 
WHICH OPERATE IN CERTAIN BUSINESS FIELDS AND SECTORS
11 
1. Title of the subsidy program 
 Investment incentives offered to Vietnamese enterprises which operate in certain business 
fields and sectors. 
2. Policy objectives and/or purposes of the subsidy 
To encourage Vietnamese investors in certain busi ness fields and sectors, which are of national 
development priority. 
3. Background and authority for the subsidy 
a. Background 
- Law on Domestic Investme nt Promotion (amended)  No.03/1998/QH10 dated 20 
May 1998;  
- Decree No.51/1999/ND-CP of the Government dated 8 July 1999 providing details to 
implement the Law on Domestic Investment Promotion (amended)  
No.03/1998/QH10 dated 20 May 1998; 
- Law on Corporate Income Tax No.03/1997/QH9 dated 10 May 1997;  
- Decree No.30/1998/ND-CP of the Government dated 13 May 1998 providing details 
to implement the Law on Corporate Income Tax; 
- Circular No.99/1998/TT-BTC of Ministry of Finance dated 14 July 1998 providing 
details to implement the Decree No.30/19 98/ND-CP of the Government dated 13 
May 1998 providing details to implement the Law on Corporate Income Tax. 
b. Authority 
- Ministry of Finance; 
- Ministry of Planning and Investment. 
4. Form of the subsidy 
- Exemption, reduction of land use payment; 
- Exemption, reduction of land rental; 
- Exemption, reduction of land use tax; 
- Preferential corporate income tax rates; 
- Longer periods of corporate income tax exemption and reduction; 
- Exemption, reduction of corporate income tax payable for the income attributable to 
expansion and/or enhancement investments; 
- Exemption of supplementary corporate income tax; 
- Exemption of import duties for equipment, machinery forming the enterprise’s fixed 
assets. 
                                                      
11 Annex 4 provides the List of business fields and sectors eligible for investment incentives (issued 
together with Decree No.51/1999/ND-CP dated 8 July 1999).  WT/ACC/VNM/13/Add.1 
 Page 25 
 
 
  5. To whom and how the subsidy is provided 
- Eligible recipients include domestic invest ors in certain business fields and sectors 
subject to investment incentives pursuant to the Law on Domestic Investment 
Promotion.  
a. Exemption, reduction of land use payment: 
- Investors who are allocated land by the State to conduct their production, business 
activities shall be entitled to a 50% reduction of land use payment. 
b. Exemption, reduction of land rental: 
- Investors are entitled to an exemption of land rental for 3 years from the date of 
signing land-renting contract; 
- Investors in the encouraged business fields in the socially and economically difficult 
areas who annually employ at least 20 employees on average, are entitled to an 
exemption of land rental for 13 years from the date of signing land-renting contract. 
c. Exemption, reduction of land use tax: 
- Investors in the encouraged business fields in the socially and economically difficult 
areas who annually employ at least 20 employees on average, are entitled to an exemption of land use tax for 15 years from the date of land allocation. 
- Investors who are allocated land by the State and are implementing investment 
projects in  infrastructure construction,  development of public transportation; 
development of education and training, heal th care, national cult ure shall be entitled 
to a 50% reduction of payable land use tax for 7 years from the date of land allocation;  
- Investors who are allocated land by the State and are implementing investment 
projects in afforestation and re-afforestatio n; planting of perennial trees on unused 
land, waste land or barren hills; virgin la nd reclamation; salt-production; aquaculture 
in unexploited water areas are entitled to an exemption of land use tax throughout the 
duration of the investment project.  
d. Preferential corporate income tax rates: 
- Eligible recipients are entitled to the cor porate income tax rate of twenty-five (25) 
percent.
12 
e. Longer periods of corporate income tax exemption and reduction: 
- Eligible recipients  are entitled to an ex emption of corporate income tax for two (2) 
years from the first profit-making year and a fifty (50) per cent reduction of corporate 
income tax payable for the two (2) subsequent years; 
- Investors in the encouraged business fields in the socially and economically difficult 
areas who annually employ at least 20 employees on average, are entitled to an 
exemption of corporate income tax for 3 years and a 50% reduction of corporate income tax payable for the 7 subsequent years; 
- Investors in the encouraged business fields in the socially and economically harsh 
areas who annually employ at least 20 employees on average, are entitled to an 
                                                     
 
12 The normal corporate income tax rate generally applied to Vietnamese enterprises is 32% WT/ACC/VNM/13/Add.1 
Page 26  
 
exemption of corporate income tax for 4 years and a 50% reduction of corporate 
income tax payable for the 9 subsequent years; 
f. Exemption, reduction of corporate income  tax payable for the income attributable to 
expansion and/or enhancement investments: 
- Investors implementing projects of expansion and/or enhancement investment are 
entitled to an exemption of corporate income  tax for one (1) year and a 50% reduction 
of corporate income tax payable for the incr eased portion of income attributable to 
this investment.  
g. Exemption of supplementary corporate income tax: 
- Eligible recipients are exempted from su pplementary corporate income tax otherwise 
payable on the portion of income attributab le to objective advantages in accordance 
to relevant legislation
13. 
h. Exemption of import duties for equipment, ma chinery forming the enterprise’s fixed assets: 
- Eligible recipients are entitled to import duty exemption in respect of the following 
goods which have not yet been domestically produced or which have been 
domestically produced but of  unsatisfactory quality:  
- Specialized transportation means, m achinery and equipment (included in 
technological lines) imported forming ente rprises’ fixed assets or to extend 
project investment size, to renovate technology; 
- Specialized transportation means us ed to transport workers.   
6. Subsidy per unit, or in case where this is  not possible, the total amount or the annual 
amount budgeted for the subsidy 
 Data not available. 
7.  Duration of the subsidy and/or any other time-limit attached to it 
 From 1 January 1999 – 
8.  Statistic data permitting an assessment of the trade effects of the subsidy 
 Data not available. 
                                                      
13 Refer to the Government’s Decree No.30/1998/ND-CP dated 13 May 1998 providing details to 
implement the Law on Corporate Income Tax for provisio ns related to supplementary corporate income tax.  WT/ACC/VNM/13/Add.1 
 Page 27 
 
 
  X. INVESTMENT INCENTIVES OFFERED TO ENTERPRISES WITH FOREIGN 
OWNED CAPITAL WHICH OPERATE IN CERTAIN AREAS14 
1. Title of the subsidy program 
 Investment incentives offered to enterprise s with foreign owned ca pital which operate in 
certain areas. 
2. Policy objectives and/or purposes of the subsidy 
 To encourage and promote foreign investment in certain areas of socio-economic 
disadvantages or socio-economic harsh conditions. 
3. Background and authority for the subsidy 
a. Background 
- Law on Foreign Investment in Viet Nam dated 12 November 1996; 
- Law on supplements of and amendments to some Articles of the Law on Foreign 
Investment in Viet Nam (Law No.18/2000/QH10) dated 9 June 2000; 
- Decree No.24/2000/ND-CP of the Government dated 31 July 2000 providing detailed 
regulations on the implementation of the Law on Foreign Investment in Viet Nam; 
- Law on Corporate Income Tax No.03/1997/QH9 dated 10 May 1997;  
- Decree No.30/1998/ND-CP of the Government dated 13 May 1998 providing details 
to implement the Law on Corporate Income Tax; 
- Circular No.99/1998/TT-BTC of Ministry of Finance dated 14 July 1998 providing 
details to implement the Decree No.30/19 98/ND-CP of the Government dated 13 
May 1998 providing details to implement the Law on Corporate Income Tax. 
b. Authority 
- Ministry of Finance; 
- Ministry of Planning and Investment. 
4. Form of the subsidy 
- Preferential corporate income tax rates15; 
- Exemption, reduction of corporate income tax; 
- Exemption of import duties; 
- Preferential remittance (withholding) tax rates. 
5. To whom and how the subsidy is provided 
a. Preferential corporate income tax rates, redu ction and exemption of corporate income tax: 
- Investment projects in socially and econo mically difficult areas are entitled to the 
corporate income tax of 15% for twelve (12) years from the time when the project commences its production or business activ ities, an exemption of  corporate income 
                                                     
 
14 Annex 3 provides the List of areas of socio-economic disadvantages and socio-economic harsh 
conditions (issued together with Decree No.24/2000/ND-CP dated 31 July 2000). 
15 Normal corporate income tax rate generally applied for enterprises with foreign owned capital and 
foreign parties to business cooperation contracts is 25%. WT/ACC/VNM/13/Add.1 
Page 28  
 
tax for four (4) years commencing from th e time when its operations start to earn 
profit and a fifty (50%) pe rcent reduction for the four (4) subsequent years;  
- Enterprises investing in areas with social ly and economically harsh conditions are 
entitled to the corporate income tax of  10% throughout the duration of investment 
project, an  exemption of corporate income tax for four (4) years commencing from 
the time when its operations start to earn profit and a fifty (50%) percent reduction for 
the four (4) subsequent years;  
- BOT, BTO, and BT enterprises investing in areas included in the List of areas of 
socio-economic disadvantages and socio- economic harsh cond itions; afforestation 
projects, projects for construction and opera tion of infrastructure facilities in areas of 
socio-economic harsh conditions are entitled to the corporate income tax of 10% throughout the duration of investment project , and an  exemption of corporate income 
tax for eight (8) years commencing from the time when their operations starts to earn 
profits.  
b. Exemption of import duties: 
- Enterprises with foreign owned capital investing in areas of socio-economic harsh 
conditions shall be entitled to an import duty exemption with respect to raw materials 
for production for five (5) years from the time when production commences. 
c. Preferential remittance (withholding) tax: 
- Foreign investors investing in areas of socio-economic harsh conditions included in 
the List of areas of socio-economic di sadvantages and socio-economic harsh 
conditions are entitled to the remittance (withholding) tax rate of  three (3) per cent
16.   
6. Subsidy per unit, or in case where this is  not possible, the total amount or the annual 
amount budgeted for the subsidy 
 Data not available. 
7.  Duration of the subsidy and/or any other time-limit attached to it 
- 1 January 1999 – 31 July 2000: In conformity with the Notification on Industrial 
Subsidies of Viet Nam for the period of 1996-1998 (document WT/ACC/VNM/13); 
- From 1 August 2000: In conform ity with this Notification. 
8.  Statistic data permitting an assessment of the trade effects of the subsidy 
 Data not available. 
                                                      
16 Normal remittance (withholding) tax rate is 7%.  WT/ACC/VNM/13/Add.1 
 Page 29 
 
 
  XI. INVESTMENT INCENTIVES OFFERED TO VIETNAMESE ENTERPRISES 
WHICH HAVE PRODUCTION OR BUSINESS PROJECTS LOCATED IN CERTAIN AREAS
17 
1. Title of the subsidy program 
 Investment incentives offered to Vietnamese enterprises which have production or business 
projects located in certain areas. 
2. Policy objectives and/or purposes of the subsidy 
 To encourage Vietnamese investors in cert ain areas of socio-economic disadvantages and 
socio-economic harsh conditions. 
3. Background and authority for the subsidy 
a. Background 
- Law on Domestic Investme nt Promotion (amended)  No.03/1998/QH10 dated 20 
May 1998;  
- Decree No.51/1999/ND-CP of the Government dated 8 July 1999 providing details to 
implement the Law on Domestic Investment Promotion (amended)  No.03/1998/QH10 dated 20 May 1998; 
- Law on Corporate Income Tax No.03/1997/QH9 dated 10 May 1997;  
- Decree No.30/1998/ND-CP of the Government dated 13 May 1998 providing details 
to implement the Law on Corporate Income Tax; 
- Circular No.99/1998/TT-BTC of Ministry of Finance dated 14 July 1998 providing 
details to implement the Decree No.30/19 98/ND-CP of the Government dated 13 
May 1998 providing details to implement the Law on Corporate Income Tax. 
b. Authority 
- Ministry of Finance; 
- Ministry of Planning and Investment. 
4. Form of the subsidy 
- Exemption, reduction of land use payment; 
- Exemption, reduction of land rental; 
- Exemption, reduction of land use tax; 
- Preferential corporate income tax rates; 
- Longer periods of corporate income tax exemption and reduction; 
- Exemption, reduction of corporate income tax payable for the income attributable to 
expansion and/or enhancement investments; 
- Exemption of supplementary corporate income tax; 
- Exemption of personal income tax; 
- Exemption of import duties for equipment, machinery forming the enterprise’s fixed 
assets. 
                                                     
 
17 Annex 5 and 6 provides the List of areas of so cio-economic disadvantages and socio-economic harsh 
conditions (issued together with Decree No.51/1999/ND-CP dated 8 July 1999). WT/ACC/VNM/13/Add.1 
Page 30  
 
5. To whom and how the subsidy is provided 
a. Exemption, reduction of land use payment: 
- Investors making land use payment in return for the land allocated by the State to 
conduct their production or business activitie s shall be entitled to a 75% reduction of 
land use payment if their investment proj ects are implemented in areas of socio-
economic disadvantages; 
- Investors making land use payment in return for the land allocated by the State to 
conduct their production or business activ ities shall be entitled to an exemption of 
land use payment if their investment proj ects are in business sectors subject to 
investment incentives and are implemented in areas of socio-economic disadvantages 
or socio-economic harsh conditions. 
b. Exemption, reduction of land rental: 
- Investors in areas of socio-economic disa dvantages are entitled to an exemption of 
land rental for 7 years from the date of signing land-renting contract if their projects 
are implemented in districts of mountainous provinces or plain areas; for 10 years 
from the date of signing land-renting contr act if their projects are implemented in 
districts of high mountainous provinces; 
- Investors in areas of socio-economic disa dvantages are entitled to an exemption of 
land rental for 11-13 years from the date of signing land-renting contract if their 
projects are in business sectors subject to investment incentives; 
- Investors in business fields subject to in vestment incentives in areas of socio-
economic disadvantages which annually employ at least 20 employees on average, 
are entitled to an exemption of land rental for 13 years from the date of signing land-
renting contract. 
- Investors in areas of socio-economic hars h conditions are entitled to an exemption of 
land rental for 11 years from the date of signing land-renting contract if their 
investment projects are implemented in distri cts of mountainous provinces, or ethnic 
minority plain areas; for 15 years from the date of signing land-renting contract if 
their investment projects are implemented in districts of high mountainous provinces, islands areas.  
- Investors in business fields subject to investment incentives  in areas of socio-
economic harsh conditions are entitled to an ex emption of land rental throughout the 
duration of investment project.  
c. Exemption, reduction of land use tax: 
- Investors in areas of socio-economic disa dvantages are entitled to an exemption of 
land use tax for 7 years from the date of land allocation if their investment projects 
are implemented in districts of mountainous provinces or plain areas; for 10 years 
from the date of land allocation if their investment projects are implemented in 
districts of high mountainous provinces; 
- Investors in areas of socio-economic disa dvantages are entitled to an exemption of 
land use tax for 11-15 years from the date  of land allocation if their investment 
projects are in business fields/sectors subject to investment incentives; 
- Investors in business fields subject to in vestment incentives in areas of socio-
economic disadvantages which annually employ at least 20 employees on average, 
are entitled to an exemption of land use tax for 15 years from the date of land 
allocation. 
- Investors in areas of socio-economic hars h conditions are entitled to an exemption of 
land use tax for 11 years from the date of land allocation if their investment projects  WT/ACC/VNM/13/Add.1 
 Page 31 
 
 
  are implemented in districts of mountainous provinces or ethnic minority plain areas; 
for 15 years from the date of land allocation if their investment projects are 
implemented in districts of high mountainous provinces, islands areas. 
- Investors in business fields subject to in vestment incentives in areas of socio-
economic harsh conditions are entitled to an exemption of land use tax throughout the 
duration of investment project. 
d. Preferential corporate income tax rates: 
- Investors in areas of socio-economic di sadvantages are entitled to the preferential 
corporate income tax rate of 25%;  in so cio-economic harsh conditions are entitled to 
the preferential corporate income tax rate of 20%; 
- Investors in business fields subject to investment incentives are entitled to the 
preferential corporate income tax rate of 20% if these projects are implemented in 
areas of socio-economic disadvantages and 15%   if these projects are implemented in 
areas of socio-economic harsh conditions. 
e. Longer periods of corporate income tax exemption and reduction applied to investment 
projects in which new production, business establishments are formed: 
- Investors in business fields subject to in vestment incentives in areas of socio-
economic disadvantages are entitled to an exemption of corpor ate income tax for 
three (3) years and a 50% reduction of the corporate income tax payable for the 5-7 
subsequent years; 
- Investors in business fields subject to in vestment incentives in areas of socio-
economic disadvantages which annually employ at least 20 employees on average, 
are entitled to an exemption of corporate income tax for three (3) years and a 50% 
reduction of the corporate income tax payable for the 7 subsequent years;  
- Investors in business fields subject to in vestment incentives in areas of socio-
economic harsh conditions are entitled to an exemption of corporate income tax for 
four (4) years and a 50% reduction of the corporate income tax payable for the 7-9 subsequent years; 
- Investors in business fields subject to in vestment incentives in areas of socio-
economic harsh conditions whic h annually employ at least 20 employees on average, 
are entitled to an exemption of corporate income tax for four (4) years and a 50% 
reduction of the corporate income tax payable for the 9 subsequent years. 
f. Exemption, reduction of corporate income  tax payable for the income attributable to 
expansion and/or enhancement investments: 
- Investors having expansion and/or enhancement investment projects in business fields 
subject to investment incentives  in areas of socio-economic disadvantages are entitled to an exemption of corporate income tax for three (3) years and a 50% 
reduction of the corporate income tax payable for the income attributable to this 
investment for the 5 subsequent years; 
- Investors having expansion and/or enhancement investment projects in business fields 
subject to investment incentives  in areas of socio-economic harsh conditions are 
entitled to an exemption of corporate in come tax for four (4) years and a 50% 
reduction of the corporate income tax payable for the income attributable to this 
investment for the 7 subsequent years;  WT/ACC/VNM/13/Add.1 
Page 32  
 
g. Exemption of supplementary corporate income tax: 
- Investors in areas of socio-economic disadvantages or areas of socio-economic harsh 
conditions are entitled to an exemption of supplementary corporate income tax.  
h. Exemption of personal income tax: 
- Investors being individuals are entitled to an exemption of personal income tax 
payable for the income attributable to his/he r capital contribution to or stock purchase 
of enterprises located in areas of socio-economic disadvantages or areas of socio-
economic harsh conditions for 10 years commencing from the time when he/she is 
liable for personal income tax in accordance with law on personal income tax.  
i. Exemption of import duties for equipment, ma chinery forming the enterprise’s fixed assets: 
- Investors in areas of socio-economic disadvantages or areas of socio-economic harsh 
conditions are entitled to import duty exem ption in respect of the following goods 
provided that they have not been domestically produced or have been domestically 
produced but of  unsatisfactory quality:  
- Specialized transportation means, m achinery and equipment (included in 
technological lines) imported forming ente rprises’ fixed assets or to extend 
project investment scale, to renovate technology; 
- Specialized transportation means used to transport workers. 
6. Subsidy per unit, or in case where this is  not possible, the total amount or the annual 
amount budgeted for the subsidy 
 Data not available. 
7.  Duration of the subsidy and/or any other time-limit attached to it 
 From 1 January 1999 – 
8.  Statistic data permitting an assessment of the trade effects of the subsidy 
 Data not available.  WT/ACC/VNM/13/Add.1 
 Page 33 
 
 
  XII. EXPORT SUPPORT FUND 
1. Title of the subsidy program  Export Support Fund. 
2. Policy objectives and/or purposes of the subsidy 
To expand the export markets and improve competitiveness for Vietnamese export products, to 
support, encourage and promote exportation. 
3. Background and authority for the subsidy 
a. Background 
- Decision No.195/1999/QD-TTg of the Prime Minister dated 27 September 1999 on 
establishment, utilization and management of Export Support Fund; 
- Circular No.150/1999/TT-BTC of Ministry of Finance dated 21 December 1999 
guiding the implementation of Decision No.195/1999/QD-TTg of the Prime Minister 
dated 27 September 1999 on establishment,  utilization and management of Export 
Support Fund; 
- Decision No.1555/1999/QD-BTM of Minister of Trade dated 30 December 1999 on 
issuance of Regulations for export reward in accordance with Decision No.195/1999/QD-TTg of the Prime Minister dated 27 September 1999 on 
establishment, utilization and management of Export Support Fund. 
b. Authority 
- Ministry of Finance; 
- Ministry of Trade. 
4. Form of the subsidy 
- Interest rate support; 
- Interest differential support; 
- Financial support; 
- Export reward; 
- Other forms of support. 
5. To whom and how the subsidy is provided 
- Eligible recipients are exporting-importin g enterprises (mainly those trading in 
agricultural products), manufacturing enterprises who export their products directly, 
and other enterprises as decided by the Prime Minister. 
a. Interest rate support: 
- Exporting – importing enterprises can be pr ovided with partial or full support for the 
interests incurred on those banks’ loans to purchase agricultural products for export at 
the floor (reference) price or at a price reasonable for producers as specified by the Prime Minister; WT/ACC/VNM/13/Add.1 
Page 34  
 
- Enterprises which assume the duty of reserving goods for circulation under the Prime 
Minister’s direction can be provided with partial or full support for the interests 
incurred on those banks’ loans to implement their duty. 
b. Interest differential support: 
- Trading enterprises can be provided with partial or full suppor t for the difference 
between short-term interest  rate charged by commercial banks and the eligible 
preferential rate for the purchase and storage of agricultural products for export under 
the Prime Minister’s direction; 
- Enterprises which purchase, process and directly export seasonal agricultural 
products can be provided with partial or full support for the difference between short-
term interest rate charged by commercial  banks and the eligible preferential rate 
under the Prime Minister’s direction. 
c. Financial support: 
- Partial financial support can be provided for a definite duration for a number of 
export items that suffer from losses or financial difficulties due to their low 
competitiveness or objective risks in the following cases: 
- Goods exported for the first time; 
- Goods exported to new market which is not yet stable; 
- Goods already purchased but not yet expor ted due to sharp decreases in world 
prices; 
- Goods directly exported by producers which suffer from temporary losses 
due to low competitiveness resulting fr om the newly engaged investment. 
- Exporting-importing enterprises which have contributed to the Export Support Fund 
(in the form of import/export price differential surcharge) and are now suffering from 
financial difficulties due to price fluctuatio ns can be provided with partial financial 
support.  
d. Export reward: 
- Export reward includes (i) reward for finding or expanding export markets; (ii) 
reward for first-time exported items; (iii) reward for export goods with high quality 
recognized and certified by international or ganisations; (iv) reward for export goods 
with high value of domestic material and labor; (v) reward for high and efficient 
export turnover. 
- Eligibility: Lawfully established enterprises of  all forms of ownerships which directly 
export goods with high and efficient performance, and satisfy one of the above-
mentioned criteria (export reward  is separately granted for each criterion satisfied, 
provided that the total reward granted to  any enterprise satisfying more than one 
criterion will not exceed VND 300 million): 
- Exporting a new item  (or a new category of goods), which has, for the first 
time, been penetrated and marketed abroad and hence been added to the list 
of Viet Nam’s export goods (not the item or category of goods that the 
enterprise has, for the first time, exported abroad) and/or which has, for the 
first time, been efficiently marketed in the new export markets with the 
annual export value of at least USD 100,000. However, the respective annual export value threshold with regard to enterprises operating in mountainous 
and island provinces is only USD 50,000. This criterion shall be applied to  WT/ACC/VNM/13/Add.1 
 Page 35 
 
 
  both cases (new commodity, new market). If either of these two cases reaches 
the threshold level of export value of USD 100,000 per year (or USD 50,000 
per year), or the combined export va lue of both cases reaches the above-
mentioned target level, the enterprise shall be considered for export reward. 
The reward value is equivalent to 1% of the FOB export value converted into 
the Vietnamese Dong at the average ex change rate between the Vietnamese 
Dong and the US Dollar on the inter-bank foreign currencies market, 
announced by the State Bank of Viet Nam at the time of reward 
consideration. However, the reward value must not exceed VND 150 million 
for one case. 
- Expanding the existing export market or opening new markets or exporting 
efficiently new item with the current ye ar’s export value being higher than 
that of the preceding year (this grow th rate is, for the immediate future, 
specified generally as 20%, particularly as 15% for mountainous and island 
provinces; with the export value of current year increasing by between USD 
200,000 and USD 500,000 as compared with that of the preceding year, depending on product line and geographi cal area. The Top 10 enterprises in 
the reward list shall be granted for a reward of between VND 50 to VND 100 
million for each enterprise; the other en terprises in the list which also satisfy 
this criterion shall be granted rewards at lower levels which must not exceed 
50 percent of the lowest reward level among the Top 10 enterprises; 
- High-quality export commodities which are awarded medals at international 
fairs and exhibitions held overseas  or granted certificates or written 
certification by international quality control organizations. Enterprises 
satisfying this criterion shall be rewarded VND 40 million for each medal or 
certificate for good quality obtained; 
- Exporting goods with domestic content of at least 60 %; or goods regarded as 
labor-intensive products in accordance with existing regulations such as: fine 
art handicraft articles; processed agricu ltural, forestry and aquatic products; 
garments, footwear,…with the enterprise's annual aggregate export value of 
all these export items reaching USD 10 million or more, and USD 3 million 
or more for fine art handicraft articles. The Top 10 enterprises in the reward 
list shall be granted a reward of between VND 50 to VND 100 million for 
each enterprise; the other enterprises in the list which also satisfy this 
criterion shall be granted rewards at lo wer levels which must not exceed 50 
percent of the lowest reward leve l among the Top 10 enterprises; 
- Exporting non-quota commodities or amount in excess of allocated quota 
with the annual value reaching USD 50 million or more. The Top 10 
enterprises in the reward list shall be granted a reward of between VND 50 to 
VND 100 million for each enterprise; the other enterprises in the list which 
also satisfy this criterion shall be gran ted rewards at lower levels which must 
not exceed 50 percent of the lowest reward level among the Top 10 
enterprises. 
e. Other form of support under the Prime Minister’s decisions  Data not available. 
6. Subsidy per unit, or in case where this is  not possible, the total amount or the annual 
amount budgeted for the subsidy 
- Total outlay from Export Support Fund in 2000: VND 128.4 billion (equivalent to 
roughly USD 9.2 million at the exchange rate of VND 14000/USD 1). WT/ACC/VNM/13/Add.1 
Page 36  
 
- Export reward: 
Year Total value of export reward Number of 
reward recipients 
(enterprises) Average export 
reward per 
enterprise 
1998  
(Under the Export Reward 
Fund which no longer 
exists) VND 4.7 billion 
(USD 323,103) 85 USD 3,800 
1999  
(Export Support Fund) More than VND 6.2 billion 
(USD 427,586) 148 USD 2,900 
2000  
(Export Support Fund) VND 10.6 billion 
(approximately USD 706,667) 158 USD 4,470 
 
7.  Duration of the subsidy and/or any other time limit attached to it 
 From 12 October 1999 – 
8.  Statistic data permitting an assessment of the trade effects of the subsidy 
 Data not available.  WT/ACC/VNM/13/Add.1 
 Page 37 
 
 
  XIII. DEVELOPMENT ASSISTANCE FUND 
1. Title of the subsidy program  Development Assistance Fund. 
2. Policy objectives and/or purposes of the subsidy 
 To assist the implementation of the State’s important economic projects and schemes and 
assist difficult areas. 
3. Background and authority for the subsidy 
a. Background 
- Decree No.43/1999/ND-CP dated 29 June 1999 of the Government on the State’s 
development investment credits; 
- Decree No.50/1999/ND-CP dated 8 July 1999 of the Government on the organisation 
and functions of Development Assistance Fund; 
- Decision No.231/1999/QD-TTg dated 17 December 1999 of the Prime Minister on 
approval of Charter of organisation and functions of the Development Assistance 
Fund; 
- Decision No.232/1999/QD-TTg dated 17 December 1999 of the Prime Minister on 
issuance of Financial Management Regulation of the Development Assistance Fund; 
- Circular No.42/2000/TT-BTC dated 23 May 2000 of Ministry of Finance guiding the 
implementation of financial management on the Development Assistance Fund. 
b. Authorities 
- Ministry of Finance; 
- Ministry of Industry; 
- Ministry of Agriculture and Rural Development; 
- Ministry of Transport; 
- Ministry of Fishery; 
- Ministry of Planning and Investment. 
4. Form of the subsidy 
- Investment loans; 
- Post-investment interest-rate support; 
- Investment credit guarantee. 
5. To whom and how the subsidy is provided a. Investment loans 
- Eligible borrowers are development inve stment projects, which are capable of 
directly recouping capital (including projects for the establishment of new enterprises, 
or on technological renovation for production expansion) of all economic sectors, 
including: 
- Investment projects in the areas listed herein in Annex 5 and Annex 6, which 
fall into one of the following business fields: WT/ACC/VNM/13/Add.1 
Page 38  
 
- Electricity generation; minerals e xploitation (except for oil and gas, 
mineral water, gold and gems); ba sic chemicals; fertilizers; micro-
biological insecticides; 
- Manufacturing of machine tools and motor machines serving 
agriculture; 
- Construction of processing establishments: agriculture, forestry, 
aquaculture and salt making establishments; 
- Production of export goods, especially labor-intensive projects; 
- Planting of material-supplying forest; perennial industrial crops, fruit 
trees; 
- Infrastructure projects in transportation, water supply and housing, 
which can directly recoup capital. 
- Aquatic farming and milky cow raising projects; 
- Projects to implement the Government’s policies on the expansion of 
medical, educational, cultural, physic al training and sports activities; 
- Projects using the re-lent capital of official development assistance (ODA); 
- A number of other investment programs and/or projects under the Prime 
Minister’s decisions. 
- Loan conditions: eligible borrowers which have completed the investment procedures 
in accordance with the State’s regulations; 
- The loan amount of each project shall comply with the provisions of the Law on 
Domestic Investment Promotion (amended); 
- The credit term shall be determined in  accordance with the capital repayment 
capability, compatible with each project’ s production and business characteristics and 
the investor’s debt repayment capab ility, but shall not exceed 10 years; 
- The interest rate of the State’s develo pment investment credit was 9%/year and 
7%/year in 1999 and in 2000 respectively. 
b. Post-investment interest-rate support 
- Eligible recipients are projects which: (i ) included in the List of business fields/ 
sectors subject to investment incentives (A nnex 4); (ii) the investors of which have 
borrowed capital from credit institutions lawfully operating in Viet Nam to make 
investment therein; (iii) the investment of which has been completed and put into use; 
and (iv) loan capital for making investment has been repaid; 
- Conditions for enjoying the post-investment interest rate support: the project has not 
been provided with investment loans or investment credit guarantees through the 
State’s development investment credits; 
- The amount of the post-investment interest-rate support shall be equal to the total 
investment capital borrowed from the cred it institutions multiplied by 50% of the 
interest rate of the State’s development investment credits. 
c. Investment credit guarantee 
- Eligible recipients are investors having investment projects included in the List of 
business fields/ sectors subject to investment  incentives (Annex 4) which have not yet 
provided with the post-investment interest-rate support or investment loans from the 
State’s development investment credits, or which have just borrowed a part of capital 
therefrom; 
- The guarantee value for a single project shall be equal to the loan capital amount 
provided by the credit institutions within the total investment capital of the project but  WT/ACC/VNM/13/Add.1 
 Page 39 
 
 
  shall not exceed the level pr escribed by the Law on Domestic Investment Promotion 
(amended); 
- The guaranteed investors shall have to pay to the Development Assistance Fund a 
guarantee fee of 0.5%/year of the guarantee value. 
6. Subsidy per unit, or in case where this is  not possible, the total amount or the annual 
amount budgeted for the subsidy 
 Specific data not available. 
7.  Duration of the subsidy and/or any other time-limit attached to it 
 From 23 July 1999 – 
8.  Statistic data permitting an assessment of the trade effects of the subsidy 
 Data not available. WT/ACC/VNM/13/Add.1 
Page 40  
 
XIV. INVESTMENT ASSISTANCE FOR SCIENCE AND TECHNOLOGY 
DEVELOPMENT 
1. Title of the subsidy program 
 Assistance for science and technology development. 
2. Policy objectives and/or purposes of the subsidy 
 To encourage enterprises to invest in resear ch and development of science and technology 
with a view to upgrading, improving technolo gy, increasing product quality and production 
efficiency. 
3. Background and authority for the subsidy 
a. Background  
- Decree No.119/1999/ND-CP dated 18 September 1999 of the Government on policies 
and financial mechanisms to encourage enterprises to inve st in science and 
technology development; 
- Inter-Ministerial Circular No.2341 /2000/TTLT-BKHCNM T-BTC dated 28 
November 2000 of Ministry of Science, Technology and Environment and Ministry of Finance guiding the implementation of Decree No.119/1999/ND-CP dated 18 September 1999 of the Government on policies and financial mechanisms to 
encourage enterprises to invest in science and technology development; 
- Law on Domestic Investme nt Promotion (amended)  No.03/1998/QH10 dated 20 
May 1998;  
- Decree No.51/1999/ND-CP of the Government dated 8 July 1999 providing details to 
implement the Law on Domestic Investment Promotion (amended)  No.03/1998/QH10 dated 20 May 1998; 
- Law on Foreign Investment in Viet Nam dated 12 November 1996; 
- Law on supplements of and amendments to some Articles of the Law on Foreign 
Investment in Viet Nam (Law No.18/2000/QH10) dated 9 June 2000; 
- Decree No.24/2000/ND-CP dated 31 July 2000 of the Government providing detailed 
regulations on the implementation of the Law on Foreign Investment in Viet Nam; 
- Law on Corporate Income Tax No.03/1997/QH9 dated 10 May 1997;  
- Decree No.30/1998/ND-CP of the Government dated 13 May 1998 providing details 
to implement the Law on Corporate Income Tax; 
- Circular No.99/1998/TT-BTC of Ministry of Finance dated 14 July 1998 providing 
details to implement the Decree No.30/19 98/ND-CP of the Government dated 13 
May 1998 providing details to implement the Law on Corporate Income Tax. 
b. Authority 
- Ministry of Finance; 
- Ministry of Science, Technology and Environment. 
4. Form of the subsidy 
- Preferential corporate income tax rates; 
- Exemption, reduction of corporate income tax; 
- Exemption of supplementary corporate income tax; 
- Preferential treatment with respect to la nd use payment, land rental, land use tax; 
- Exemption of import duty;  WT/ACC/VNM/13/Add.1 
 Page 41 
 
 
  - Preferential credit terms; 
- Other forms of assistance. 
5. To whom and how the subsidy is provided 
a. Preferential corporate income tax rates: 
- Enterprises operating under the Law on Domestic Investment Promotion (amended) 
which apply high-tech or use science and te chnology services in their operation are 
eligible to enjoy corporate income ta x rates for the income earned from these 
activities as follows: 
- The tax rate of 25%; 
- The tax rate of 20% with respect to en terprises invested in areas of socio-
economic disadvantages (Annex 5); 
- The tax rate of 15% with respect to en terprises invested in areas of socio-
economic harsh conditions (Annex 6). 
- Enterprises with foreign-owned capital and business co-operation parties operating 
under the Law on Foreign investment in Viet  Nam, which have investment projects in 
high-tech industries, high-tech service in  high-tech zones; scientific research; 
applying new bio-technology and new technology for manufacturing information and 
telecommunications equipment; investment in  research and development are eligible 
to enjoy corporate income tax rates of 10%  throughout the duration of the investment 
project. 
- Enterprises with foreign-owned capital and business co-operation parties operating 
under the Law on Foreign investment in Viet  Nam, which have investment projects in 
fields of applying and developing high-tech, science and technology services are eligible to enjoy corporate income tax rate s of 20% for 10 years from the time when 
the project starts its operation. 
b. Exemption, reduction of corporate income tax: 
- Exemption of corporate income tax in the following cases: 
- Income earned from the implementation of contracts relating to research and 
development; 
- Income earned from the implementation of contracts relating to technical 
services that are of direct service to agricultural production; 
- Income earned from the capital contribution in the form of intellectual 
property rights, technical know-how and technological processes. 
- Enterprises operating under the Law on Domestic Investment Promotion (amended), 
which have investment projects in the fields of science and technology services; projects on the investment and establishment of new production lines, expansion of 
production scale and technology renovation shall be entitled for the following preferences: 
- Exemption of corporate income tax for the increased income owing to this 
new investment for the 1
st year and a 50% reduction of the payable corporate 
income tax for the 4 subsequent years. 
- Exemption of corporate income tax for the increased income owing to this 
new investment for the first 3 years and a 50% reduction of the payable WT/ACC/VNM/13/Add.1 
Page 42  
 
corporate income tax for the 5 subsequent  years with regard to production or 
business units located in the areas of socio-economic disadvantages (Annex 
5); 
- Exemption of corporate income tax for the increased income owing to this 
new investment for the first 4 years and a 50% reduction of the payable 
corporate income tax for the 7 subsequent  years with regard to production or 
business units located in the areas of socio-economic harsh conditions 
(Annex 6). 
- Enterprises with foreign-owned capital and business co-operation parties operating 
under the Law on Foreign investment in Viet Nam which have investment projects in the fields of high-tech industry, high-tech service in high-tech zones shall be entitled 
to an exemption of corporate income tax for 8 years from first profit-making year; 
- Enterprises with foreign-owned capital and business co-operation parties operating 
under the Law on Foreign investment in Viet Nam which have investment projects in 
the fields of scientific research; applying new bio-technology and new technology for manufacturing information and telecommun ications equipment; investment in 
research and development shall be entitled to an exemption of corporate income tax 
for 4 years from first profit-making year an d a 50% reduction of corporate income tax 
for the 4 subsequent years; 
- Enterprises with foreign-owned capital and business co-operation parties operating 
under the Law on Foreign investment in Viet Nam which have investment projects in the fields of science and technology sha ll be entitled to an exemption of corporate 
income tax for 1 year from the first profit-making year and a 50% reduction of 
corporate income tax for the 2 subsequent years; 
- Foreign investors who use their distributed pr ofits to reinvest will be entitled to a 
specific ratio of refund of cor porate income tax already paid.  
c. Exemption of supplementary corporate income tax: 
- Enterprises, which invest in the field of sc ience and technology, shall be entitled to an 
exemption of supplementary corporate inco me tax payable for the activities in the 
field of science and technology. 
d. Preferential treatment with respect to land use payment, land rental, land use tax: 
- Enterprises operating under the Law on Domestic Investment Promotion (amended), 
which invest in the field of science and technology, shall be entitled to the 
preferential treatment with respect to land use payment, land rental and land use tax 
for the area of allocated or leased land if they use the land to build science and 
technology research base, experimental laboratories or stations as follows: 
- In case that they are allocated land an d hence subject to liability of land use 
payment: 
- A 50% reduction of land use payment; 
- Exemption of land use payment if the allocated land is in areas of 
socio-economic disadvantages (Annex 5) or in areas of  socio-
economic harsh conditions (Annex 6); 
- In case that they rent land and henc e subject to payment of land rental: 
- Exemption of land rental for 6 years from the time of signing of land-
renting contract;  WT/ACC/VNM/13/Add.1 
 Page 43 
 
 
  - Exemption of land rental for 15 years from the time of signing of 
land-renting contract if the leased la nd is in areas of socio-economic 
disadvantages (Annex 5); 
- Exemption of land rental throughout the duration of investment 
project if the leased land is in areas of socio-economic harsh 
conditions (Annex 6). 
- In case that they are allocated land and hence subject to payment of land use 
tax: 
- Exemption of land use tax for 6 years from the time of land 
allocation. 
- Exemption of land use tax for 15 years from the time of land 
allocation if the allocated land is in areas of socio-economic 
disadvantages (Annex 5); 
- Exemption of land use tax throughout the duration of investment 
project if the leased land is in areas of socio-economic harsh conditions (Annex 6). 
- Investors in the field of science and technology under the Law on Foreign Investment 
in Viet Nam, shall be entitled to the preferen tial treatment with respect to land rental 
for the area of leased land in accordance w ith the existing regulations if they use the 
land to build experimental laboratories, product development workshops or to 
conduct experimental research or studies. 
e. Exemption of import duty: 
- Imported machinery, equipment, materials,  scientific and technological equipment 
with automatic control devices, experimental samples, measurement and experiment 
devices directly used in projects, contracts of research and development, which have 
not yet been domestically manufactured or have been domestically manufactured but 
failed to meet the prescribed requirements, shall be entitled to an exemption of import 
duty. 
f. Preferential credit terms: 
- Enterprises operating under the Law on Domestic Investment Promotion (amended) 
in the field of science and technology sha ll be entitled to access to medium and long-
term credits which can satisfy at a maximum 70% of their projects’ investment capital 
at preferential interest rate at Developm ent Assistance Fund, Export Support Fund 
and Science and Technology Development Assistance Fund. In the event that the 
enterprise has been guaranteed by the Development Assistance Fund to borrow 
medium and long term credits at the Bank for Investment and Development, it shall 
be refunded the difference between the pr eferential interest rate and the normal 
borrowing rate. 
g. Other forms of assistance: 
- The financial support provided by the Stat e for Vietnamese enterprise shall not 
exceed 30% of the total implementation cost of the research projects carried out by 
the Vietnamese enterprise itself or in coordination with other science agencies to 
create new technology in the business fields /sectors subject to the State’s priority 
incentives. WT/ACC/VNM/13/Add.1 
Page 44  
 
6. Subsidy per unit, or in case where this is  not possible, the total amount or the annual 
amount budgeted for the subsidy 
Data not available. 
7.  Duration of the subsidy and/or any other time limit attached to it 
From 3 October 1999 – 
8.  Statistic data permitting an assessment of the trade effects of the subsidy 
Data not available.  WT/ACC/VNM/13/Add.1 
 Page 45 
 
 
  XV. SUPPORT FOR THE IMPLEMENTATION OF THE SCHEMES FOR 
DEVELOPMENT OF PRIORITY INDUSTRIAL PRODUCTS 
1. Title of the subsidy program 
 Support for the implementation of the sche mes for development of priority industrial 
products. 
2. Policy objectives and/or purposes of the subsidy 
 To support for the development of priority industrial products. 
3. Background and authority for the subsidy 
a. Background  
- Decision No.37/2000/QD-TTg dated 24 March 2000 of the Prime Minister on 
issuance of policies on development assistance for priority industrial products (i.e. 
maritime ships with the capacity of 11,50 0 tones, internal combustion engines of 
below 30 CV, colour television sets); 
- Circular No.86/2000/TT-BTC dated 16 Augus t 2000 of Ministry of Finance guiding 
the implementation of policies on financial support and preferential treatment to develop those priority industrial products in accordance with Decision No.37/2000/QD-TTg dated 24 March 2000 of the Prime Minister; 
- Decree No.43/1999/ND-CP dated 29 June 1999 of the Government on the State’s 
development investment credits; 
- Decree No.50/1999/ND-CP dated 8 July 1999 of the Government on the organisation 
and functions of Development Assistance Fund; 
- Law on Corporate Income Tax No.03/1997/QH9 dated 10 May 1997;  
- Decree No.30/1998/ND-CP of the Government dated 13 May 1998 providing details 
to implement the Law on Corporate Income Tax; 
- Circular No.99/1998/TT-BTC dated 14 July 1998 of Ministry of Finance providing 
details to implement the Decree No.30/19 98/ND-CP of the Government dated 13 
May 1998 providing details to implement the Law on Corporate Income Tax. 
b. Authority 
- Ministry of Finance; 
- Ministry of Industry; 
- Ministry of Transport. 
4. Form of the subsidy 
- Exemption of import duty; 
- Preferential corporate income tax rates; 
- Preferential access to the State’s development investment credits; 
- Reduction of land rental. 
5. To whom and how the subsidy is provided 
- Eligible recipients include: WT/ACC/VNM/13/Add.1 
Page 46  
 
- Enterprises which are assigned to be principally responsible for the 
implementation of the schemes for development of priority industrial 
products: 
- Viet Nam Shipping Industry Corporation – scheme for building 
maritime ships with the capacity of 11,500 tonnes; 
- Viet Nam Engine and Agriculture Machinery Corporation (VEAM) – 
scheme for manufacturing internal combustion engines of below 30 
CV; 
- Hanoi Electronics Company (HANEL) – scheme for producing 
colour television sets. 
- Enterprises assigned to participate in the schemes for developing priority 
industrial products include enterpri ses (including both Vietnamese and 
foreign-invested enterprises), which serve as suppliers of materials, semi-
products, units, components and accessories, etc. (and even suppliers to 
manufacturers of unfinished products, units, components and accessories, etc.), that are used in the production of  priority industrial products, and which 
are endorsed by the Ministry of Industry. 
a. Maritime ships with the capacity of 11,500 tonnes: 
- Preferential treatment with respect to tax: 
- Exemption of import duty until 31 Decembe r 2003 for specialised machinery, 
equipment, means of transportation of the technological line to establish 
enterprises’ fixed assets and necessary  materials that have not yet been 
domestically produced in order to be used in the building of maritime ships 
with the capacity of 11,500 tonnes; 
- Enterprises implementing the scheme for building maritime ships with the 
capacity of 11,500 tonnes shall be enti tled to corporate income tax rate of 
25% for the income earned therefrom and an exemption of corporate income 
tax for 2 years from the time of having  taxable income and  a 50% reduction 
of the payable corporate income tax for the 2 subsequent years. 
- Preferential access to credits:  
- Enterprises shall be entitled to access to the State’s development investment 
credits via the Development Assistance Fund to satisfy its investment demand for construction of production premises. The credit term shall not exceed 10 years for each loan. No collateral is required for the loan. 
However, borrowers are not allowed to transfer their assets before full 
repayment of their debts (including the principal and interests) for each loan; 
- Enterprises using domestically-built ma ritime ships with the capacity of 
11,500 tonnes are entitled to access to the State’s development investment 
credits at maximum level of 85% of the ship’s purchase value from the 
Development Assistance Fund. The credit term must not exceed 10 years; 
- Approved research and development sc hemes are entitled to capital support 
from the State’s budget for science and technology research. 
- Other preferences: 
- Eligible enterprises are entitled to a 50% reduction of land rental throughout 
the duration of the investment project.    WT/ACC/VNM/13/Add.1 
 Page 47 
 
 
  b. Internal combustion engines of below 30 CV: 
- Preferential treatment with respect to tax:: 
- Exemption of import duty until 31 Decembe r 2003 for specialised machinery, 
equipment, means of transportation of the technological line to establish 
enterprises’ fixed assets and necessary  materials that have not yet been 
domestically produced; 
- Enterprises implementing the scheme for manufacturing internal combustion 
engines of below 30 CV shall be entitle d to corporate income  tax rate of 25% 
for the income earned therefrom and an  exemption of corporate income tax 
for 2 years from the time of having taxable income and  a 50% reduction of 
the payable corporate income tax for the 2 subsequent years. 
- Preferential access to credits:  
- Enterprises shall be entitled to access to the State’s development investment 
credits via the Development Assistance Fund to satisfy its investment 
demand for construction of production premises. The credit term shall not 
exceed 10 years for each loan. No collateral is required for the loan. 
However, borrowers are not allowed to transfer their assets before full 
repayment of their debts (including the principal and interests) for each loan; 
- Approved research and development sc hemes are entitled to capital support 
from the State’s budget for science and technology research. 
- Other preferences: 
- Eligible enterprises are entitled to a 50% reduction of land rental throughout 
the duration of the investment project. 
c. Colour television sets: 
- Preferential treatment with respect to tax: 
- Exemption of import duty until 31 Decembe r 2003 for specialised machinery, 
equipment, means of transportation of the technological line to establish 
enterprises’ fixed assets; 
- Enterprises implementing the scheme fo r manufacturing colour television sets 
shall be entitled to corporate income tax rate of 25% for the income earned 
therefrom and an exemption of corporate income tax for 2 years from the 
time of having taxable income and  a 50% reduction of the payable corporate income tax for the 2 subsequent years. 
- Eligible for priority index with the adjustment factor of 0.5 when calculating 
import duty contingent upon localisation ratio. 
- Preferential access to credits:  
- Enterprises shall be entitled to access to the State’s development investment 
credits via the Development Assistance Fund to satisfy its investment demand for construction of production premises. The credit term shall not 
exceed 10 years for each loan. No collateral is required for the loan. 
However, borrowers are not allowed to transfer their assets before full 
repayment of their debts (including the principal and interests) for each loan; WT/ACC/VNM/13/Add.1 
Page 48  
 
- Approved research and development sc hemes are entitled to capital support 
from the State’s budget for science and technology research. 
- Other preferences: 
- Eligible enterprises are entitled to a 50% reduction of land rental throughout 
the duration of investment project . 
6. Subsidy per unit, or in case where this is  not possible, the total amount or the annual 
amount budgeted for the subsidy 
 Data not available 
7.  Duration of the subsidy and/or any other time-limit attached to it 
 From 8 April  2000 – 
8.  Statistic data permitting an assessment of the trade effects of the subsidy 
 Data not available.  WT/ACC/VNM/13/Add.1 
 Page 49 
 
 
   
XVI. ASSISTANCE FOR THE  DEVELOPMENT OF SOFTWARE INDUSTRY18 
1. Title of the subsidy program 
 Assistance for the development of software industry. 
2. Policy objectives and/or purposes of the subsidy 
 To encourage domestic organizations and in dividuals of all economic sectors, overseas 
Vietnamese and foreign organizations, individuals to invest in software production and supply of 
software-related  services in Viet Nam (hereinafter called software enterprises). 
3. Background and authority for the subsidy 
a. Background  
- Government Resolution No.07/2000/NQ-CP dated 5 June 2000 on establishment and 
development of software industry for the period of 2000-2005; 
- Decision No.128/2000/QD-TTg dated 20 November 2000 of the Prime Minister on 
policies and measures to encourage investment and development of software 
industry; 
- Decree No.43/1999/ND-CP dated 29 June 1999 of the Government on the State’s 
development investment credits; 
- Decree No.50/1999/ND-CP dated 8 July 1999 of the Government on the organization 
and functions of Development Assistance Fund; 
- Law on Domestic Investme nt Promotion (amended)  No.03/1998/QH10 dated 20 
May 1998;  
- Decree No.51/1999/ND-CP of the Government dated 8 July 1999 providing details to 
implement the Law on Domestic Investment Promotion (amended)  
No.03/1998/QH10 dated 20 May 1998; 
- Law on Foreign Investment in Viet Nam dated 12 November 1996; 
- Law on supplements of and amendments to some Articles of the Law on Foreign 
Investment in Viet Nam (Law No.18/2000/QH10) dated 9 June 2000; 
- Decree No.24/2000/ND-CP dated 31 July 2000 of the Government providing detailed 
regulations on the implementation of the Law on Foreign Investment in Viet Nam; 
- Law on Corporate Income Tax No.03/1997/QH9 dated 10 May 1997;  
- Decree No.30/1998/ND-CP of the Government dated 13 May 1998 providing details 
to implement the Law on Corporate Income Tax; 
- Circular No.99/1998/TT-BTC of Ministry of Finance dated 14 July 1998 providing 
details to implement the Decree No.30/ 1998/ND-CP of the Government dated 
13 May 1998 providing details to implement the Law on Corporate Income Tax. 
b. Authority 
- Ministry of Finance; 
- Ministry of Science, Technology and Environment. 
                                                      
18 Some of the activities covered in this programme may be services and hence are not subject to the 
WTO Agreement on Subsidies and Countervailing Measures. WT/ACC/VNM/13/Add.1 
Page 50  
 
4. Form of the subsidy 
- Preferential corporate income tax rates; 
- Exemption of corporate income tax; 
- Preferential treatment with respect to VAT; 
- Exemption of export duty; 
- Exemption of import duties on materials; 
- Preferential access to the State’s development investment credits; 
- Preferential treatment with respect to land use and land renting; 
- Other forms of support. 
5. To whom and how the subsidy is provided 
- Software enterprises are eligible to the following incentives and preferential 
treatment: 
a. Preferential corporate income tax rates: 
- Vietnamese software enterprises and foreign software enterprises operating in Viet 
Nam that are not subject to the Law on Foreign Investment in Viet Nam shall enjoy 
the corporate income tax rates as follows: 
- The tax rate of 25%; 
- The tax rate of 20% for enterprises investing in areas of socio-economic 
disadvantages (Annex 5); 
- The tax rate of 15% for enterprises investing in areas of socio-economic 
harsh conditions (Annex 6). 
- Foreign invested software enterprises that are subject to the Law on Foreign 
Investment in Viet Nam shall enjoy the corporate income tax rate of 10%.  
b. Exemption of corporate income tax: 
- Newly established software enterprises ar e entitled to an exemption of corporate 
income tax payable for the income earned  from software services and production 
activities for 4 years from the time of having the taxable income. Established software enterprises are entitled to an exem ption of corporate income tax payable for 
the income earned from software services and production activities for 4 consecutive 
years commencing from January 1, 2001; 
- Software enterprises are entitled to an exem ption of supplementary  corporate income 
tax payable for the income earned from soft ware production and service activities.  
c. Preferential treatment with respect to VAT: 
- Software products and  software services supplied by software enterprises to 
consumers in Viet Nam are not subject to VAT; 
- Software products and services for expo rt shall enjoy the VA T tax rate of 0%. 
d. Exemption of export duty: 
- Software products for export shall be exempt from export duty.  WT/ACC/VNM/13/Add.1 
 Page 51 
 
 
  e. Exemption of import duties on materials: 
- Import duty and VAT on import stage shall be  exempt for materials directly used for 
production of software products which have not yet been domestically produced.  
f. Preferential access to the State’ s development investment credits: 
- Software enterprises are entitled to access to  various forms of investment supports 
from the Development Assistance Fund. 
g. Preferential treatment with respect to land use and land renting: 
- Vietnamese software enterprises are entitle d to exemption, reduction of land use 
payment, land rental and land use tax in accordance with the Government Decree No. 
51/1999/ND-CP dated July 8, 1999 providing details on the implementation of the Law on Domestic Investment Promotion (amended) No. 03/1998/QH 10; 
- Software enterprises subject to the Law on Foreign Investment in Viet Nam are 
entitled to preferential treatment with resp ect to land rental in accordance with 
existing regulations. 
h. Other forms of support: 
- Professional Vietnamese employees direct ly engaging in software production and 
services activities are entitled to the same  minimum taxable personal income level 
and progressive level pres cribed for foreigners; 
- Organizations and individuals of all form s of ownership are allowed to establish 
information technology training establishments. Such establishments are entitled to 
the same preferential treatment for their in formation technology training activities as 
for software enterprises. 
6. Subsidy per unit, or in case where this is  not possible, the total amount or the annual 
amount budgeted for the subsidy 
 Data not available 
7.  Duration of the subsidy and/or any other time-limit attached to it 
 From 5 December  2000 – 
8.  Statistic data permitting an assessment of the trade effects of the subsidy 
 Data not available. WT/ACC/VNM/13/Add.1 
Page 52  
 
XVII. ASSISTANCE FOR VIETNAMESE NEWLY ESTABLISHED PRODUCTION AND 
TRADING BUSINESSES, FOR VIETNAMESE EXPANDED PRODUCTION 
BUSINESSES, AND FOR VIETNAMESE TRADING BUSINESSES  MOVING TO 
MOUNTAINOUS, ISLAND AND OTHER DISADVANTAGED AREAS 
1. Title of the subsidy program 
 Assistance for Vietnamese newly establis hed production and trading businesses, for 
Vietnamese expanded production businesses, an d for Vietnamese trading businesses moving to 
mountainous, island and other disadvantaged areas. 
2. Policy objectives and/or purposes of the subsidy 
 To assist newly-established domestic producti on and trading businesses to start and develop 
their businesses steadily. To encourage domestic pr oduction and trading businesses to invest in new 
production line, scope expansion, technology re novation, environment amelioration, productivity 
improvement. To assist domestic trading busines ses when they move to disadvantaged areas. 
3. Background and authority for the subsidy a. Background  
- Law on Corporate Income Tax No.03/1997/QH9 dated 10 May 1997;  
- Decree No.30/1998/ND-CP of the Government dated 13 May 1998 providing details 
to implement the Law on Corporate Income Tax; 
- Circular No.99/1998/TT-BTC of Ministry of Finance dated 14 July 1998 providing 
details to implement the Decree No.30/19 98/ND-CP of the Government dated 13 
May 1998 providing details to implement the Law on Corporate Income Tax; 
- Law on Domestic Investment  Promotion (amended)  No.03/1998/QH10 dated 20 
May 1998;  
- Decree No.51/1999/ND-CP of the Government dated 8 July 1999 providing details to 
implement the Law on Domestic Investment Promotion (amended)  
No.03/1998/QH10 dated 20 May 1998. 
b. Authority 
- Ministry of Finance. 
4. Form of the subsidy 
- Exemption and reduction of corporate income tax; 
5. To whom and how the subsidy is provided a. Newly established domestic production establishments: 
- Newly-established production establishm ents are entitled to an exemption of 
corporate income tax for the first 2 year s from the time the taxable income is 
generated, and a 50% reduction of the payable corporate income tax for the 2 
subsequent years. In mountainous, isla nd or other disadvantaged areas, t owHhe 
duration of 50% reduction of the payable corporate income tax applied to newly-
established production establishments sh all be extended for further 2 years; 
- Newly-established production establishments  in business fields/sectors subject to 
investment incentives (Annex 4) in districts other than mountainous, island or other  WT/ACC/VNM/13/Add.1 
 Page 53 
 
 
  disadvantaged areas are entitled to an exempti on  of corporate income tax for the first 
2 years from the time the taxable income is generated and a 50% reduction of payable 
corporate income tax for the 3 subsequent years; 
- Newly-established production establishments  in business fields/sectors subject to 
investment incentives (Annex 4) in districts of ethnic minority in high mountainous 
areas are entitled to an exemption of corporate income tax for the first 4 years from 
the time the taxable income is generated and a 50% reduction of payable corporate 
income tax for the 9 subsequent years; 
- Newly-established production establishments  in business fields/sectors subject to 
investment incentives (Annex 4) in districts of ethnic minority areas or mountainous, 
island areas are entitled to an exemption of  corporate income tax for the first 4 years 
from the time the taxable income is ge nerated and a 50% reduction of payable 
corporate income tax for the 7 subsequent years; 
- Newly-established production establishments  in business fields/sectors subject to 
investment incentives (Annex 4) in disadva ntaged areas are entitled to an exemption 
of corporate income tax for the first 3 years from the time the taxable income is generated and a 50% reduction of payable corporate income tax for the 5 subsequent 
years. 
b. Newly established domestic trading, services businesses: 
- Newly-established trading, services business es in business fields/sectors subject to 
investment incentives (Annex 4) in distri cts other than areas of ethnic minority, 
mountainous, island or other disadvantage d areas are entitled to a 50% reduction of 
payable corporate income tax for the first 2 years from the time the taxable income is 
generated; 
- Newly-established trading, services business es in business fields/sectors subject to 
investment incentives (Annex 4) in districts of ethnic minority in high mountainous areas are entitled to an exemption of corporate income tax for the first 2 years from the time the taxable income is generated and a 50% reduction of payable corporate 
income tax for the 5 subsequent years; 
- Newly-established trading, services business es in business fields/sectors subject to 
investment incentives (Annex 4) in districts of ethnic minority, mountainous, island 
areas are entitled to an exemption of corporate income tax for the first 2 years from the time the taxable income is generated and a 50% reduction of payable corporate income tax for the 4 subsequent years; 
- Newly-established trading, services business es in business fields/sectors subject to 
investment incentives (Annex 4) in disadva ntaged areas are entitled to an exemption 
of corporate income tax for the first 1 years from the time the taxable income is 
generated and a 50% reduction of payable corporate income tax for the 3 subsequent 
years. 
c. Domestic production businesses investing in new production line, scope expansion, 
technology renovation, environment am elioration, productivity improvement   
- are entitled to an exemption of corporat e income tax on the increased income 
attributable to the new investment for 1 year and a 50% reduction of payable corporate income tax for the 2 subsequent years. 
d. Domestic trading businesses moving to mountainous, island and other disadvantaged areas  
- are entitled to an exemption of corporate income tax for the first 3 years from the 
time the taxable in come is generated.  WT/ACC/VNM/13/Add.1 
Page 54  
 
6. Subsidy per unit, or in case where this is  not possible, the total amount or the annual 
amount budgeted for the subsidy 
 Data not available. 
7.  Duration of the subsidy and/or any other time-limit attached to it 
 From 1 January 1999 – 
8.  Statistic data permitting an assessment of the trade effects of the subsidy 
 Data not available.  WT/ACC/VNM/13/Add.1 
 Page 55 
 
 
  XVIII. ASSISTANCE FOR VIETNAMESE BUSINESSES HAVING SPECIAL ACTIVITIES 
1. Title of the subsidy program  Assistance for Vietnamese businesses having special activities. 
2. Policy objectives and/or purposes of the subsidy 
 To assist domestic businesses in  conducting special activities. 
3. Background and authority for the subsidy a. Background  
- Law on Corporate Income Tax No.03/1997/QH9 dated 10 May 1997;  
- Decree No.30/1998/ND-CP of the Government dated 13 May 1998 providing details 
to implement the Law on Corporate Income Tax; 
- Circular No.99/1998/TT-BTC of Ministry of Finance dated 14 July 1998 providing 
details to implement the Decree No.30/19 98/ND-CP of the Government dated 13 
May 1998 providing details to implement the Law on Corporate Income Tax. 
b. Authority 
- Ministry of Finance; 
4. Form of the subsidy 
- Exemption of corporate income tax; 
5. To whom and how the subsidy is provided 
- Vietnamese businesses are entitled to an ex emption of corporate income tax payable 
on the incomes earned from: 
- The performance of scientific research contracts; 
- The performance of technical services contracts in direct service of agriculture 
production; 
- Production, trading or servic es activities of businesses or  establishments reserved 
only for disabled laborers; 
- Vocational training activities exclusively reserved for disabled, ethnic minority 
people, children from especially difficult families and people committed to social 
evils; 
- Production, trading or services households that have monthly average incomes in a 
year less than the minimum salary level prescribed by the State for  State employees. 
6. Subsidy per unit, or in case where this is  not possible, the total amount or the annual 
amount budgeted for the subsidy 
 Data not available. 
7.  Duration of the subsidy and/or any other time-limit attached to it 
 From 1 January 1999 – WT/ACC/VNM/13/Add.1 
Page 56  
 
8. Statistic data permitting an assessment of the trade effects of the subsidy 
 Data not available.  WT/ACC/VNM/13/Add.1 
 Page 57 
 
 
  ANNEX 1  
LIST OF FOREIGN-INVESTED PROJECTS ELIGIBLE FOR INVESTMENT INCENTIVES 
(issued together with Decree No.24/2000/ND-CP dated 31 July 2000) 
- Producing, processing for export at least fifty (50) per cent of products; 
- Producing, processing for export at least thirty  (30) per cent of products and using many 
domestic raw materials and materials (with a valu e of at least thirty (30) per cent of total 
production costs); 
- Intensively using labour and effectively utilisi ng natural resources available in Viet Nam; 
- Processing agricultural, forestry (excep t for wood) and aqua-cultural products; 
- Preserving foodstuffs; post-harvest preservation of agricultural products; 
- Exploration, mining and down-stream processing of minerals; 
- Development of petro-chemical industry; construction and operation of oil and gas pipelines, 
oil storage and ports; 
- Manufacturing of equipment and component packs for oil and gas exploitation, mining, and 
energy fields; manufacturing of large-size lifting equipment; 
- Production of high-quality steel, alloy, non-ferr ous metal, and special metal, steel billet and 
sponge iron used in industry; 
- Manufacturing machine tools for metal processing, metallurgy equipment; 
- Manufacturing precision mechanical equipment, equipment for safety examination and 
control; manufacturing jig and dies for metal and non-metal products; 
- Manufacturing high and medium voltage electric devices; 
- Manufacturing diesel engines with advanced techniques and technology; manufacturing 
dynamic and hydraulic machinery, parts and compressing machines; 
- Manufacturing automobile and motorcycle parts;  manufacturing and assembly of equipment, 
vehicles and machinery for construction; technical equipment for transportation; 
- Building ships; manufacturing equipment and part s for transportation ships and fishing ships; 
- Manufacturing communications and telecommunications equipment; 
- Manufacturing electronic and info rmatics equipment and components; 
- Manufacturing agricultural equipment, part s and machines, irrigation equipment; 
- Producing various types of materials for pesticides; 
- Producing basic chemicals of various kinds, purified chemicals and dyes; various kinds of 
specialised chemicals; 
- Producing materials for cleansing chemicals and additives for chemical industry; 
- Producing special cement, composite materials, and sound, electricity and heat insulating 
materials, and wood-substitute sy nthetic materials, fire-proof materials, construction plastic 
and fibreglass; 
- Manufacturing light construction materials; 
- Producing paper pulp; 
- Producing silk and fibres of various kinds; special fabric for industry; 
- Producing high-quality raw materials for manufa cturing footwear and garments for export; 
- Producing high-quality packages for exports; 
- Producing medical equipment for analytical a nd extractive technologies in medical sector; 
- Producing medicine materials; producing medi cines with international GMP standard; 
- Upgrading and developing energy sources; 
- Public passenger transportation; 
- Construction and upgrading of bridges, roads, airports, ports, railway stations, bus stations 
and railways; 
- Construction of water plants and water supply and drainage systems; 
- Construction and operation of infrastructure facilities of industrial zones, export processing 
zones and high-tech zones. WT/ACC/VNM/13/Add.1 
Page 58  
 
ANNEX 2
 
LIST OF FOREIGN-INVESTED  PROJECTS ELIGIBLE FOR  
SPECIAL INVESTMENT INCENTIVES 
(issued together with Decree No.24/2000/ND-CP dated 31 July 2000) 
- Producing, processing for export at least eighty (80) per cent of products; 
- Processing agricultural, forestry (except for wood) and aqua-culture products from domestic 
material sources for export of at least fifty (50) per cent of products; 
- Producing various kinds of new strains with high quality and high economic efficiency; 
- Cultivation of agricultural, forest ry and aqua-culture products; 
- Manufacturing new materials and precious and ra re materials; applying new bio-technology 
and new technology for manufacturing communications and telecommunications equipment; 
- High-tech industry; 
- Investment in research and development; 
- Producing equipment for waste treatment; 
- Producing materials for antibiotic drugs; 
- Treatment of pollution and protection of environment; treatment of waste; 
- Investment under BOT, BTO and BT contracts.   WT/ACC/VNM/13/Add.1 
 Page 59 
 
 
  ANNEX 3  
LIST OF AREAS OF SOCIO-ECONOMIC DISADVANTAGES AND 
SOCIO-ECONOMIC HARSH CONDITIONS 
(issued together with Decree No.24/2000/ND-CP dated 31 July 2000) 
No. Province/City Section A 
Areas with specially difficult socio-
economic conditions Section B 
Areas with difficult socio-economic 
conditions 
1. Ha Giang All districts and towns  
2. Cao Bang All districts and towns  
3. Lai Chau All districts and towns  
4. Lao Cai All districts and towns  
5. Son La All districts and towns  
6. Bac Kan All districts and towns  
7. Tuyen Quang All districts and towns  
8. Lang Son All districts and towns  
9. Yen Bai All districts and towns  
10. Thai Nguyen All districts and towns and Thai 
Nguyen City  
11. Bac Giang All districts and towns  
12. Vinh Phuc Lap Thach, Tam Duong and Binh 
Xuyen Districts Districts not in Section A 
13. Phu Tho All districts and towns and Viet Tri 
City   
14. Hoa Binh  All districts and towns  
15. Bac Ninh  Que Vo, Yen Phong, Gia Binh, Luong 
Tai and Thuan Thanh Districts  
16. Hanoi  Soc Son District 
17. Ha Tay  Ba Vi, My Duc, Phuc Tho, Quoc Oai, 
Thach That and Ung Hoa Districts 
18. Quang Ninh Ba Che, Binh Lieu, Quang Ha, Hoanh 
Bo, Tien Yen and Dong Trieu Districts and Mong Cai Town Yen Hung District and Cam Pha and 
Uong Bi Towns 
19. Hai Phong  Vinh Bao and Tien Lang Districts 
20. Hai Duong Chi Linh District All districts not in Section A 
21. Hung Yen  All districts and towns 
22. Thai Binh  All districts and towns 
23. Ha Nam  All districts and towns 
24. Nam Dinh  All districts and Nam Dinh City 
25. Ninh Binh Nho Quan, Yen Mo and Gia Vien 
Districts Tam Diep Town and districts not in 
Section A 
26. Thanh Hoa Lang Chanh, Thuong Xuan, Quan 
Hoa, Ba Thuoc, Ngoc Lac, Nhu Xuan, 
Cam Thuy, Thach Thanh, Quan Son and Muong Lat Districts Districts not in Section A 
27. Nghe An Ky Son, Tuong Duong, Con Cuong, 
Quy Chau, Que Phong, Quy Hop, 
Nghia Dan, Anh Son, Tan Ky, Thanh Chuong and Do Luong Districts Cua Lo Town and other districts not in 
Section A 
28. Ha Tinh All districts Ha Tinh Town 
29. Quang Binh All districts Dong Hoi Town 
30. Quang Tri Quang Tri Town and All districts Dong Ha Town 
31. Thua Thien Hue All districts Hue City WT/ACC/VNM/13/Add.1 
Page 60  
 
No. Province/City Section A 
Areas with specially difficult socio-
economic conditions Section B 
Areas with difficult socio-economic 
conditions 
32. Da Nang  Hoa Vang, Thanh Khe, Ngu Hanh Son 
and Lien Chieu Districts 
33. Quang Nam All districts and Hoi An Town Tam ky Town 
34. Quang Ngai All districts Quang Ngai Town 
35 Binh Dinh All districts Quy Nhon Town 
36. Phu Yen All districts Tuy Hoa Town 
37. Khanh Hoa Khanh Son and Khanh Vinh Districts District not in Section A 
38. Binh Thuan All districts Phan Thiet Town 
39. Ninh Thuan All districts Phan Rang Town 
40. Kon Tun All districts and towns  
41. Gia Lai All districts and towns  
42. Dak Lak All districts and Buon Ma Thuot City  
43. Lam Dong All districts and towns and Da Lat 
City  
44. Dong Nai Dinh Quan, Tan Phu and Xuan Loc 
Districts  
45. Binh Phuoc All districts and towns  
46. Binh Duong  Ben Cat, Phu Giao, Tan Uyen and 
Dau Tien districts 
47. Tay Ninh  All districts 
48. Ho Chi Minh City  Can Gio and Cu Chi Districts 
49. Ba Ria - Vung Tau  Long Dat and Xuyen Moc Districts 
50. Long An All districts Tan An Town 
51. Dong Thap All districts and towns  
52. Tien Giang All districts and towns My Tho City 
53. Ben Tre All districts and towns  
54. Vinh Long All districts and towns  
55. Tra Vinh All districts and towns  
56. An Giang All districts and Long Xuyen City  
57. Can Tho All districts and towns Can Tho City 
58. Soc Trang All districts and towns  
59. Bac Lieu All districts and towns  
60. Ca Mau All districts and towns  
61. Kien Giang All districts and towns   WT/ACC/VNM/13/Add.1 
 Page 61 
 
 
  ANNEX 4  
LIST OF BUSINESS FIELDS AND SECTORS ELIGIBLE FOR INVESTMENT 
INCENTIVES 
(issued together with Decree No.51/1999/ND-CP dated 8 July 1999) 
 
 Investment projects in branches and trades of the following domains shall be eligible for 
preferences: 
I. Afforestation and zoning for forest regener ation; planting of perennial trees on unused 
land, waste land or bare hills; virgin land reclamation; salt-making; aquaculture in 
unexploited water areas: 
1.  Planting protection forests (in headwaters or coastal areas, or for ecological protection), 
special purpose forests and production fo rests, zoning for forest regeneration; 
2.  Planting perennial trees (industrial trees. fr uit trees, pharmaceutical plants and other plants) 
on newly reclaimed or reus ed land and bare hills; 
3.  Making salt from sea water, explo iting rock-salt and producing industrial salt; 
4.  Raising aquatic animals in natural water areas  which have not been transformed and used yet; 
5. Land reclamation, making full use of unused land for agricultural, forestry and fishery 
production. 
II.  Infrastructure construc tion, development of public transportation; development of 
education and training, health care and national culture 
1.  Construction of technical infrastructure: 
- Building, renovating or expanding electric power plants; developing power networks, 
building establishments operated by so lar energy, wind power or bio-gas; 
- Building, improving, upgrading and modernizing bridges, roads, airports, harbors, 
railway and bus stations, building new railways; 
- Improving and developing information and communication networks; 
- Building water plants and water supply, and discharge systems; as well as projects for 
environmental protection and waste treatment; 
- Building technical infrastructure in densely populated areas (in the localities defined 
in Annex 5 or Annex 6). 
2.  Developing public transportation; 
3.  Developing education and training, health care and national culture; WT/ACC/VNM/13/Add.1 
Page 62  
 
- Opening people-funded schools and private schools at different levels: pre-school 
education, primary education, junior an d senior high education. professional 
secondary education, college and tertiary education; 
- Setting up vocational training establishments and establishments for raising workers' 
skills, fostering and raising their managerial skills and business knowledge; 
- Setting up people-funded and private medical establishments for medical examination 
and treatment, health care for the elderly and disabled people; 
- Setting up houses of national culture and art troupes; preserving, developing and 
popularizing national culture; making national musical instruments. 
4.  Investment projects in the forms of Build -Operate -Transfer (BOT); Build -Transfer-Operate 
(BTO) and Build-Transfer (BT) contracts. 
5. Investment in the construction of trade areas , department stores and dwelling houses to meet 
the urban population's demand. 
III.  Export goods production and trading  
Producing and trading in export goods and/or services with a value exceeding 30% of that of 
the goods and services produced and/or traded in by the enterprises in a fiscal year. 
IV.  Offshore fishing processing of agricult ural, forest and aquatic products; technical 
services directly for agricultural,  forestry and fishery production. 
1.  Offshore fishing; 2.  Processing of agricultural, forest and aquatic products; 
3.  Technical services directly for agricultural  production: soil preparation. watering and flood 
water drainage, cultivation, harvesting, protect ion and preservation of agricultural products; 
4.  Technical services directly for forestry: soil preparation, supply of seeds, saplings, watering 
and forest protection; 
5.  Technical services directly for fishery: stores for the preservation of aquatic products and 
salvage of offshore fishing ships and boats; 
6. Other services on plant and animal protection; hybridization and multiplication of new strains 
and breeds; storage and preservation of ag ricultural, forest and maritime products. 
V.  Scientific, technological research and deve lopment as well as services; consultancy on 
legal matters, investment, business, business administration, intellectual property right 
protection and technology transfer 
1.  Technological research and development; 
2.  Construction and exploitation of research institutions: laborator ies, experimental stations and 
farms, aimed at applying new technologies to production; 
3.  Applying and developing high technologies; producing and processing materials from 
domestic raw material sources:  WT/ACC/VNM/13/Add.1 
 Page 63 
 
 
  - Information technology: creating computer software for use in different domains of 
the economy; 
- Biological technologies, applied on industrial scale to the production of plant 
varieties, animal breeds, curative medicines for men, animals and plants, food for 
men and fodder for domestic animals, reproduction stimulants and biological 
fertilizers that meet the advanced economic-technical criteria; 
- Technologies for the production of ne w materials with special properties; 
- Technologies using solid, liquid and gas wastes; 
- Manufacturing technologies which consume le ss fuels, raw materials, materials or 
energy, or discharge less waste per pr oduct unit; technologies which create those 
products, that, when operating consume less energy, fuels, materials and raw materials, than other products of the same type; 
- Clean technologies, technologies that consume or produce equipment consuming 
wind power, solar, earth, tide or biological energy; 
- Technologies for the production of electronics, semiconductors and laser products. 
4.  Consultancy on legal matters, investment, bus iness, business administ ration and technology 
transfer: 
- Consultancy on investment, management and technology transfer, vocational training, 
training of technical and managerial skills; 
- Supply of market information, scientific, technical and technological information; 
- Intellectual property right and technology transfer; 
-  Marketing and trade promotion. 
VI.  Investment in the establishment of pro duction chains, business/production expansion 
and technology renovation; ecological and environmental improvement and sanitation 
in urban areas; relocation of producti on establishments out of urban areas; 
diversification of branches, trades and products. 
1.  Investment in the procurement of equipmen t in service of the cons truction of projects, 
investment in the construction of trade areas, department stores and dwelling houses to meet 
the urban population's demand. 
2.  Investment in the establishment of new workshops, installation of new production chains, 
addition of more machinery to the existing production chains and installation of new 
machinery and equipment in replacement of all machinery and equipment of the existing 
production lines; application of new technologies to production; 
3. Investment in ecological and environmental improvement; urban sanitation; 
4.  Investment in the relocation of production establishments from urban areas; 5. Investment in the diversification of branches, trades and products. WT/ACC/VNM/13/Add.1 
Page 64  
 
VII.  Other branches and trades whic h need to be developed with priority  
1.  Concentrated livestock and poultry breeding on an industrial scale; processing of feed for 
livestock and aquatic animals. 
2.  Mechanical engineering for manufacturing and repairing farm machines and machines for the 
production of textiles, leathers, high-quality pl astics', learning and teaching aids, children's 
toys and other products made of natural rubber; 
3.  Manufacturing, assembling and repairing machinery and equipment for the production and 
processing of agricultural, forest and aquatic products, measuring equipment for laboratories; 
manufacturing construction and mining equipment and means, building river and sea-going 
ships; manufacturing locomotives and car riages; manufacturing equipment for power 
transmission lines and transf ormer stations; manufacturing electronic components and 
computer software; 
4.  Production of raw materials, fuels and materi als; production of veterinary medicines, plant 
seeds and animal breeds; oil and gas exploration,  exploitation and refinery; coal exploitation 
and processing; steel refining and rolling; production of non-ferrous metals and construction 
materials; production of fertilizers and basic chemicals; 
5. Traditional crafts: carving, mother-of-pearl inlaying, lacquer ware, intaglio, wickerwork, 
carpet making, pottery, ceramics- silk weaving, bronze casting and hammering; 
6. Investment in the construction and business of infrastructure of industrial parks, export-
processing zones and hi-tech parks; as well as in the production and services therein.  WT/ACC/VNM/13/Add.1 
 Page 65 
 
 
  ANNEX 5  
LIST OF AREAS OF SOCIO-ECONOMIC DISADVANTAGES 
(issued together with Decree No.51/1999/ND-CP dated 8 July 1999) 
 
1. Districts in highly mountainous provinces 
1.  Bac Kan Province Bac Kan town 
2.  Cao Bang Province Cao Bang town 
3.  Ha Giang Province Bac Quang district 
Ha Giang town 
4.  Lai Chau Province Dien Bien Phu town 
Dien Bien district 
Lai Chau town 
5.  Son La Province Mai Son district 
Son La town 
Yen Chau district 
 
 
II. Districts in mountainous and plain areas 
1.  Bac Giang Province Luc Ngan district 
Luc Nam district 
Yen The district 
2.  Hoa Binh Province Kim Boi district 
Ky Son district 
Lac Son district 
Luong Son district Lac Thuy district 
Tan Lac district 
Yen Thuy district 
3.  Lang Son Province Bac Son district 
Cao Loc district 
Chi Lang district 
Huu Lung district Loc Binh district 
Trang Dinh district 
Van Lang district 
Van Quan district 
4.  Phu Tho Province Doan Hung district 
Ha Hoa district 
Song Thao district 
Thanh Ba district 
Tam Thanh district 
5.  Quang Ninh Province Hoanh Bo district WT/ACC/VNM/13/Add.1 
Page 66  
 
Hai Ninh district 
Quang Ha district 
Tien Yen district 
Van Don district 
6.  Tuyen Quang Province Ham Yen district 
Son Duong district 
Yen Son district 
7.  Thai Nguyen Province Dong Hy district 
Dai Tu district 
Dinh Hoa district 
Phu Luong district 
8.  Yen Bai Province Tran Yen district 
Van Yen district Van Chan district Yen Binh district 
9.  Binh Phuoc Province Dong Phu district 
Loc Ninh district 
Phuoc Long district 
Binh Long district 
10.  Dac Lak Province Buon Don district 
Cu Jut district 
Cu M’gar district 
Dak R’Lap district Dak Mil district Ea H’leo district 
Ea Kar district 
Ea Sup district 
Krong Pac district 
Krong Buk district Krong Bong district Krong Ana district 
Krong Nang district 
Lak district 
M’Drak district 
11.  Gia Lai Province An Khe district 
Ayun Pa district 
Chu Se district 
Chu Prong district 
Chu Pah district 
Ia Grai district 
12.  Kon Tum Province Dak Ha district 
Kon Tum town 
Ngoc Hoi district 
13.  Lam Dong Province Bao Lam district 
Cat Tien district 
Di Linh district 
Da Teh district 
Don Duong district Duc Trong district Da Huoai district 
Lam Ha district 
14.  Binh Thuan Province Bac Binh district 
Duc Linh district  WT/ACC/VNM/13/Add.1 
 Page 67 
 
 
  Ham Thuan Bac district 
Tanh Linh district 
15.  Binh Dinh Province Hoai An district 
16.  Hai Duong Province Chi Linh district 
 
17.  Ha Tinh Province Huong Khe district 
Huong Son district  
18.  Ninh Binh Province Tam Diep town 
Nho Quan district  
19.  Nghe An Province Anh Son district 
Nghia Dan district 
Tan Ky district Thanh Chuong district 
 
20.  Ninh Thuan Province Ninh Hai district 
 
21.  Phu Yen Province Dong Xuan district 
Song Hinh district 
22.  Quang Tri Province Dak Rong district 
23.  Quang Nam Province Hiep Duc district 
Tien Phuoc district 
24.  Quang Ngai Province Minh Long district 
25.  Thanh Hoa Province Cam Thuy district 
Nhu Thanh district 
Ngoc Lac district 
Thach Thanh district 
26.  Thua Thien Hue Provin ce Nam Dong district 
27.  An Giang Province An Phu district 
Tri Ton district 
Tinh Bien district 
28.  Bac Lieu Province Bac Lieu town 
Vinh Loi district 
29.  Ca Mau Province Thoi Binh district 
Tran Van Thoi district 
30.  Dong Nai Province Dinh Quan district 
Tan Phu district 
Xuan Loc district 
Long Khanh district 
31.  Kien Giang Province Chau Thanh district 
Hon Dat district 
32.  Khanh Hoa Province Van Ninh district 
Cam Ranh district 
33.  Soc Trang Province Long Phu district 
My Xuyen district 
Soc Trang district 
34.  Tra Vinh Province Cau Ngang district 
Cau Ke district Tieu Can district 
 WT/ACC/VNM/13/Add.1 
Page 68  
 
ANNEX 6
 
LIST OF AREAS OF SOCIO-ECONOMIC HARSH CONDITIONS 
(issued together with Decree No.51/1999/ND-CP dated 8 July 1999) 
 
I. Districts in highly mountainous and islands areas 
1.  Bac Kan Province Ba Be district 
Bach Thong district 
Cho Moi district 
Cho Don district 
Ngan Son district 
Na Ri district 
2.  Cao Bang Province Bao Lac district 
Ha Lang district 
Ha Quang district 
Hoa An district 
Nguyen Binh district 
Quang Hoa district 
Thong Nong district Tra Linh district Thach An district 
Trung Khanh district 
3.  Ha Giang Province Bac Me district 
Dong Van district 
Hoang Su Phi district 
Meo Vac district 
Quan Ba district 
Vi Xuyen district 
Xin Man district 
Yen Minh district 
4.  Lai Chau Province Muong Lay district 
Muong Te district 
Phong Tho district 
Tua Chua district 
Tuan Giao district Sin Ho district Dien Bien Dong district 
5.  Lao Cai Province Bac Ha district 
Bat Sat district Muong Khuong district 
Than Uyen district 
Van Ban district 
Sa Pa district 
Bao Yen district  WT/ACC/VNM/13/Add.1 
 Page 69 
 
 
  6.  Son La Province Bac Yen district 
Moc Chau district 
Muong La district 
Quynh Nhai district 
Thuan Chau district Song Ma district 
Phu Yen district 
7.  Binh Thuan Province Phu Quy district 
8.  Ba Ria – Vung Tau Province Con Dao district 
9.  Da Nang City Hoang Sa island district 
10.  Hai Phong City Bach Long Vi district 
Cat Hai district 
11.  Khanh Hoa Province Truong Sa district 
12.  Kien Giang Province Kien Hai district 
Phu Quoc district 
13.  Quang Ninh Province Co To district 
14.  Quang Ngai Province Ly Son district 
 
 WT/ACC/VNM/13/Add.1 
Page 70  
 
II. Districts in mountainous and plain areas 
 
1.  Bac Giang Province Son Dong district 
2.  Hoa Binh Province Da Bac district 
Mai Chau district 
3.  Lang Son Province Binh Gia district 
Dinh Lap district 
4.  Phu Tho Province Thanh Son district 
Yen Lap district 
5.  Quang Ninh Province Ba Che district 
Binh Lieu district 
6.  Tuyen Quang Province Chiem Hoa district 
Na Hang district 
7.  Thai Nguyen Province Vo Nhai district 
8.  Yen Bai Province Luc Yen district 
Mu Cang Chai district 
Tram Tau district 
9.  Dak Lak Province Dak Nong district 
Krong No district 
10.  Gia Lai Province Duc Co district 
K Bang district 
Krong Pa district 
Kon Chro district 
Mang Yang district 
11.  Kon Tum Province Dak To district 
Dak Glei district Kon Plong district Sa Thay district 
12.  Lam Dong Province Lac Duong district 
13.  Kien Giang Province An Bien district 
Go Quao district 
Vinh Thuan district 
14.  Soc Trang Province My Tu district 
Thanh Tri district Vinh Chau district 
15.  Tra Vinh Province Chau Thanh district 
Tra Cu district 
16.  Binh Dinh Province An Lao district 
Vinh Thanh district 
Van Canh district 
17.  Khanh Hoa Province Khanh Vinh district 
Khanh Son district 
18.  Ninh Thuan Province Ninh Son district 
19.  Ba Ria-Vung Tau Province Tan Thanh district 
20.  Bac Lieu Province Hong Dan district 
21.  Binh Phuoc Province Bu Dang district 
22.  Ca Mau Province U Minh district 
23.  Thanh Hoa Province Quan Hoa district 
Ba Thuoc district 
Lang Chanh district 
Thuong Xuan district 
Quan Son district  WT/ACC/VNM/13/Add.1 
 Page 71 
 
 
  Muong Lat district 
Nhu Xuan district 
24.  Nghe An Province Ky Son district 
Tuong Duong district 
Con Cuong district 
Que Phong district 
Quy Hop district 
Quy Chau district 
25.  Quang Binh Province Minh Hoa district 
Tuyen Hoa district 
26.  Quang Tri Province Huong Hoa district 
27.  Thua Thien – Hue Province A Luoi district 
28.  Quang Nam Province Hien district 
Giang district Phuoc Son district 
Tra My district 
29.  Quang Ngai Province Ba To district 
Tra Bong district 
Son Tay district 
Son Ha district 
30.  Phu Yen Province Son Hoa district 
 
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