G/SCM/N/155/VNM  
 
13 March 2013  
(13-1378)  Page: 1/58  
Committee on Subsidies and Countervailing Measures 
 Original: English  
 
SUBSIDIES 
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI.1 OF THE GATT 1994 AND 
ARTICLE 25 OF THE AGREEMENT ON SUBSIDIES AND COUNTERVAILING MEASURES 
VIET NAM 
The following communication, dated 4 March 2013, is being circulated at the request of the 
Delegation of Viet Nam. 
 
_______________ 
 
 
The following notification provides details of support programmes for the period 2005-2007. It 
serves as a full and updated notification for subsid ies effective during the notified period, inclusive 
of both new (if any) and previously notified pr ogrammes. This notification may be supplemented, 
in due time, to incorporate further elements or clarifications. 
 In this notification, Viet Nam has included certain measures which may not constitute "subsidies" 
under Article 1 of the Agreement on Subsidies and Countervailing measures ("the Agreement" 
hereinafter) and certain subsidies which may not be "specific" under Article 2 of the Agreement in order to achieve the maximum transparency wi th respect to the relevant programmes and 
measures effective within its territory during the notified period. 
   G/SCM/N/155/VNM 
 
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  TABLE OF CONTENTS  
 
1   PREFERENTIAL IMPORT TARIFF RATES CONTINGENT UPON LOCALISATION 
RATIOS WITH RESPECT TO  PRODUCTS AND PARTS OF MECHANICAL-ELECTRIC-
ELECTRONIC INDUSTRIES (UPDATING PROGRAMME II OF NOTIFICATION ON 
SUBSIDIES PERIOD  2003-2004) ...................................................................................... 4  
2   SUPPORT FOR THE IMPLEMENTATION OF PROJECTS MANUFACTURING 
PRIORITY INDUSTRIAL PRODUCTS (UPDATING PROGRAMME III OF THE 
NOTIFICATION ON SUBSIDIES PERIOD 2003-2004) ........................................................ 5  
3   INVESTMENT INCENTIVES CONTIN GENT UPON EXPORT PERFORMANCE FOR 
DOMESTIC BUSINESSES (UPDATING PROGRAMME IV OF THE NOTIFICATION ON 
SUBSIDIES PERIOD  2003-2004) ...................................................................................... 6  
4   OTHER INVESTMENT INCENTIVES FOR DOMESTIC BUSINESSES (UPDATING 
G PROGRAMME V ON NOTIFICATION ON  SUBSIDIES PERI OD 2003-2004) ...................... 9  
5   INVESTMENT INCENTIVES CONTIN GENT UPON EXPORT PERFORMANCE FOR 
FOREIGN-INVESTED ENTERPRISES (U PDATING PROGRAMME VI OF THE 
NOTIFICATION ON SUBSIDIES PERIOD 2003-2004) ...................................................... 13  
6   OTHER INVESTMENT INCENTIVES FOR FOREIGN-INVESTED ENTERPRISES 
(UPDATING PROGRAM VII OF THE NOTIFICATION ON SUBSIDIES PERIOD 2003-2004) ......................................................................................................................... .... 15
 
7   PREFERENTIAL INVESTMENT CREDIT FOR DEVELOPMENT CONTINGENT UPON 
EXPORT CRITERIA (UPDATING PROGRA MME VIII OF THE NOTIFICATION ON 
SUBSIDIES PERIOD  2003-2004) .................................................................................... 18  
8   PREFERENTIAL DEVELOPMENT CREDIT FOR INVESTMENT CONTINGENT UPON 
LOCALISATION RATIOS (UPDATING PROGRAM IX OF THE NOTIFICATION OF 
SUBSIDIES PERIOD  2003-2004) .................................................................................... 21  
9   OTHER PREFERENTIAL INVESTMENT CREDIT FOR DEVELOPMENT (UPDATING 
PROGRAM X OF NOTIFICATION OF SUBSIDIES PERIOD  2003-2004) ............................. 23  
10   EXPORT PROMOTION (UPDATING PROGRAM XII OF THE SCM 
NOTIFICATION 2003-2004) ........................................................................................... 27  
11   TRADE PROMOTION (UPDATING PROG RAM XIII OF THE NOTIFICATION ON 
SUBSIDIES PERIOD  2003-2004) .................................................................................... 28  
12   SUPPORT FOR MECHANICAL PRODUC TS (UPDATING PROGRAM XIV OF THE 
NOTIFICATION ON SUBSIDIES PERIOD 2003-2004) ...................................................... 29  
13   SUPPORT FOR SHIPBUILDING INDUSTRY (UPDATING PROGRAMME XV OF 
THE NOTIFICATION ON SUBSID IES PERIOD 20 03-2004)............................................... 30  
14   ASSISTANCE FOR COMMERCIAL DEVELOPMENT IN MOUNTAINOUS, ISLAND 
AND ETHNIC MINORITY AREAS (UPDATING PROGRAMME XVI OF THE 
NOTIFICATION ON SUBSIDIES PERIOD 2003-2004) ...................................................... 32  
15   ASSISTANCE TO ENTERPRISES FACING DIFFICULTIES DUE TO OBJECTIVE 
REASONS (UPDATING PROGRAMME XVII OF THE NOTIFICATION ON SUBSIDIES 
PERIOD 2003- 2004) ...................................................................................................... 34  
16   INCENTIVES FOR INVESTMENT PR OJECTS IN SCIENCE AND TECHNOLOGY 
(UPDATING PROGRAMME XVIII OF THE NO TIFICATION ON SUBSIDIES PERIOD 
2003-2004) .................................................................................................................... 35  
ANNEX I ....................................................................................................................... .. 37 
ANNEX II ...................................................................................................................... . 39 
ANNEX III ..................................................................................................................... . 42 
ANNEX IV ...................................................................................................................... . 45 
ANNEX V ....................................................................................................................... . 47 G/SCM/N/155/VNM 
 
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  ANNEX VI ...................................................................................................................... . 48 
ANNEX VII .....................................................................................................................  49 
ANNEX VIII ....................................................................................................................  51 
ANNEX IX ...................................................................................................................... . 53 
ANNEX X ....................................................................................................................... . 56 
 G/SCM/N/155/VNM 
 
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  1  PREFERENTIAL IMPORT TARIFF RATES CO NTINGENT UPON LOCALISATION RATIOS 
WITH RESPECT TO PRODUCTS AND PARTS OF MECHANICAL-ELECTRIC-ELECTRONIC 
INDUSTRIES (UPDATING PROGRAMME II OF NOTIFICATION ON SUBSIDIES PERIOD 2003-2004) 
1. Title of the program 
 
Preferential import tariff rates contingent upon localization ratios with respect to products and 
parts of mechanical-electric-electronic industries.  
 2. Policy objective and/or purposes of the program 
 
To encourage domestic production and assembly of products and parts of mechanical-electric-
electronic industries.  
3. Background and authority for the program 
 
a. Background 
 
- Inter-Ministerial Circular No.176/1998/TTLT-BTC-BCN-TCHQ dated 25 December 1998 and 
No.120/2000/TTLT- BTC-BCN-TCHQ dated 25 Decemb er 2000 of Ministry of Finance, Ministry 
Industry and General Department of Customs guiding the implementation of tariff imposition 
contingent upon localization ratios with respect to products and parts of mechanical-electric-
electronic industries;  
- Decision No.1944/1998/QD-BTC dated 25 December 1998 promulgating the regulation on 
preferential import tariff rates contingent upon localization ratios with respect to parts of mechanical-electric-electronic industries.  
 
- Decision No.43/2006/QD-BTC dated 29 August  2006 abolishing programmes of preferential 
import tariff rates contingent upon localization ratios with respect to products and parts of mechanical-electric-electronic industries. 
 
b. Authority 
 
- Ministry of Industry (Ministry of Industry and Trade since 1 August 2007); 
- Ministry of Finance. 
 
4. Form of the subsidy 
 
- From January 2005 to 30 September 2006: preferential import tariff rates contingent upon 
localization ratios. 
- From 01 October 2006: Termination of preferential treatment. 
 5. To whom and how the subsidy is provided 
 As described in Programme I of the document WT/ACC/VNM/13/Add.2.  
6. Subsidy per unit 
 
Specific statistics data are not available.  
7. Duration of the subsidy 
 
From 1 January 2005 – 1 October 2006. 
 
8. Statistic data permitting an assessment of the trade effects of the subsidy 
 
Unfeasible. G/SCM/N/155/VNM 
 
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  2  SUPPORT FOR THE IMPLEMENTATION OF  PROJECTS MANUFACTURING PRIORITY 
INDUSTRIAL PRODUCTS (UPDATING PROGRAMME III OF THE NOTIFICATION ON SUBSIDIES PERIOD 2003-2004) 
1. Title of the program 
 
Support for the implementation of projects manufacturing priority industrial products. 
 
2. Policy objective and/or purposes of the program 
 
To support the implementation of projects manufacturing priority industrial products.  
3. Background and authority for the program 
 
a. Background 
 
- Decision No.11/2000/QD-CP dated 31 July 2000 of the Government on some measures 
guiding the socio-economic planning for the last 6 months of 2000; 
- Decision No.117/2000/QD-TTg dated 10 Octo ber 2000 of the Prime Minister on some 
financial policies and mechanism for shipbuilding projects of the Vietnamese shipbuilding industry;  
- Decision No. 67/2000/QD-BCN dated 20 November  2000 of the Ministry of Industry on 
issuing the list of mechanical products entitled to incentives according to the Resolution 
No.11/2000/NQ-CP dated 31 July 2000 of the Government; 
- Decision No.37/2000/QD-TTg dated 24 March 2000 and Decision No.19/2001/QD-TTg dated 
20 February 2001 of the Prime Minister promulgating the policy of assistance to the 
development of key industrial products (applicable to ships of 11,500 tons, internal combustion engines under 30 HP and colour TV sets); 
- Circular No.86/2000/TT-BTC dated 16 August 2000 of the Ministry of Finance;  
- Circular No.03/2000/TT-BCN dated 31 May 2000 of the Ministry of Industry;  
- Circular No.04/2001/TT-BCN dated 6 June 2001 of the Ministry of Industry. 
 
b. Authority 
 - Ministry of Finance; 
- Ministry of Industry (Ministry of Industry and Trade since 1 August 2007); 
- Ministry of Transport; 
- Development Assistance Fund (Vietnam Development Bank since 19 May 2006). 
 
4. Form of the subsidy 
 
- Preferential corporate income tax rates; 
- Preferential loans; 
- Reduction of land rental. 
 
5. To whom and how the subsidy is provided 
 
As described in Programme II of the document WT/ACC/VNM/13/Add.2. 
 
6. Subsidy per unit, or in case where this is not possible, the total amount or the annual 
amount budgeted for the subsidy 
 
Specific statistics data are not available. 
 7. Duration of the subsidy 
 1/2005 – 12/2007  
8. Statistic data permitting an assessment of the trade effects of the subsidy 
 
Unfeasible. G/SCM/N/155/VNM 
 
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  3  INVESTMENT INCENTIVES CONTINGE NT UPON EXPORT PERFORMANCE FOR 
DOMESTIC BUSINESSES (UPDATING PROGRAMME IV OF THE NOTIFICATION ON SUBSIDIES PERIOD 2003-2004)  
1. Title of the program 
 
Investment incentives for domestic exporting enterprises.  
2. Background and authority for the program 
 
To encourage domestic investment on manufacturing and trading goods for export.   
3. Background and authority for the program 
 
a. Background 
 
- Law on Domestic Investment Promotion (amended) No.03/1998/QH10 dated 20 May 1998 and legal documents guiding the implementation of this Law (Decrees No.51/1999/ND-CP dated 
8 July 1999 and No.35/2002/ND-CP dated 29 March 2002);  
- Law on Corporate Income Tax No.09/2003/QH11 dated 17 June 2003 (effective since 
1 January 2004) and legal documents guiding th e implementation of this Law (Decrees 
No.164/2003/ND-CP dated 22 December 2003 and No.152/2004/ND-CP dated 6 August 2004);  
- Land Law 2003; 
- Law on Investment effective since 1 July 2006, replacing Law on Domestic Investment 
Promotion 1998; 
- Decree No.74/CP dated 25 October 1993 of the Government stipulating in details the 
implementation of the Law on Agricultural Land-use Tax;  - Decree No.94/CP dated 25 August 1994 of the Government stipulating in details the 
implementation of the Ordinance on House and Land Tax and the Ordinance supplementing some 
articles of the Ordinance on House and Land Tax;  - Decree No.198/2004/ND-CP dated 3 December 2004 of the Government on the land-use 
payment;  
- Decree No.142/2005/ND-CP dated 14 November 2005 of the Government on collecting land 
and water-surface rent; 
- Decree No. 108/2006/ND-CP dated 22 September 2006 guiding in details the 
implementation of the abolished Law on Investment (Article 88): 
+ Decree No.51/1999/ND-CP dated 8 July 1999 guid ing in details the implementation of Law 
on Domestic Investment Promotion (amended);  
+ Decree No.35/2002/ND-CP dated 29 March 2002 on amending and supplementing Lists A, 
B and C issued in the Appendix to the Decree No.51/1999/ND-CP; and 
+ List of sectors and geographical areas entitled to special investment incentives issued with 
Decree No. 164/2003/ND-CP dated 22 December 2003 guiding in details Law on Corporate 
Income Tax; Decree No. 152/2004/ND-CP amending  and supplementing a number of Articles 
in the Decree No.164/2003/ND-CP; 
+ List of sectors and geographical areas entitled to special investment incentives issued with 
Decree No.149/2005/ND-CP dated 8 December 2005 guiding in details the implementation of 
Law on export and import duties. 
- Decree No.149/2005/ND-CP dated 8 December 2 005 guiding in details the implementation 
of Law on export and import duties abolished Article 26.1 of the Decree No.51/1999/ND-CP dated 
8 July 1999.   b. Authority: 
 
- Ministry of Planning and Investment; 
- Ministry of Finance. 
 
4. Form of the subsidy: 
 
- Exemption from and reduction of land use payment; 
- Exemption from and reduction of land rental; 
- Exemption from and reduction of land use tax; 
- Preferential corporate income tax treatment; G/SCM/N/155/VNM 
 
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  - Exemption from import duties in respect of the equipment, machinery imported to form fixed 
assets of an enterprise.  
5. To whom and how the subsidy is provided:  
 
5.1. Beneficiary: Projects having the export ratio of over 30% of the total outputs in a financial 
year (Item I, List A, Decree No.35/2002) 
 
a. Exemption from and reduction of land use payment 
 - From January 2005 – 24 October 2006:  Investors are entitled to reduction of 50% for land 
use payment in case investors have to make payment for the land allocated by the State and used 
to implement projects of manufacturing and trad ing goods to meet the above export criteria. 
Especially, investors are fully exempted from land use payment if their projects are carried out in a 
region with difficult socio-economic conditions as listed in Annex III1 of this Notification. 
 - From 25 October 2006: The above preferences were eliminated.  
 
b. Exemption from and reduction of land rental  
- From January 2005 – 24 October 2006 : Investors are exempted from land rent for the 
period from 3 to 6 years from the time of signing the land rent contract in case investors are 
rented by the State to implement projects of manufacturing and trading goods to meet the above export criteria. Investors are exempted from land  rent for the period from 11 to 13 years and the 
whole life of the project in case the project is carried out in a region with difficult socio-economic 
conditions and special difficult socio-economic conditions respectively as listed in Annex III and IV2 of this Notification. 
 
- From 25 October 2006 : The above preferences were eliminated. 
 
c. Exemption from and reduction of land use tax: 
 
- From January 2005 – 24 October 2006:  Investors are exempted from land use tax for the 
period from 7 to 15 years, subject to particular conditions, from the time of being allocated by the 
State in case their project meet the above export  criteria and is implemented in a region with 
difficult socio-economic conditions as listed in Annex III of this Notification. Investors are exempted from land use tax for the whole life of th e project in case the project is carried out in a 
region with especially difficult socio-economic conditions as listed in Annex IV of this Notification. 
 - From 25 October 2006:  The above preferences were eliminated. 
 
d. Preferential treatment regarding corporate income tax
3:  
 
- From January 2005 – 24 October 2006:  
 + Corporate income tax rate of 25%; 
 + Corporate income tax rate of 20% in case the project is carried out in a region with 
difficult socio-economic conditions as listed in Annex III of this Notification; 
 + Corporate income tax rate of 15% in case the project is carried out in a region with 
especially difficult socio-economic conditions as listed in Annex IV of this Notification. 
 - From 25 October 2006 : The above preferences were eliminated. 
 
e. Exemption from import duties in respect of the equipment, machinery imported to 
form fixed assets: 
 
                                               
1 List of geographical areas with difficult socio-economic conditions pursuant to 
Decree No.164/2003/ND-CP dated 22 December 2003. 
2 List of geographical areas with especially difficult socio-economic conditions pursuant to 
Decree No.164/2003/ND-CP dated 22December 2003. 
3 Standard corporate income tax rate was 32%  pursuant to the Law on Corporate Income 
Tax No.03/1997/QH9. G/SCM/N/155/VNM 
 
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  - From January 2005 – 24 October 2006 : Exemption from import duties in respect of the 
following goods which are not yet produced domestically, or which are produced domestically but do not meet the requirements: 
+ Equipment, machinery, or specialized means of transportation of a technological line used 
t o  f o r m  f i x e d  a s s e t s  o f  a n  e n t e r p r i s e  o r  t o  e x p a n d  t h e  s c a l e  o f  i n v e s t m e n t  a n d  t o  
renovate technology; 
+ Means of transportation used for transporting employees. 
 
- From 25 October 2006 : The above preferences were eliminated. 
 5.2 Beneficiary: Projects having the export ratio of over 50% of the total outputs in a financial 
year (Item III, List A, Decree No.164/2003) 
 - From January 2005 – 24 October 2006: 
 
a. Exemption from and reduction of land use payment: same incentives as described in 
section 5.1.a. 
 
b. Exemption from and reduction of land rental: same incentives as described in 
section 5.1.b.  
c. Exemption from and reduction of land use tax: same incentives as described in 
section 5.1.c.  
d. Preferential treatment regarding corporate income tax: 
+ Corporate income tax rate of 20% for the period of 10 years as from the date of 
commencement of business operations; 
+ Corporate income tax rate of 15% for the period of 12 years in case the project is carried 
out in a region with difficult socio-economic conditions as listed in Annex III of this Notification;  
+ Corporate income tax rate of 10% for the period of 15 years in case the project is carried 
out in a region with especially difficult socio-economic conditions as listed in Annex IV of 
this Notification;  
+ Corporate income tax rate of 10% for the period of 15 years for newly established 
processing businesses whether or not the project is carried in the export processing zone. 
 
e. Exemption from import duties in respect of the equipment, machinery imported to 
form fixed assets: same incentives as described in section 5.1.e. 
 - From 25 October 2006: The above preferences were eliminated. 
 
6. Subsidy per unit: 
 
Specific statistics data are not available. 
 
7. Duration of the subsidy: 
 
Specified in item 5 above. 
 8. Statistic data permitting an assessment of the trade effects of the subsidy: 
 
Unfeasible. G/SCM/N/155/VNM 
 
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  4  OTHER INVESTMENT INCENTIVES FOR DOMESTIC BUSINESSES (UPDATING 
G PROGRAMME V ON NOTIFICATION ON SUBSIDIES PERIOD 2003-2004) 
1. Title of the program: 
 
Investment incentives for domestic enterprises operating in industries and business sectors and/or 
implementing projects in regions where investment s are encouraged that are not contingent upon 
either export performance or the use of domestic over imported goods. List of industries, sectors 
and geographical areas entitled to special investment incentives (regions of difficult and especially 
difficult socio-economic conditions) included in Annex I4, II5, III and IV of this Notification. 
 2. Policy objective and/or purposes of the program: 
 To encourage domestic investment in industries, business sectors and geographical areas where investments are beneficial to the country. 
 
3. Background and authority for the program: 
 
a. Background: 
 
- Law on Domestic Investment Promotion (amended) No.03/1998/QH10 dated 20 May 1998 and legal documents guiding the implementation of this Law (Decrees No.51/1999/ND-CP dated 
8 July 1999 and No.35/2002/ND-CP dated 29 March 2002);  
- Law on Corporate Income Tax No.09/2003/QH11 dated 17 June 2003 (effective since 1 January 2004) and legal documents guiding the implementation of this Law 
(Decrees No.164/2003/ND-CP dated 22 December 2003 and No.152/2004/ND-CP dated 
6 August 2004);  - Law on Investment effective since 1 July 2006, replacing Law on Domestic Investment 
Promotion 1998; 
- Decree No. 108/2006/ND-CP dated 22 September 2006 guiding in details the implementation of the abolished Law on Investment: 
+ Decree No.51/1999/ND-CP dated 8 July 1999 detailing the implementation of Law on 
Domestic Investment Promotion (amended); 
 + Decree No.35/2002/ND-CP dated 29 March 2002 on amending and supplementing List A, 
B and C issued in the Appendix to the Decree No.51/1999/ND-CP;  
 + List of sectors and geographical areas entitled to special investment incentives issued 
with Decree No. 164/2003/ND-CP dated 22 December 2003 guiding in details the Law on Corporate Income Tax; Decree No. 152/200 4/ND-CP amending and supplementing a 
number of Articles in the Decree No.164/2003/ND-CP; 
 + List of sectors and geographical areas entitled to special investment incentives issued 
with Decree No.149/2005/ND-CP dated 8 December 2005 detailing the implementation of the Law on Export and Import Duties. 
- Decree No.142/2005/ND-CP dated 14 Novemb er 2005 of the Government on exemption 
from and reduction of land, water surface rental (effective from 10 December 2005); - Decree No.198/2004/ND-CP dated 3 December 2004 of the Government on land use 
payment (effective from 24 December 2004). 
 
b. Authority: 
 
- Ministry of Planning and Investment; - Ministry of Finance.  
4. Form of the subsidy: 
 
- Exemption from and reduction of land use payment; 
- Exemption from and reduction of land and water surface rental; 
- Exemption from and reduction of land use tax; 
                                               
4 List of industries and business sectors entitled to  preferential corporate inco me tax treatment pursuant 
to Decree No. 164/2003/ND-CP dated 22 December 2003 
5 List of industries and business sectors entitled to domestic investment incentives pursuant to Decree 
No.35/2003/ND-CP dated 29 March 2002 G/SCM/N/155/VNM 
 
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  - Preferential corporate income tax treatment; 
- Exemption from import duties in respect of the equipment, machinery imported to form 
fixed assets of an enterprise. 
 
5. To whom and how the subsidy is provided: 
 
- From 1/2005 – 24 October 2006: 
Beneficiaries:  Domestic investors doing projects: 
(i) in the industries or business sectors listed in Annex I or Annex II of this Notification, 
and/or 
(ii) in the regions of difficult socio-economic conditions as listed in Annex III of this 
Notification or regions of special difficult socio-economic conditions as listed in Annex 
IV of this Notification. 
 
- From 25 October 2006 :  
Beneficiaries:  Investors implementing projects, including expanding investment projects in 
the industries and geographical areas entitled to investment incentives as indicated in Annex IX6 of 
this Notification are allowed to enjoy incentives as stipulated in the Law on Investment and 
relevant regulations.  
How investment incentives are granted: 
 
a. Exemption from and reduction of land use payment:  
Investors are entitled to exemption from land use payment if implementing projects:  
 + in the industries or business sectors listed in Annex II of this Notification and in the 
regions listed in Annex III of this Notification;  
 + In the regions listed in Annex IV of this Notification.  
  Investors are entitled to:  + 50% reduction of land use payment in case of implementing projects in the industries or 
business sectors listed in Annex II of this Notification;  
 + 75% reduction of land use payment the projec ts are implemented in the regions listed in 
Annex III of this Notification.  
 
b. Exemption from and reduction of land and water surface rental:  Exemption from land 
and water surface rental for the period from 3 to 15 years from the date of signing of the land 
lease contract, depending on the industries, business sectors, and the number of workers 
employed and the region; exemption for the whole du ration of the project if the project is carried 
out in a business sector eligible for domestic investment incentives as listed in Annex II of this Notification and in a region of especially difficult socio-economic conditions as listed in Annex IV of 
this Notification. 
 
c. Exemption from and reduction of land use tax:  Reduction of 50% of land use tax for a 
period of 7 years or exemption from land use tax for a period from 7 to 15 years depending on the 
industries, business sectors, location of th e project and the number of workers employed; 
exemption for the whole duration of the project wh ere business sectors are eligible for domestic 
investment incentives as listed in Annex II of this Notification and in a region with especially 
difficult socio-economic conditions as listed in Annex IV of this Notification.  
 
d. Preferential corporate income tax: 
 
- From 1 January 2005
7 - 24 October 2006 : 
 + 20% for the period of 10 years as from the date of commencing business operations if 
the investment is made in industries or business sectors listed in Annex I of this 
Notification or in a region of difficult socio-economic conditions listed in Annex III of this Notification; 
                                               
6 List of industries and business sectors eligible for investment incentives pursuant to the Decree 
No.108/2006/ND-CP dated 22 September 2006. 
7 Standard corporate income tax rate is 28% as from 1 January 2004 pursuant to the Law on Corporate 
Income Tax No.09/2003/QH11.  G/SCM/N/155/VNM 
 
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   + 15% for the period of 12 years as from the date of commencing business operations if 
the investment is made in the industries or business sectors listed in Annex I and in a region of difficult socio-economic conditions listed in Annex III of this Notification or the project is implemented in a region of especially difficult socio-economic conditions listed 
in Annex IV of this Notification; 
 + 10% for the period of 15 years as from the date of commencing business operations if 
the investment is made in industries or business sectors as listed in Annex I of this 
Notification and in a region of especially difficult socio-economic conditions listed in 
Annex IV of this Notification; 
 - From 25 October 2006:  
 ( i) Preferential corporate income tax rate: 
 + 20% for the period of 10 years as from the date of commencing business operations for: 
(i) co-operatives operating in regions neither specified in the list of geographical areas 
with difficult socio-economic conditions nor in the list of geographical areas with 
especially difficult socio-economic as listed in Annex X
8 of this Notification; (ii) newly 
established enterprises from investment projects in the sectors eligible to investment 
incentives as listed in Annex IX of this Notification; (iii) newly established enterprises 
from investment projects in the regions indicated in the list of geographical areas with difficult socio-economic conditions as listed in Annex X of this Notification;  
 + 15% for the period of 12 years as from the date of commencing business operations for: 
(i) co-operatives operating in regions in the list of geographical areas with difficult socio-
economic conditions as listed in Annex X of this Notification; (ii) newly established enterprises from investment projects in the sectors and business areas eligible to 
investment incentives as listed in Annex IX of this Notification and implemented in the 
regions with difficult socio-economic conditions as listed in Annex X of this Notification;  
 + 10% for the period of 15 years as from the date of commencing business operations for: 
(i) co-operatives and newly established enterprises from investment projects 
implemented in regions specified in the list of geographical areas with especially difficult socio-economic conditions as listed in Annex X of this Notification; (ii) newly established enterprises from investment projects in the industries and business sectors eligible to 
special investment incentives as listed in Annex VIII
9 of this Notification; 
  The Ministry of Finance shall propose to th e Prime Minister for his approval to apply the 
corporate income tax rate of 10% for the whole duration of a project in case the newly 
established enterprises from investment projects in the industries or business sectors 
eligible for special investment incentives as listed in Annex VIII of this Notification, which can make high impacts on the country’s economy and society. 
 (ii) Duration for exemption from and reduction of corporate income tax :  
 + Exemption from corporate income tax for th e period of 2 years since the first profit-
making year and 50% reduction of corporate income tax for the 2 subsequent years in 
case of newly established enterprises from investment projects and movement of 
businesses from urban areas in accordance with a plan approved by competent 
authorities; 
 + Exemption from corporate income tax for th e period of 2 years since the first profit-
making year and 50% reduction of the corpor ate income tax for 3 subsequent years in 
case of newly established enterprises from in vestment projects in industries or business 
sectors eligible to investment incentives as listed in Annex IX of this Notification; 
 + Exemption from corporate income tax for th e period of 2 years since the first profit- 
making year and 50% reduction of the paya ble corporate income tax for 6 subsequent 
years in case of: newly established enterprises from investment projects in the regions specified in the list of geographical areas with difficult socio-economic conditions as listed in 
Annex X of this Notification; and businesses moving to the regions specified in the list of 
geographical areas with difficult socio-economic conditions as listed in Annex X of this Notification; 
 + Exemption from corporate income tax for th e period of 3 years since the first profit-
making year and 50% reduction of the corpor ate income tax for 7 subsequent years in 
case of newly established enterprises from invest ment projects in the in dustries or business 
sectors eligible to investment incentives as listed in Annex X of this Notification and 
                                               
8 List of regions with difficult socio-economic conditio ns and especially difficult socio-economic conditions 
pursuant to the Decree No.108/2006/ND-CP dated 22 September 2006. 
9 List of industries and business sectors eligible fo r to special investment incentives pursuant to the 
Decree No.108/2006/ND-CP dated 22 September 2006. G/SCM/N/155/VNM 
 
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  implemented in the regions specified in the list  of geographical area s with difficult socio-
economic conditions as listed in Annex X of this Notification; 
 + Exemption from corporate income tax for th e period of 4 years since the first profit-
making year and 50% reduction of the corpor ate income tax for 9 subsequent years in 
case of newly established enterprises from invest ment projects in the in dustries or business 
sectors eligible to especially investment incentives as listed in Annex VIII of this Notification and implemented in the regions specified in the list of geographical areas with especially 
difficult socio-economic conditions as listed in Annex X of this Notification. 
 
e. Exemption from import duties in respect of the equipment, machinery imported to 
form fixed assets: 
 
- From January 2005 – December 2005: Exempted from import duties in respect of the 
following goods which are not yet produced domestically, or which are produced domestically but 
do not meet requirements if the investment is made in industries or business sectors listed in 
Annex II of this Notification or the project is ca rried out in a region of difficult socio-economic 
conditions listed in Annex III of this Notification or a region of especially difficult socio-economic 
conditions listed in Annex IV of this Notification: 
+ Equipment, machinery or specialized means of transportation of a technological line used 
to set up fixed assets of an enterprise or to expand the investment scale and to renovate technology; 
+ Means of transportation used for transporting employees. 
 - From 1 January 2006: Exempted from import duties for raw materials, materials, 
components imported for 5 years in case projects belong to sectors eligible for investment 
incentives or special investment incentives as listed in Annex VIII and IX of this Notification; or in case that projects are carried out in the regions of especially difficult socio-economic conditions as 
listed in Annex X of this Notification.  
 6. Subsidy per unit: 
 
Specific statistics data are not available. 
 7. Duration of the subsidy: 
 
Specified in item 5. 
 
8. Statistic data permitting an assessment of the trade effects of the subsidy: 
 
Unfeasible due to resources constraint. G/SCM/N/155/VNM 
 
- 13 - 
 
  5  INVESTMENT INCENTIVES  CONTINGENT UPON EXPORT PERFORMANCE FOR FOREIGN-
INVESTED ENTERPRISES (UPDATING PROGRAMME VI OF THE NOTIFICATION ON SUBSIDIES PERIOD 2003-2004) 
1. Title of the program: 
 
Investment incentives for foreign-invested ente rprises contingent upon export performance. 
 
2. Policy objective and/or purposes of the program: 
 
To encourage foreign direct investment in export production sectors. 
 
3. Background and authority for the program: 
 
a. Background: 
 
- Law on amendment of and addition to a number of articles of the Law on Foreign 
Investment in Viet Nam No.18/2000/QH10 dated 9 June 2000 and legal documents guiding the 
implementation of this Law (Decrees No.24/2000/ND-CP dated 31 July 2000 and 
No.27/2003/ND-CP dated 19 March 2003 providing de tailed regulations on the implementation of 
the Law on Foreign Investment in Viet Nam); - Law on Corporate Income Tax No.09/2003/QH11 dated 17 June 2003 (effective since 1 
January 2004) and legal documents guiding the implementation of this Law (Decrees 
No.164/2003/ND-CP dated 22 December 2003 and No.152/2004/ND-CP dated 6 August 2004);  - Law on export and import duties 2005; 
- Law on Investment 2005 effective since 1 July 2005, replacing Law on Foreign Investment in 
Viet Nam 1996, Law on Amendment of  and Addition to a number of articles of the Law on Foreign 
Investment in Viet Nam 2000; 
- Decree No. 108/2006/ND -CP dated 22 September 2006  detailin g and guiding the 
implementation of the abolished Law on Investment: 
+ Decree No.24/2000/ND-CP date 31 July 2000 detailing the implementation of Law on 
Foreign Investment in Viet Nam; 
+ Decree No.27/2003/ND-CP date 19 March 2003 amending and supplementing some 
articles of Decree No.24/2000/ND-CP; 
+ List of sectors and geographical areas entitled to special investment incentives issued 
with Decree No. 164/2003/ND-CP dated 22 December 2003 detailing Law on Corporate 
Income Tax; Decree No. 152/2004/ND-CP amending and supplementing a number of Articles in the Decree No.164/2003/ND-CP; 
+ List of sectors and geographical areas entitled to special investment incentives issued 
with Decree No.149/2005/ND-CP dated 8 December 2005 detailing the implementation of Law on export and import duties. 
 
b. Authority: 
 - Ministry of Planning and Investment; 
- Ministry of Finance. 
 
4. Form of the subsidy: 
 Preferential tax treatment.  
5. To whom and how the subsidy is provided: 
 
a. Preferential corporate income tax:  
Beneficiaries: 
(i) Producing, processing for export at least 80%; (ii) Processing agricultural, forestry (except for wood) and aquaculture products for export 
of at least 50%; 
(iii) Producing, processing for export at least 50%; (iv) Producing, processing for export at least 30% and using many domestic raw materials 
and materials (accounting for at least 30% total production costs); G/SCM/N/155/VNM 
 
- 14 - 
 
   (v) Producing raw materials, high-quality materials for production of footwear and 
apparels for export; 
 (vi) Producing high-quality packages for exports;  (vii) Export processing zone enterprises operating in production sectors. 
 
How investment incentives are granted: 
- From 1 January 2004 – 24 October 2006 : 
+ 20% for 10 years as from the date of commencement of business operations; 
+ 15% for 12 years as from the date of commencement of business operations if the 
project is carried out in a region of difficult socio-economic conditions listed in Annex III of this Notification; 
+ 10% for 15 years as from the date of commencement of business operations if the 
project is carried out in a region of especially difficult socio-economic conditions listed in Annex IV of this Notification; 
+ 10% for 15 years for newly established export processing enterprises both in and out of 
export processing zones. 
 
- From 25 October 2006 : All the above-mentioned incentives were eliminated. 
 
b. Preferential import duty rate:   
- From January 2005 – 31 December 2005 : Exemption from import duties with respect to raw 
materials, materials, components imported for productions for 5 years since commencing production by foreign-invested projects operated in industries or business sectors eligible to 
special investment incentives as listed in Annex V
10 of this Notification or carried out in regions of 
difficult socio-economic conditions as listed in Annex VII11 of this Notification. 
 
- From 1 January 2006 : All the above-mentioned preferences were eliminated. 
 
6. Subsidy per unit: 
 
Specific statistics data are not available. 
 
7. Duration of the subsidy: 
 
Specified in item 5. 
 
8. Statistic data permitting an assessment of the trade effects of the subsidy: 
 
Unfeasible. 
                                               
10 List of sectors eligible to special foreign investment incentives pursuant to the 
Decree No.27/2003/ND-CP dated 19 March 2003 
11 List of geographical areas eligible to special foreign investment incentives pursuant to the 
Decree No.27/2003/ND-CP dated 19 March 2003  G/SCM/N/155/VNM 
 
- 15 - 
 
  6  OTHER INVESTMENT INCENTIVES FOR FOREIGN-INVESTED ENTERPRISES (UPDATING 
PROGRAM VII OF THE NOTIFICATION ON SUBSIDIES PERIOD 2003-2004) 
1. Title of the program: 
 
Investment incentives for foreign-invested enterprises operating in sectors, industries and areas 
where foreign investments are encouraged (not upon export or domestic material consumption criteria). Lists of sectors, industries and regions where foreign investments are encouraged 
(regions of difficult socio-economic conditions or regions of especially difficult socio-economic 
conditions) are listed in Annexes I, III, IV, V, VI12 and VII of this document. 
 
2. Objective of the program: 
 
To encourage foreign direct investment in sectors, industries and areas encouraging foreign 
investment.  
3. Background and authority for the program: 
 
a. Background: 
 
- Law on amendment of and supplement to a number of articles of the Law on Foreign 
Investment in Viet Nam No.18/2000/QH10 dated 9 June 2000 and legal documents guiding the implementation of this Law (Decrees No.24/2000/ND-CP dated 31 July 2000 and 
No.27/2003/ND-CP dated 19 March 2003 providing de tailed regulations on the implementation of 
the Law on Foreign Investment in Viet Nam); - Law on Corporate Income Tax No.09/2003/QH11 dated 17 June 2003 (effective since 
1 January 2004) and legal documents guiding the implementation of this Law 
(Decrees No.164/2003/ND-CP dated 22 December 2003 and No. 152/2004/ND-CP dated 6 August 2004). 
- Investment Law 2005 effective since 1 July 2006 replacing the Law on foreign investment in 
Vietnam 1996, Law on Amendment of and Addition to  a number of articles of the Law on Foreign 
Investment in Viet Nam 2000.  - Decree No.108/2006/ND-CP dated 22/9/2006 prov iding detailed regulations and guiding the 
implementation of the abolished Investment Law: 
+ Decree No.24/2000/ND-CP dated 31 July 2000 providing detailed regulations on the 
implementation of the Law on Foreign Investment in Viet Nam; 
 + Decree No.27/2003/ND-CP dated 19 March 2003 amending of and supplementing a 
number of articles of the Decree No. 24/2000/ND-CP; 
 + List of sectors, areas of investment preferences stipulated by the Decree No. 
164/2003/ND-CP dated 22/12/2003 providing detailed regulations of the Law on 
Corporate Income Tax; Decree No. 152/2004/ND-CP dated 6/8/2004 amending and supplementing a number of articles of the Decree No.164/2003/ND-CP.  
 + List of sectors, areas of investment preferences stipulated by the Decree 
No.149/2005/ND-CP dated 08/12/2005 provid ing detailed regulations of the Law on 
import tax and export tax.  
- Law on Corporate Income Tax No.09/2003/QH11 (effective since 1 January 2004 until the 
end of 31 December 2008) and legal document s guiding the implementation of this Law 
(Decree No.164/2003/ND-CP dated 22 December 2003 and Circular No.128/2003/TT-BTC dated 22 December 2003; Circular No.88/2004/TT-BTC dated 01 September 2004 being effective until 
the end of 31 December 2006, Decree No.24/2007/ND-CP dated 14 February 2007 – effective 
since 01 January 2007 until the end of 31 December 2008); - Law on Corporate Income Tax no.14/2008/QH12 (effective since 1 January 2009) and legal documents guiding the implementation (Dec ree 124/2008/ND-CP dated 11 December 2008 and 
Circular No.130/2008/TT-BTC dated 26 December 2008); 
- Law on import tax, export tax in 2005 and legal documents guiding the implementation (Decree 149/2005/ND-CP dated 08 December 2005 and Circular No.59/2007/TT-BTC dated 
14 December 2007); 
- Law on land and legal documents guiding the implementation of the Law (Decree No.142/2005/ND-CP dated 11 December 2005 regulating the collection of land rentals, 
                                               
12 List of business sectors where foreign investment is encouraged under the Decree No.27/2003/ND-CP 
dated 19 March 2003. G/SCM/N/155/VNM 
 
- 16 - 
 
  water surface rentals; Decree No.198/2003/ND-CP providing detailed regulations of land usage 
charges).  
b. Authority: 
 
- Ministry of Planning and Investment; - Ministry of Finance. 
 
4. Form of the subsidy: 
 
Preferential taxation treatment. 
 
5. To whom and how the subsidy is provided: 
 
Beneficiaries: 
- From 1/2005 - 24/10/2006 : 
 Foreign-invested projects governed by the Law on Foreign Investment in Vietnam: 
 (i) in industries eligible to investment incentives as listed in Annex I of this Notification or in 
business sectors where foreign investments are specially encouraged as listed in Annex V of this Notification or in business sectors where foreign investments are specially encouraged as listed in Annex VI of this Notification; 
ii) are implemented in regions of difficult socio- economic conditions or regions of especially 
difficult socio-economic conditions as listed in  Annex III, IV and VII of this Notification; 
- From 25/10/2006:   
 i) Investment projects meeting one of the foll owing conditions are eligible for preferential 
corporate income tax: + investment is made in industries and business sectors as listed in Annexes VIII and IX of 
this Notification; 
 + investment is made in industries and business sectors which are not prohibited by the 
laws and utilizes an average number of labours annually at least: 
 in urban areas of class 1 and class 2: 100 people; 
 in regions where foreign investments are encouraged (including regions with 
difficult socio-economic conditions and especially difficult socio-economic conditions as listed in Annex X of this Notification): 20 people; 
 other regions: 50 people.  
ii) Incentives for newly established enterprises from investment projects meeting export 
criteria were eliminated. 
- From 01/01/2007 : 
+ Preferential corporate income tax rates for enterprises operated in textile and garment 
industries established before 25 October 2006 meeting export criteria were eliminated.  
How investment incentives are granted:  
 
a. Preferential corporate income tax: 
 
- From 1/2005 - 24/10/2006 : 
 + Preferential corporate income tax rates of 20% for the period of 10 years since the date 
of commencing business if the investment pr oject operated in industries and business 
sectors as listed in Annex I of this Notification or in regions with difficult socio-economic conditions as listed in Annex III of this Notification; 
 + Preferential corporate income tax rates of 15% for the period of 12 years since its 
business commence if the investment project operated in industries and business sectors 
areas as listed in Annex I of this Notification and in regions with difficult socio-economic conditions as listed in Annex III of this Notification; or in regions with especially difficult 
socio-economic conditions as listed in Annex IV of this Notification; 
 + Preferential corporate income tax rates of 10% for the period of 15 years since its 
business commence if the investment project operated in industries and business sectors 
areas as listed in Annex I of this Notification and in regions with especially difficult socio-
economic conditions as listed in Annex IV of this Notification. 
 G/SCM/N/155/VNM 
 
- 17 - 
 
  - From 25/10/2006 : 
 + Preferential corporate income tax rate: 10% to 20% for the period of 10, 12 or 15 years, 
subject to particular conditions, since the date of commencing business; 
+ Preferences on duration of tax exemption/reduction: tax exemption from 2 - 4 years 
commencing from the first profit-making year and reduction of 50% for 2 - 9 subsequent 
years, subject to particular conditions. 
 
b. Preferential import duty rate: 
 - From January 2005 – 24 October 2006:  Foreign-invested projects operating in business 
sectors where foreign investments are specially encouraged as listed in Annex V of this Notification 
or carried out in regions of difficult socio-economic conditions as listed in Annex VII of this 
Notification will be exempted from import duties in respect of raw materials, components and parts which are imported for production for 5 years from the commence of their production.  
- From 25 October 2006: Investment projects operating in business sectors where foreign 
investments are encouraged or specially encouraged as listed in Annexes VIII and IX of this Notification, or operating in regions of difficult or especially difficult socio-economic conditions as 
listed in Annex X of this Notification will be exempted from import duties for raw materials, 
components and parts imported for production for 5 years since the commencement of their production.  
6. Subsidies values: 
 
Specific statistics data are not available. 
 
7. Duration of the subsidy: 
 
See detailed information as listed in item 5. 
 8. Assessment on trade effects of the subsidy: 
 
Unfeasible. G/SCM/N/155/VNM 
 
- 18 - 
 
  7  PREFERENTIAL INVESTMENT CREDIT FOR DEVELOPMENT CONTINGENT UPON EXPORT 
CRITERIA (UPDATING PROGRAMME VIII OF  THE NOTIFICATION ON SUBSIDIES 
PERIOD 2003-2004)  
1. Title of the program: 
 
Preferential investment credit for development contingent upon export criteria. 
 
2. Objective of the program: 
 
To support businesses in producing and processing goods for export.  
 
3. Background and authority for the program: 
 
a. Background 
 
- Decree No.35/2002/ND-CP dated 29 March 2002 of the Government revising and supplementing the List A, B and C issued in the annex of the Decree No.51/1999/ND-CP dated 8 
July 1999 of the Government; 
- Decree No.106/2004/ND-CP dated 1 April 2004 of the Government on the State’s investment credit for development; - Decision No.133/2001/QD-TTg dated 10 September 2001 of the Prime Minister on the 
promulgation of the Regulation on export supporting credit; 
- Decree No.151/2006/ND-CP dated 20 December 2006 of the Government on the State’s investment credit and export supporting credit; 
- Official paper No.1467/BTM-XNK dated 9 March 2006 of the Ministry of Trade on List of 
goods eligible for export supporting credit from the 2006 Development Assistance Fund.  
b. Authority: 
 - Ministry of Finance; 
- Development Assistance Fund (since 19 May 2006 became Bank for Development of 
Vietnam). 
 4. Form of the subsidy: 
 - Short-term export credit; 
- State export credit; 
- Post-investment interest rate support. 
 5. To whom and how the subsidy is provided: 
 
5.1 Short–term export credit: 
 
To whom the subsidy is provided : The following exporters having export contracts would be 
eligible for short-term export credit: 
+ Producing, processing and/or trading products as listed in the export priority and 
encouragement program which is annually or periodically stipulated by the Prime 
Minister; 
+ For rice: the Development Assistance Fund ceased loans for rice export since 
22 March 2006;  
+ Having export contracts to new export markets or maintaining traditional export markets 
in accordance with the Prime Minister's regulation; 
+ Projecting to export at least 30% of th e annual turnover and having already been 
provided with investment loans from the Development Assistance Fund; 
+ Exporters doing projects of production, manufacturing, processing goods for export, 
which have sale plans expecting to reach export value of at least 30% of its annual revenue and being provided investment loan by the Development Assistance Fund, will 
be eligible for borrowing short-term loans in the first year of signing export contract after 
starting its production. 
 G/SCM/N/155/VNM 
 
- 19 - 
 
  - How the subsidy is provided: 
+ Short-term loans interest shall be 80% of the state development loan interest at the time 
of signing loan contract and fixed throughout  the loan duration. Overdue loan is charged 
with the rate of 150% of the due rate. The dura tion of short-term loan shall not be longer 
than 12 months. 
+ The above-mentioned borrowers shall be provided bidding guarantee or contractual 
performance guarantee if so require. The ma ximum guarantee shall not higher than 3% 
of the bidding price (in case of bidding guaran tee), 10% of the contract value (in case of 
contractual performance guarantee) and no gu arantee fee is applied. Guarantee duration 
is subject to exporters’ need. 
 
5.2 State export credit: 
 
-  To whom the subsidy is provided: 
 
 Exporters having export contracts or importers having import contracts signed with Vietnamese enterprises and economic entities for the following products: ground nuts, coffee, tea, 
pepper, processed cashew nuts, fruits and vegetables (canned, fresh, dried, semi-processed, 
juice); sugar, seafood, meat of livestock and poultry; poultry’s eggs; cinnamon and cinnamon’s essence; products made of rattan, bamboo and ha ndicraft weave products of other materials; 
embroideries; artistic ceramics and porcelain, silk and products made of silk; wooden articles; 
parts of assembled equipment and assembled equipment; electrical and diesel power engines; 
power transformers; industrial and construction’s plastic products; electric cables manufactured domestically; sea vessels; electric cables; bulbs; computers and components. Importers must be 
guaranteed by the government or state bank of the importing country for the loan.
 
 
- How the subsidy is provided : 
 
The Bank for Development of Viet Nam will decide  the amount of loan on case by case basis. 
The maximum loan shall be 85% of the value of sign ed export or import contract or the L/C value 
in case of pre-shipment loan or legal bank draft value in case of post-shipment loan. The 
maximum term of loan shall not be longer than 12 months. The loan interest will be determined by 
the Ministry of Finance to be in line with market  interests. Overdue loan interest rate shall be 
150% of the due rate under the related credit contract.  
 
5.3 Post-investment interest rate support: 
 
- To whom the subsidy is provided : Investors of projects reaching export value of more 
than 30% of its total manufacturing and trading value in a fiscal year and have not yet been or are only provided part of the state investment and development loan capital.  
- How the subsidy is provided : Investors shall only enjoy post-investment loan interest for 
the loan to invest in its fixed assets and with an amount not exceed the total capital invested in the project’s fixed assets. The duration for applying post-investment interest shall be the duration 
of the capital loan. 
 
 
 For loans in Vietnamese Dong, post-investment interest rate shall be determined by 
multiplying the amount of original debt actually paid with 50% of the state investment and 
development credit rate and the actual loan period (converted by year) of the original debt actually 
paid.  
For loans in foreign currency, interest rate shall be determined by multiplying the original 
debt actually paid in foreign currency in a given year with 35% of the interest rate for loans in foreign currency applied to loan contracts by credit institutions and the actual loan period 
(converted by year) of the original debt actually paid. 
 Projects eligible for investment loan may also be eligible for post-investment interest rate 
support. However, total amount supported to a pr oject shall not be more than 85% of the total 
investment capital of the project.   G/SCM/N/155/VNM 
 
- 20 - 
 
  6. Subsidy per unit, or in case where this is not possible, the total amount or the annual 
amount budgeted for the subsidy: 
 
 Specific statistics data are not available.  
 
7. Duration of the subsidy: 
 
This programme was terminated since Viet Nam’s accession to the WTO. 
 8. Trade effects of the subsidy: 
 
Unfeasible. G/SCM/N/155/VNM 
 
- 21 - 
 
  8  PREFERENTIAL DEVELOPMENT CREDIT FOR INVESTMENT CONTINGENT UPON 
LOCALISATION RATIOS (UPDATING PROGRAM IX OF THE NOTIFICATION OF SUBSIDIES 
PERIOD 2003-2004) 
1. Title of the program: 
 
Preferential development credit for investment contingent upon localization ratios. 
 
2. Objective of the program: 
 
Assisting organizations and individuals developi ng their domestic production, raising locally 
added value ratios. 
 
3. Background and authority for the program: 
 
a. Background: 
 - Decree No.106/2004/ND-CP dated 1 April 2004 of the Government on the State’s 
investment credit for development; 
 - Resolution No.13/2004/NQ-CP dated 03 November 2004 of the Government.  
b. Authority: 
 - Ministry of Finance; 
- Development Assistance Fund (since 19 May 2006 became Bank for Development of 
Vietnam).  
4. Form of the subsidy: 
 
- Investment loans;  - Post-investment interest rate support; 
- Guarantee of investment credit. 
 5. To whom and how the subsidy is provided: 
 5.1 Investment loans: 
 
- To whom the subsidy is provided : Projects manufacturing passenger vehicles of 25 seats 
or more with minimum lo calization ratio of 40%. 
- How the subsidy is provided : The maximum loan shall be 70% of total investment capital 
of the project. The lending term shall not be longer than 12 years. Investment loans interest rate 
shall be 70% of the average interest rate of mi d-term and long-term rates of loans provided by 
domestic commercial banks and determined at the time of signing first loan contract and fixed throughout the lending term. The preferential investment loans remained valid until 
31 December 2005. 
 5.2 Post-investment interest rate support and guarantee of investment credit: 
 - To whom the subsidy is provided : projects manufacturing passenger vehicles of 25 seats 
or more with minimum localization ratio of 40% which had not yet been or were only provided part of the state investment and development loan capital:  
+ would be supported with post-investment interest rate if not provided with investment 
credit guarantee by the Development Assistance Fund. 
+ would be provided with investment credit guarantee by the Development Assistance Fund 
if not supported with post-investment interest rate. 
- How the subsidy is provided : 
+ Post-investment interest rate support : Investors shall only enjoy post-investment loan 
interest for the capital loan in order to invest in its fixed assets and with an amount not 
exceed the total capital invested in the proj ect’s fixed assets. The duration for applying 
post-investment interest shall be the duration of the loan. 
 G/SCM/N/155/VNM 
 
- 22 - 
 
   For loans in Vietnamese Dong, post-investment interest rate shall be determined by 
multiplying the amount of original debt actually paid with 50% of the state investment and development interest rate and the actual loan period (converted by year) of the original debt actually paid. 
 
For capital loans in foreign currency, supported interest rate shall be determined by 
multiplying the original debt actually paid in foreign currency in a given year with 35% of the 
interest rate for loans in foreign currency applied to capital loan contracts by credit institutions and 
the actual loan period (converted by year) of the original debt actually paid.  
Projects eligible for post-investment interest rate may also be eligible for partial investment 
loan, or projects eligible for partial investment loan may also be eligible for investment credit 
guarantee. However, total amount supported to a project shall not be more than 85% of the total 
investment capital of the project. 
 
+ Investment credit guarantee:  term for guarantee will be specified according to term of 
load which has been agreed between investors and credit institutions. The guarantee 
amount for each project should not exceed 70% approved total investment in fixed 
assets of the project. No guarantee fee for th e Development Assistance Fund is applied.  
 6. Subsidy per unit: 
  Specific statistics data are not available.  
 
7. Duration of the subsidy: 
 
- Subsidies under item 5.1: Terminated since 1 January 2006; 
- Other forms of subsidies of this program: terminated upon Viet Nam’s accession to the WTO 
(11 January 2007).  8. Trade effects of the subsidy: 
 
Unfeasible. G/SCM/N/155/VNM 
 
- 23 - 
 
  9  OTHER PREFERENTIAL INVESTMENT CREDIT FOR DEVELOPMENT (UPDATING 
PROGRAM X OF NOTIFICATION OF SUBSIDIES PERIOD 2003-2004)  
1. Title of the program: 
 
Preferential investment credit for development. 
 2. Objective of the program: 
 
To support development investment projects of  economic sectors in a number of important 
business sectors, fields of activities and region s and key economic programs that have direct 
impacts on the transformation of economic stru cture and promote sustainable economic growth. 
 
3. Background and authority for the program: 
 
a. Background: 
 
- Resolution No.13/2004/NQ-CP dated 03 November 2004 of the Government; 
- Decree No.106/2004/ND-CP dated 01 April 2004 of the Government on state’s investment 
credit for development;  
- Decision No.54/2004/QD-BTC dated 16 June 2004 on issuance of the detailed list of 
programs and projects borrowing state’s investment credit for development; 
- Decision No.80/2004/QD-BTC dated 12 October 2004 of the Minister of Finance on the 
supplementation of the list of projects borrowing state’s investment credit for development;  - Circular No.63/2004/TT-BTC dated 28 June 2004 of the Ministry of Finance on guiding some 
articles of the Decree No.106/2004/ND-CP date d 1 April 2004 of the Government on state’s 
investment credit for development; - Decree No.35/2002/ND-CP dated 29 March 2002 of the Government on the amendment of 
and supplementation to the List A, B and C, which were promulgated at the Decrees 
No.51/1999/ND-CP dated 8 July 1999 of the Govern ment on providing detailed regulations on the 
implementation of the Law on Domestic Investment Promotion; - Decision No.190/2005/QD-TTg dated 28 January 2005 of the Government on the 
amendment and adjustment of the list B and C, which were promulgated at the Annex to the -
Decree No.35/2002/ND-CP dated 29/3/2002 of the Government;  - Decree No.151/2006/ND-CP of the Prime Minister on state’s investment credit and state’s 
export credit; 
- Circular No.69/2007/TT-BTC dated 25 December 2007 of the Ministry of Finance on guiding 
some articles of the Decree No.151/2006/ND-CP of the Prime Minister on the state’s investment 
credit and state’s export credit; 
 
b. Authority: 
 
- Ministry of Finance; 
- Development Assistance Fund (since 19 May 2006 became Bank for Development of 
Vietnam) 
 
4. Form of the subsidy: 
 
- Investment credit for development; 
- Post-investment interest rate support. 
 5. To whom and how the subsidy is provided: 
 5.1 From January 2005 – 31 December 2006: 
 
a. Preferences on State’s investment credit for development: 
 The program for investment loan and for borrowing projects under Government’s 
agreements. 
 G/SCM/N/155/VNM 
 
- 24 - 
 
  - To whom the subsidy is provided : organizations and individuals being investors of the 
projects in following categories and areas: 
 
No. Projects eligible to apply for 
investment credit Regions where projects implemented  
 I. Projects lending investment credit 
under approved plans  
01 Projects on afforestation to supply raw 
materials for the production of paper, 
pulp, artificial planks in conjunction with 
processing enterprises.  Regions of difficult socio-economic 
conditions as listed in the List B, C of the Government’s regulation providing guidance 
on the implementation of the Law on 
Domestic Investment Promotion (amended), hereinafter called region B and C.  
02 Hi-tech projects to produce pure or new 
plant varieties/seeds, animal breeds  No region classification  
03 Projects on household water supply. No region classification  
04 Projects on industrial salt production.  No region classification  
05 Projects on antibiotics production.  No region classification 
06 Projects on investment in establishment 
of vocational school.  No region classification 
07 Projects on investment in establishment 
of enterprises with comprehensive process of textiles weaving, printing and 
dying. No region classification 
08 Projects on production of steel billets 
made from high quality specialized steel. 
Project on aluminium exploitation and 
production. No region classification 
09 - Projects on manufacture of passenger 
vehicles of 25 seats or more with minimum localization ratios of 40% 
- Projects on investment in manufacture 
of new railway carriages at domestic factories. 
- Projects on manufacture and assembly 
of railway locomotives. - Projects on establishment of shipbuilding yards. No region classification 
10 Projects on manufacture of diesel 
engines with capacity of 300 CV or more.  No region classification 
11 - Projects on production of heavy and 
new mechanical products. 
- Projects on large-scale casting. No region classification 
12 Projects on construction of large 
hydroelectric power plants: for people’s 
migration and manufacturing domestic equipment. Region B and C. 
13 Projects on nitrogenous fertilizer DAP 
production. No region classification 
14 Projects on establishment of new 
enterprises for cement production.  
 
- How the subsidy is provided : Loan’s interest rate is defined as 70% of average mid-term 
and long-term loan’s interests of domestic commercial banks. Loan’s interest is defined at the time 
where the credit contract is first signed and fixed throughout loan’s term. 
 
b. Post-investment interest rate support: 
 
- To whom the subsidy is provided : Organizations and individuals being project investors 
of projects eligible for investment loans according to Decree No.106/2004/ND-CP that have not borrowed or borrowed only a part of the state’s in vestment credit for development; organizations G/SCM/N/155/VNM 
 
- 25 - 
 
  and individuals being project investors of projects as listed in the list of industries, business 
sectors and regions eligible for preferential investment treatment according to current regulations (as regulated by Decrees No.51/1999/ND-CP da ted 8 July 1999, Decree No.35/2002/ND-CP dated 
29 March 2002 and Decision No.190/2005/QD-TTg dated 28 January 2005; and listed in Annex II, 
III and IV of this Notification) but are not eligible for investment loans and are not guaranteed for 
investment credit by Development Assistance F und (now became the Bank for Development of 
Vietnam). 
 
- How the subsidy is provided : 
+  For loans in Vietnamese dong, the amount of post-investment interest rate support for 
the project will be defined by multiplying payabl e original loan with 50% of the interest of 
state’s investment credit for development and the original loan’s duration (converted to 
year) of the payable original loan.  
+  For loans in foreign currencies, the amount of support is defined by multiplying the 
payable original loan (in domestic currency) of the year with 35% of the interest rate of 
loans (in foreign currencies) under the loan contract of the credit institutions and loan duration (converted to year) of the payable original loan. 
 
5.2 From 01 January 2007 – 31 December 2007: 
 
a. Preferences on state’s investment credit for development: 
 
- To whom the subsidy is provided : Investors doing projects as listed in List of projects 
eligible for investment credit loan promulgated with the Decree No.151/2006/ND-CP. 
 
No. INDUSTRIES, BUSINESS SECTORS 
I Social-economic infrastructure (No region distinction)  
1 Investment projects in roads, road bridges, railways and railway bridges. 
2 Investment projects in construction of wa ter supply systems for civil and industrial 
use. 
3 Investment projects in construction of water drainage, wastes treatment systems at 
urban areas, industrial zones, economic zones, export processing zones, high tech 
parks, hospitals and groups of traditional craft villages. 
4 Projects on construction of housing area for labours of industrial zones, economic 
zones, export processing zones, students’ dormitories. 
5 Investment projects in health care: expanding, upgrading, purchasing of new 
equipment, new construction of hospitals. 
6 Investment projects in expanding, upgrading and new construction of educational, 
training and vocational schools.  
7 Investment projects in infrastructure at handicraft villages, groups of traditional craft 
villages at countryside. 
II Agriculture, rural development (No region distinction)  
1 Projects for new construction, expansion of gathered livestocks and poultry breeding 
facilities; gathered livestocks and poultry slaughtering and processing facilities. 
2 Projects on development of aqua and sea breeds; investment in infrastructure for 
cultivating and breeding aqua, sea products. 
3 Projects on development of seedling, animal breeds, forest seeds. 
III Industry (No region distinction)  
1 Projects on investment in high processing of mineral ores: 
- production of steel billets, cast iron  with minimum output capacity of 200 mil 
tons/year; 
- production of alumin with minimum output capacity of 300 mil. tons/year; production of metal aluminum with minimum output capacity of 100 mil. tons/year;  
- production of metal fero alloy with minimu m output capacity of 1 mil. tons/year;  
- production of ferrous metals with minimum output capacity of 5 mil. tons/year;  - production of dioxyde titan pigments with minimum output capacity of 20 mil. tons/year.  
2 Projects on manufacture of diesel engines with capacity of 300 CV or more. 
3 Projects of manufacture of new railway carriages and assembly of railway 
locomotives.  
4 Investment projects in production of antibiotics, anti-addition medicine, G/SCM/N/155/VNM 
 
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  commercialized vaccine and HIV/AIDS treatment medicine. 
5 Projects on construction of small hydroelectric power plants with capacity of or 
smaller than 100MW; construction of wind-power plant.  
6 Projects on DAP and nitrogenous fertilizer production. 
IV Investment projects in regions of  difficult or especially difficult 
socio-economic conditions; projects in regions of concentrated Khmer 
people, in hamlets of Program 135 và borderside hamlets of Program 120, 
harsh coastal hamlets. 
V Lending projects under Government ’s agreements; abroad investment 
projects under the Prime Minister’s decisions.  
 - How the subsidy is provided : The maximum loan equals to 70% of total investment fund 
of the project (excluding working capitals). Term of loan depends on capital return capability of the 
project and repayment capability of investors in ac cordance with project’s specific production and 
business operation but not exceeding 12 years. Investment loan interest in Vietnamese dong equals to interest of State’s bonds of 5 years term plus 0.5%/year. 
 
b. Post-investment activities: 
 - To whom the subsidy is provided : Investors doing projects as listed in List of projects 
eligible for investment credit loan for socio-economic infrastructure projects; investment projects 
in agriculture, rural development; investment projec ts in regions of difficult or especially difficult 
socio-economic conditions as listed in Annex X of this Notification; projects in regions of Khmer 
people, in small villages in remote areas and in coastal alluvial grounds, which are difficult for 
cultivation.  - How the subsidy is provided : post-investment support equals to the difference between 
investment loan interest of financial institutions and 90% of investment loan by for entities entitled 
to supports from the Bank for Development of Viet Nam. 
 
6. Subsidy value: 
 
Specific statistics data are not available. 
 
7. Duration of the subsidy: 
 
January 2005 – December 2007. 
 
8. Trade effects of the subsidy: 
 
 Unfeasible. 
 G/SCM/N/155/VNM 
 
- 27 - 
 
  10  EXPORT PROMOTION (UPDATING PROGRAM XII OF THE SCM NOTIFICATION 
2003-2004) 
 No change for the Program XII of the SCM Notification 2003-2004. 
 
 Since 1 January 2007: Termination of this programme.  G/SCM/N/155/VNM 
 
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  11  TRADE PROMOTION (UPDATING PROG RAM XIII OF THE NOTIFICATION ON 
SUBSIDIES PERIOD 2003-2004) 
 From January 2005 – 31 December 2005: No change for the Program XIII of the SCM 
Notification 2003-2004. 
 
 From 1 January 2006: Termination of this programme.  
 G/SCM/N/155/VNM 
 
- 29 - 
 
  12  SUPPORT FOR MECHANICAL PRODUC TS (UPDATING PROGRAM XIV OF THE 
NOTIFICATION ON SUBSIDIES PERIOD 2003-2004) 
 No change for the Programme XIV of the SCM Notification 2003-2004. 
 G/SCM/N/155/VNM 
 
- 30 - 
 
  13  SUPPORT FOR SHIPBUILDING INDUSTRY (UPDATING PROGRAMME XV OF THE 
NOTIFICATION ON SUBSIDIES PERIOD 2003-2004) 
1. Title of the program 
 
 Support for the shipbuilding industry. 
 2. Policy objective and/or purposes of the program: 
  To support and develop the shipbuilding industry.  3. Background and authority for the program: 
 
a. Background:  
- Decision No.117/2000/QD-TTg dated 10 Octo ber 2000 of the Prime Minister on some 
policies and financial mechanism for shipbuilding projects of Viet Nam’s shipbuilding industry; - Decision No.1419/QD-TTg dated 1 November 2001 of the Prime Minister; 
- Decree No.149/2005/ND-CP dated 8 December 20 05 providing guidelines to implement the 
Import-Export Tariff Law;  - Decision No. 54/2004/QD-BTC dated 16 June 2004 promulgating the detailed list of programs and projects eligible for the investment - development credits of the State; 
- Decision No.80/2004/QD-BTC dated 12 October 2004 of the Minister of Finance 
supplementing the list of projects borrowing the investment - development credits of the State.  
b. Authority: 
 - Ministry of Transportation;  
- Development Assistance Fund (Vietnam Development Bank since 19 May 2006). 
 4. Form of the subsidy: 
 
- Tax incentives; 
- Credit incentives. 
 
5. To whom and how the subsidy is provided: 
 
5.1 Domestic shipbuilding enterprises: 
  To whom the subsidy is provided: Shipbuilding enterprises of all economic sectors with 
the following projects: - Projects on building the followin g types of new seagoing vessels:  
+ Freighters with deadweight of 3,000 tons or more; 
+ Dredging ships with capacity of 1,000 cube metrics per hour or more; + Tankers with deadweight of 1,000 tons or more; 
+ Liquefied gas vessels with capacity of 1,200 cubic metrics or more; 
+ Fishing vessels with capacity of 300 CV or more; + Passenger vessels with 100 seats or more. 
- Projects on upgrading, expanding and establishing new shipbuilding factories. 
  How the subsidy is provided:  
 
 a. Tax incentives 
 
From January 2005 – 24 October 2006: 
-  Exemption from import duty for machines, equipments, and means of transportation to 
establish the enterprise’s fixed assets, for raw materials and semi-products used in the 
shipbuilding process which cannot be produced dome stically or not yet satisfy regulated standards; 
-  Exemption for the first 2 years since the profit making year and reduction of 50% of the 
corporate income tax for the 2 subsequent years.  G/SCM/N/155/VNM 
 
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  From 25 October 2006:   
Enjoy corporate income tax of 15% - 20% (depending on specific conditions) in 10-12 years 
since enterprises are established from projects in  sea transport. After that period, the corporate 
income tax is 28%. 
 
b. Development-investment credit  
Only projects of shipbuilding factories capabl e to build vessels with the capacity of 10,000 
tons or more and projects building ship models of the Vietnam Ship Industry Corporation are eligible for the development-investment credit of the State. See more details in the Programme VIII. 
 
6. Subsidy value: 
 
Not applicable. 
 7. Duration of the subsidy: 
From January 2005 – December 2007.  
8. Statistic data permitting an assessment of the trade effects of the subsidy: 
 
 Not accessible. 
 G/SCM/N/155/VNM 
 
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  14  ASSISTANCE FOR COMMERCIAL DEVELOPMENT IN MOUNTAINOUS, ISLAND AND 
ETHNIC MINORITY AREAS (UPDATING PROGRAMME XVI OF THE NOTIFICATION ON SUBSIDIES PERIOD 2003-2004) 
1. Title of the program: 
 
 Supports for trade in mountainous, island and ethnic minority areas.  
2. Policy objective and/or purposes of the program 
 
To assist develop the mountainous, island and ethnic minority areas. 
 
3. Background and authority for the program: 
 
a. Background: 
 
- Decision No.02/2002/ND-CP dated 3 January  2002 of the Government amending and 
supplementing a number of articles of the Decree  No.20/1998/ND-CP dated 31 March 1998 of the 
Government on trade development in the mountainous, island and ethnic minority areas; 
 - Circular No.04/2002/TT-NHNN dated 3 July 2002 of the State Bank providing guidelines to 
implement the reduction of lending interest rates of the State commercial banks for traders in 
mountain, island and ethnic minority regions according to the provisions of the Government’s 
Decree No. 02/2002/ND-CP dated 3 January 2002;  
- Decision No.391/2003/QD-NHNN dated 28 Ap ril 2003 of the State Bank of Viet Nam 
amending and supplementing the State Bank Governor’s Circular No.04/2002/TT-NHNN dated 
3 July 2002 which provide guidelines to implement the reduction of loan interest rates by state 
commercial banks for traders in mountainous, island and ethnic minority regions according to the 
Decree No.02/2002/ND-CP of the Government.  
b. Authority: 
 
- State Bank of Vietnam; - State commercial banks. 
 
4. Form of the subsidy: 
 
- Exemption from and reduction of corporate income tax; 
- Exemption from and reduction of land rent; - Reduction of lending interest rate of State commercial banks. 
 
5. To whom and how the subsidy is provided: 
 
How the subsidy is provided : traders doing business in the mountainous, island and 
ethnic minority areas to supply and consume essential goods having significant impact on the 
production and living situation of ethnic communities in mountainous, island and ethnic minority areas. 
 
How investment incentives are granted : 
- Exemption from corporate income tax for the first 2-4 years since the first profit making year and reduction of 50% for the 4-7 subsequent years, further reduction of 50% of the 
corporate income tax for the 2 subsequent years if an enterprise employs averagely not less than 
20 people; - Exemption from and reduction of land rental in certain period after signing the land lease 
contract; 
- Reduction of loan interest rate: traders who borrow from commercial banks for reserving 
and selling essential goods and purchasing agro-f orestry products in the regions with difficult 
conditions of the mountainous, island and ethnic minority areas are eligible for 20% reduction 
from the regular loan rate of state commercial banks at borrowing time. The reduction made by state commercial banks will be compensated by the government;  - State enterprises doing business in the mountainous, island and ethnic minority areas are G/SCM/N/155/VNM 
 
- 33 - 
 
  eligible for borrowing mid and long term state loans with the most preferential interest rate in 
order to establish new business branches in those areas and expand their business or production scale.  
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 January 2005 – December 2007. 
 8. Statistic data permitting an assessment of the trade effects of the subsidy: 
  Negligible. G/SCM/N/155/VNM 
 
- 34 - 
 
  15  ASSISTANCE TO ENTERPRISES FACING DIFFICULTIES DUE TO OBJECTIVE REASONS 
(UPDATING PROGRAMME XVII OF THE NOTIFICATION ON SUBSIDIES PERIOD 2003-2004) 
 No change has been made to the Programme XVII of the SCM Notification 2003-2004. G/SCM/N/155/VNM 
 
- 35 - 
 
  16   INCENTIVES FOR INVESTMENT PR OJECTS IN SCIENCE AND TECHNOLOGY 
(UPDATING PROGRAMME XVIII OF THE NOTIFICATION ON SUBSIDIES PERIOD 2003-2004) 
1. Title of the program: 
 
Incentives for investment in science and technology. 
 
2. Policy objective and/or purposes of the program: 
 
To encourage enterprises to invest in scientific and technological activities with the 
objectives of reforming and improving technology , and enhancing the quality of products and the 
effectiveness of production and business. 
 3. Background and authority for the program: 
 
a. Background: 
 
- Law on Science and Technology 2000; 
- Law on Technology Transfer 2006; - Decree No.119/1999/ND-CP dated 18 September 1999 of the Government on a number of policies and financial mechanism to encourage enterprises to invest in science and technology , 
and legal documents providing guidelines to do so; 
- Decree No.99/2003/ND-CP dated 28 August 2003 of the Government issuing the regulations 
for technology zones; 
- Decision No.53/2004/QD-TTg dated 5 April 2004 of the Prime Minister on a number of 
policies to encourage investment in high-tech zones; - Decree No.80/2007/ND-CP dated 19 May 2007 of the Government on science and 
technology enterprises; 
- Joint circular No.25/2003/TTLT/BKHCN-BTC dated 25 August 2003 of the Ministry of Science 
and Technology and Ministry of Finance.  
b. Authority: 
 - Ministry of Science and Technology; 
- Ministry of Finance. 
 4. Form of the subsidy: 
 - Tax incentives; - Land incentives; - Credit incentives. 
 
5. To whom and how the subsidy is provided: 
 
a. Incentives for enterprises investing in scientific and technological activities: See more 
details in the Programme XVIII of the SCM Notification 2003-2004.  
b. Corporate income tax incentives for domestic projects and foreign invested projects 
carrying out the science researches and technology  development, technology and science services; 
consultancy on legal affairs, investment, business,  business management, protection of intellectual 
property rights and technology transfer: See more  details in the Programme VI and IX of this 
Notification. 
 
c. Incentives for high-tech zones: 
- Investors doing projects in high-tech zones are eligible for the corporate income tax 
rate of 10% for the whole duration of their proj ect; exemption from corporate income tax for 4 
years since the first profit making year; and reduction of 50% of corporate income tax for the 
9 subsequent years. These incentives expired since 21 March 2007 as the Decision 
No.53/2004/QD-TTg was expired on that day); G/SCM/N/155/VNM 
 
- 36 - 
 
  - Investors carrying out technology research and development or training human resources 
with high level in science and technology are exempted from land rental in accordance with relevant regulations of the Government; - Investors having projects in high-tech zones and operating in accordance with the Law on 
Promotion of Domestic Investment are considered to borrow medium and long-term credit with 
preferential interest rate, to be guaranteed for the loan capital and to be granted post-investment 
support from the Development Assistance Fund; 
- Investors doing projects in high-tech zones are eligible for the state export credit incentives 
when exporting their products directly.  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: 
 
- For enterprises investing in technology and science in general: From 1 January 2005 – 
21 March 2007.  - For high-tech zones: From 1 January 2005 – 21 March 2007.  
8. Statistic data permitting an assessment of the trade effects of the subsidy: 
 
 Data not available. G/SCM/N/155/VNM 
 
- 37 - 
 
  ANNEX I 
INDUSTRIES AND BUSINESS SECTORS ELIGIBLE FOR CORPORATE INCOME TAX INCENTIVES13 
(Issued with the Government Decree No.164/2003/ND-CP dated 22 December 2003 providing 
details for the implementation of the Law on  Corporate Income Tax and amended by the 
Government Decree No.152/2004/ND-CP dated 6 August 2004) 
 
I. Afforestation and sectioning areas for forest regeneration; planting perennial trees on 
uncultivated land and bare hills and mountains; land reclamation; salt production; aquaculture in unexploited waters : 
 
1.  Afforestation, taking care of forests. 2.  Planting long-term industrial trees and frui t trees on uncultivated land and bare hills and 
mountains. 
3.  Reclaiming land for agricultur al, forestry and fishery production. 
4.  Production, exploitati on and refining of salt. 
5.  In unexploited water. 
 II. Construction of infrastructure, development of public transportation systems; development 
of education, training, health care and national culture : 
 
1.  Investment in new construction or modernization of power plants, power distribution and transmission. Construction of fa cilities to use solar energy, wind energy and bio-gas energy. 
2.  Investment in construction of water plants and water supply systems for civil and industrial 
use; investment in construction of water drainage systems. 3.  Investment in new construction or modernization of bridges, roads, domestic waterway, 
railways, airports, seaports, railway stations, bus stations and parking areas. 
4.  Construction of technical infrastructure of concentrated population areas in the regions in Lists B and C issued with the Decree No.164/2003/ND-CP. 5.  Development of public transportation: investment in means of railway transportation, sea 
transportation, road transportation of passengers by buses of 17 seats and over, and 
transportation of passengers on waterways by motorized means. 6.  Investment in providing Internet connectio n services, Internet access services, Internet 
application services in areas in Lists B and C issued with the Decree No.164/2003/ND-CP; and 
investment in mail and parcel services. 7.  Establishment of semi-public and private schools at the levels of preschool education; general 
education, vocational high-school education, college education and university education. 
8.  Establishment of vocational training facilities to improve skills of workers. 9.  Investment in construction of museums, libr aries, cultural houses and national dance, music 
and song groups; production, manufacture and repair of national musical instruments; 
preservation of museums, libraries and cultural houses. 
10.  Establishment of private or people-funded  hospitals for examination and treatment of 
diseases, establishment of facilities for epidemic control; establishment of centres for rescue and 
caring of the disabled and orphans, and geriatric centres. 
 III. Fishery in offshore waters; processing of agricultural, forestry and aquatic products; 
provision of direct technical services for agricultural, forestry and fishery : 
 1.  Fishery in offshore waters. 2.  Services to support the planting of agricultural, industrial and forestry trees; activities to 
support husbandry; activities to support; fishery services; protection services for domestic 
animals; propagation and hybridization; services to preserve agricultural, forestry and fishery 
products; and construction of warehouses for preservation of agricultural, forestry and aquatic 
products. 
 IV. Scientific research and technological development, scientific and technological services; 
consultancy on law, investment, business, corp orate management, protection of intellectual 
property rights and technology transfer : 
 
                                               
13 Related to Programmes IV and VI of this Notification. G/SCM/N/155/VNM 
 
- 38 - 
 
  1.  Investment in construction of technical facilities and works: laboratories and experiment 
stations to apply new technologies in production; production of new materials and rare and precious materials. 2.  Investment in production of computers and software products. 
3.  Provision of services such as research on te chnology information, training human resources on 
technology information. 4.  Investment in production of semiconducto rs and electronic components; production of 
telecommunication and Internet equipment; application of new technology to produce 
telecommunication and communication equipment. 5.  Application of advanced technology; application of new technology in biology: for medical purpose, seeding production (plants and animals), biological fertilizers, biological insecticide and 
veterinarian vaccines; collection of garbage, trea tment of wastes and environmental pollution, and 
recycling of wastes and scrap materials. 6.  Application of technology to use or produc e machinery and equipment using biological energy, 
wind energy, solar energy, tidal energy and geothermic energy. 
7.  Consultancy on law, investment, business,  corporate management, science and technology; 
and protection of intellectual property rights and technology transfer. 
 
V. Other industries and business sectors: 
 1.  Growing of sugar cane, cotton and tea serving the processing industry; growing of plants for 
pharmaceutical purposes; and production of seeding plants and animals. 
2.  Production of toys for children; making textile fabric; production of silk and fibres of all types; tanning and processing of leather. 
3.  Husbandry of cattle and poultry and aquacultur e under programs to transfer the agricultural 
economic structure to a farm or larger scale. 4.  Production of basic chemicals, pure chemicals, chemicals for special use and dyes. 
5.  Investment in production of: medicines fo r human; medical equipment, orthopaedic devices, 
vehicles and tools specifically used for the disabled; construction of warehouses for protection of pharmaceutical products; reserves of medicine for humans for use in case of storms, floods, natural disasters, and dangerous epidemics; crop protective agents; medicine for prevention and 
treatment of animals and aquatic creatures. 
6.  Investment in production of: high-voltage and medium-voltage electrical equipment; diesel 
engines; equipment, machinery and components for transportation and fishing ships; machine 
tools, machinery, equipment and components for agricultural and forestry production; machinery 
for food production; machinery for textile and garment industries; machinery for the leather industry; mining machinery; machinery for construction; industrial robots; locomotives and railway 
compartments; automobiles of all types and their components; generators; precise mechanical 
devices; equipment and machinery for safety examination and supervision in industrial production; production of moulds and prototypes for metal and non-metal products; building and repair of boats and ships; production of waste treatment eq uipment and key industrial products as decided 
by the Prime Minister from time to time. 
7.  Production of high quality steel, alloy, non-fe rrous metals, rare and precious metals, foam iron 
for industrial use; production of special-use cement, soundproof, insulated and high heat insulated 
materials, synthetic materials used as a replacem ent for wood, construction plastics, fiberglass and 
fire-proof materials; coke coal and active coal; and production of fertilizers. 8.  Production of traditional handicrafts and fine arts: carving; mother-of pearl encrusting, lacquer; 
stone-engraving; bamboo and rattan products; carpet-weaving, silk-weaving, brocade-weaving, 
embroidery; production of pottery and porcelain pr oducts, production of fine-art copper products 
and " do" paper. 
9.  Investment in construction of class 1 markets, exhibition areas; trade promotion; securities 
business activities; activities in mobilizing capital and lending capital of people's credit funds. 
10.  Services of marine, aviation, railway, road and domestic waterway transportation. 11.  Investment in construction of national tourism sites, ecological tourism sites; national parks; 
investment in construction of cultural park complexes including all activities of sports, 
entertainment and recreation. 12.  Investment in high-tech production, processing and services in small and medium industrial 
zones and concentrated industrial areas. 
13.  Investment under the forms of build-operate-transfer contracts (BOT), build-transfer-operate contracts (BTO) and build-transfer contracts (BT). G/SCM/N/155/VNM 
 
- 39 - 
 
  ANNEX II 
INDUSTRIES AND BUSINESS SECTORS ELIGIBLE FOR DOMESTIC INVESTMENT INCENTIVES14 
(issued with the Government Decree No.35/2002/ND-CP dated 29/3/2002) 
 Investment projects in the following industries and business sectors shall be granted incentives: 
 
I. Afforestation or forest regeneration zo nes; planting of perennial trees on unused 
land or barren hills; land reclamation, salt-m aking, cultivation of marine products in 
unexploited waters:  
 
1. Planting of and caring for forests; 
2. Planting of long-term industrial crops an d fruit trees on fallow land or barren hills; 
3. Land reclamation for the purpose of produc tion of agriculture, forestry and fishery. 
4. Making, exploiting and refining salt; 5. Cultivation of marine products in unexploited natural waters. 
 
II. Construction of infrastructure; developm ent of public transportation; development 
of education, training, health care and traditional cultures:  
 
1.  Investment in new construction of power plants, power distribution and transmission, 
construction of facilities using power generated by sun, wind or bio-gases.  2.  Investment in new construction of water mills and water supply systems for industrial and 
living purposes; investment in construction of water drainage systems.  
3.  Investment in new construction or modernizat ion of road bridges, airports, harbours, stations, 
bus stops, parking spaces; construction of additional railway routes.  
4.  Construction of infrastructure for concentrated residential areas in the regions included in List B 
or List C issued with this Decree.  5.  Development of public transportation: invest ment in means of railway transportation, road 
transportation of passengers by automobiles of seventeen (17) seats or over, waterway 
transportation of passengers by motored vehicles.  
6.  Investment in provision of internet connection services, provision of internet access services, provision of internet application services in the regions included in List B or List C issued with this 
Decree; mail services and parcel services.  
7.  Establishment of semi-private, people-founded and private schools at the pre-school, pre-tertiary, specialized secondary, college and university levels.  
8.  Establishments for vocational training and improvement of skill levels of workers.  
9.  Establishment of traditional cultural houses, traditional dance, song and music ensembles; manufacture, production and repair of traditional musical instruments; maintenance and preservation of traditional cultural houses and museums.  
10.  Establishment of people-founded hospitals and private clinics for medical examination and 
treatment, establishment of facilities for ep idemic prevention and control and sanitation; 
establishment of centres for aid activities in intensive care of orphans and invalids, and geriatric 
centres. 
 III. Offshore fishing of marine products; processing of agricultural, forestry, and 
marine products; provision of technical services which directly cater for agriculture, 
forestry and fishing activities:  1.  Offshore fishing of marine products; 
2.  Support services for cultivation of agricultural crops, industrial crops and forestry crops; 
support activities for animal husbandry; forestry support activities; marine product services; services for protection of livestock; multiplication and cross-breeding for new varieties; services 
for preservation of agricultural, forestry and marine products; and construction of storehouses for 
preservation of agricultural, forestry and marine products.  
                                               
14 Related to Programme IV and IX of this Notification. G/SCM/N/155/VNM 
 
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  IV. Scientific and technology research an d development; scientific and technology 
services; legal consultancy, consultancy in respect of investment, business, corporate 
management, protection of intellectual pr operty rights and technology transfer: 
 
1.  Investment in construction of technical works and establishments; laboratories and 
experimental stations for the purpose of applying new technology to production; production of new materials and rare and precious materials.  
2.  Investment in production of computers and software products.  
3.  Provision of services of information technology research and training of information technology human resources.  4.  Investment in production of semi-conductors and electronic components; production of internet 
and telecommunications equipment; application of new technologies in production of information 
and telecommunications equipment.  5.  Hi-tech industrial application; application of new biological technology for health care purposes, 
in the production of seedlings, animals for breeding, bio-fertilizers, bio-insecticides and veterinary 
vaccines; in waste treatment, in environment pollu tion treatment, and in re-processing of scrap 
materials and refuse.  
6.  Application of technology to use or to produce machinery or equipment using bio-energy, wind 
energy, solar energy, geo-therma l energy or tidal energy.  
7.  Consultancy in respect of legal matters , investment, business management; consultancy 
services in respect of science and technology, transfer of intellectual property rights and 
technology transfer. 
 V. Investment in construction of producti on lines, in expansion of scale and in 
technology renovation; in environmenta l and ecological improvement and urban 
sanitation improvement; relocation of prod uction establishments to non-urban areas; 
diversification of industries, trades and products: 
 
1.  Investment in new production lines, investment in expansion of scale and investment in technology renovation in the industries and trades stipulated in this List.  2.  Investment in waste treatment facilities for environment protection; and collection of waste.  
3.  Investment in relocation of production establishments to non-urban areas, industrial zones, 
export-processing zones, hi-tech zones or industrial complexes.   
VI. Other industries and trades: 
 1.  Planting sugarcane, planting cotton, planting tea for industrial processing; planting medicinal 
herbs; and production of seedlings and animals for breeding.  
2.  Production of children's toys; weaving fabric or  completion of textile products; production of all 
types of silk threads and fibres; tanning and preliminary treatment of leather.  3.  Rearing of livestock or poultry and aquaculture under the program for transition in the 
agricultural economic structure on a farm or larger scale.  
4. Production of basic chemicals, pure ch emicals, specialized chemicals and dyes.  
5.  Investment in production of pharmaceutical  medicines for human beings; medical equipment, 
orthopaedic equipment, specialized vehicles or equipment for the disabled; construction of 
storehouses for preservation of pharmaceutical products; storage of treatment medicines for human beings in cases of floods, storms, natural calamities or dangerous epidemics; vegetation 
protection medicines; prevention and treatment medicines for animals and aquatic creatures. 
6.  Investment in manufacture of medium- and high -voltage electric instruments; diesel engines; 
equipment and spare parts for transportation and fishing ships; machine tools, machinery, equipment, spare parts and other machines for agricultural and forestry production; food 
processing machinery; machinery for textile and garment industries; machinery for the leather 
industry; mining machinery; construction machinery; industrial robots; locomotives and carriages; automobiles of all types and automobile spare parts; electric generators; precision mechanical 
equipment; equipment and machinery for safety testing and control of industrial production 
processes; manufacture of moulds for metal and non-metal products; building and repair of ships and boats; and manufacture of waste treatment equipment.  
7.  Production of high quality steel, alloy, non-ferrous metals, rare and precious metals, soft iron 
used for industrial purposes; production of specialized cement, highly thermal insulating materials, electric insulating materials, soundproofing materials; synthesized materials to replace wood, plastic for construction, glass fibres, fireproof materials; coke coal, activated charcoal; and 
manufacture of fertilizers.  G/SCM/N/155/VNM 
 
- 41 - 
 
  8.  Traditional industries and trades, such as carving, mother-of-pearl inlay, lacquer ware, stone 
carving; rattan and bamboo articles, carpets, silk weaving, brocade weaving, embroidery and lace 
making; production of ceramics and china; production of copper fine art articles; production of rhamnoneuron paper.  
9.  Investment in class-1 markets and exhibition centres; trade promotion, capital raising and loan 
activities of people 's credit funds.  
10.  Pilot and salvage operations at sea.  
11.  Investment in construction of national tourist sites, ecological tourist sites, and national 
parks; investment in construction of cultural park complexes with sport, recreational and entertainment activities.  12.  Investment in construction and operation of infrastructure in industrial zones, export 
processing zones and high-tech zones. Investment in production and processing in industrial 
zones, export processing zones, high-tech zones, small- and medium-scale industrial zones and in 
industrial complexes.  G/SCM/N/155/VNM 
 
- 42 - 
 
  ANNEX III 
REGIONS WITH DIFFICULT SOCIO-ECONOMIC CONDITIONS15  
(For consideration of eligibility of corporate income tax incentives as from 1 January 2004 and 
eligibility of domestic investment incentives) 
 
I. Districts in high  mountain provinces: 
 
1. Bac Kan Province:  1. Bac Kan Township 
2. Cao Bang Province: 
 1. Cao Bang Township 3. Ha Giang Province: 
 1. Bac Quang District 
 2. Ha Giang Township 4. Lai Chau Province: 
 1. Dien Bien Phu Township 
 2. Dien Bien District  3. Lai Chau Township  5. Lao Cai Province  1. Bao Thang District 
 2. Cam Duong Township 
 3. Lao Cai Township 6. Son La Province 
 1. Mai Son District 
 2. Son La Township  3. Yen Chau District 
 
II. Districts in mountaino us and plain provinces: 
 
7. Bac Giang Province: 
 1. Luc Ngan District  2. Luc Nam District 
 3. Yen The District 
8. Hoa Binh Province:  1. Kim Boi District 
 2. Ky Son District 
 3. Lac Son District  4. Luong Son District 
 5. Lac Thuy District 
 6. Tan Lac District  7. Yen Thuy District  8. Cao Phong District 
9. Lang Son Province: 
 1. Bac Son District  2. Cao Loc District 
 3. Chi Lang District 
 4. Huu Lung District  5. Loc Binh District 
 6. Trang Dinh District 
 7. Van Lang District  8. Van Quan District 10. Phu Tho Province: 
 1. Doan Hung District 
 2. Ha Hoa District  3. Song Thao District 
 4. Thanh Ba District 
 5. Tam Thanh District  6. Phu Ninh District  11. Quang Ninh Province:  1. Hoanh Bo District  2. Hai Ninh District 
 3. Tien Yen District 
 4. Van Don District  5. Hai Ha District 
 6. Dam Ha District 
12. Tuyen Quang Province:  1. Ham Yen District 
 2. Son Duong District 
 3. Yen Son District  4. Tuyen Quang Township 13. Thai Nguyen Province: 
 1. Dong Hy District 
 2. Dai Tu District  3. Dinh Hoa District 
 4. Phu Luong District 
14. Yen Bai Province:  1. Tran Yen District 
 2. Van Yen District 
 3. Van Chan District  4. Yen Binh District  5. Nghia Lo Township 
15. Binh Phuoc Province: 
 1. Dong Phu District  2. Phuoc Long District 
 3. Binh Long District 
 4. Chon Thanh District 
16. Dak Lak Province: 
 1. Cu Jut District  2. Cu M'gar District  3. Dak R'Lap District 
 4. Dak Mil District 
 5. Ea H'Leo District  6. Ea Kar District 
 7. Krong Pac District 
 25. Nghe An Province: 
 1. Anh Son District  2. Nghia Dan District  3. Tan Ky District 
 4. Thanh Chuong District 
26. Ninh Thuan Province:  1. Ninh Hai District 
 2. Ninh Phuoc District 
                                               
15 Related to Programmes III, IV, V, VI and IX of this Notification.  G/SCM/N/155/VNM 
 
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   8. Krong Buk District 
 9. Krong Ana District  10. Krong Nang District. 17. Gia Lai Province: 
 1. An Khe District 
 2. Ayun Pa District  3. Chu Se District 
18. Kon Tum Province: 
 1. Kon Tum Township 19. Lam Dong Province:  1. Bao Lam District 
 2. Cat Tien District 
 3. Di Linh District  4. Da Teh District 
 5. Don Duong District 
 6. Duc Trong District  7. Da Huoai District 
 8. Lam Ha District 
20. Binh Thuan Province:  1. Bac Binh District  2. Duc Linh District 
 3. Ham Thuan Bac District 
 4. Tanh Linh District  5. Ham Thuan Nam District 
21. Binh Dinh Province: 
 1. Hoai An District  2. Phu My District 
 3. Phu Cat District 
 4. Tay Son District. 22. Hai Duong Province:  1. Chi Linh District 
 2. Kinh Mon District 
23. Ha Tinh Province:  1. Huong Khe District 
 2. Huong Son District 
 3. Ky Anh District  4. Nghi Xuan District 
 5. Vu Quang District 
24. Ninh Binh Province:  1. Tam Diep Township  2. Nho Quan District 
 3. Yen Mo District 
 27. Phu Yen Province: 
 1. Song Cau District  2. Tuy Hoa District  3. Tuy An District 
28. Quang Tri Province: 
 1. Dak Rong District  2. Vinh Linh District 
 3. Gio Linh District 
 4. Cam Lo District  5. Trieu Phong District  6. Hai Lang District 
29. Quang Nam Province: 
 1. Dai Loc District  2. Que Son District 
30. Quang Ngai Province: 
 1. Nghia Hanh District  2. Son Tinh District 
31. Thanh Hoa Province: 
 1. Thach Thanh District. 32. Thua Thien Hue Province:  1. Nam Dong District 
 2. Quang Dien District 
 3. Phong Dien District  4. Huong Tra District 
 5. Phu Loc District 
 6. Phu Vang District 33. An Giang Province: 
 1. An Phu District 
 2. Tri Ton District  3. Tinh Bien District  4. Thoai Son District 
34. Bac Lieu Province: 
 1. Bac Lieu Township  2. Vinh Loi District 
35. Ca Mau Province: 
 1. Thoi Binh District  2. Tran Van Thoi District 
 3. Cai Nuoc District 
 4. Dam Doi District  5. Ngoc Hien District 
36. Dong Nai Province: 
 1. Dinh Quan District 
 2. Tan Phu District  3. Xuan Loc District 
 4. Long Khanh District 
37. Kien Giang Province:  1. Chau Thanh District  2. Hon Dat District 
 3. Giong Rieng District 
 4. An Minh District  5. Tan Hiep District 
 6. Ha Tien Township 
 7. Kien Luong District 38. Khanh Hoa Province: 
 1. Van Ninh District 
 2. Cam Ranh District  3. Dien Khanh District 39. Soc Trang Province: 
 1. Long Phu District 
 46. Dong Thap Province:  1. Hong Ngu District 
 2. Tan Hong District  3. Tam Nong District 
 4. Thap Muoi District 
47. Tien Giang Province:  1. Tan Phuoc District 48. Quang Binh Province: 
 1. Quang Ninh District 
 2. Le Thuy District  3. Bo Trach District 
 4. Quang Trach District 
49. Ba Ria - Vung Tau Province:  1. Chau Duc District 
 2. Xuyen Moc District 
50. Vinh Long Province:  1. Tra On District  2. Tam Binh District 
 3. Binh Minh District G/SCM/N/155/VNM 
 
- 44 - 
 
   2. My Xuyen District 
 3. Soc Trang Township  4. Cu Lao Dung District 40. Tra Vinh Province: 
 1. Cau Ngang District 
 2. Cau Ke District  3. Tieu Can District 
41. Vinh Phuc Province: 
 1. Lap Thach District  2. Tam Duong District  3. Binh Xuyen District 
42. Can Tho Province: 
 1. Long My District  2. Vi Thuy District 
 3. O Mon District 
43. Tay Ninh Province:  1. Tan Bien District 
 2. Tan Chau District 
 3. Tan Thanh District  4. Ben Cau District 44. Thai Binh Province: 
 1. Thai Thuy District 
45. Long An Province:  1. Duc Hue District 
 2. Tan Hung District 
 3. Vinh Hung District  4. Moc Hoa District 
 5. Tan Thanh District 
 6. Duc Hoa District 51. Ha Noi City: 
 1. Soc Son District 52. Ho Chi Minh City:  1. Can Gio District 
 2. Nha Be District 
53. Ben Tre Province:  1. Thanh Phu District 
 2. Ba Tri District 
 3. Binh Dai District 54. Bac Ninh Province:  1. Gia Binh District 
 2. Que Vo District 
55. Ha Tay Province:  1. Ba Vi District 
56. Da Nang City: 
 1. Hoa Vang District 57. Ha Nam Province: 
 1. Thanh Liem District 
58. Hung Yen Province:  1. An Thi District  2. Phu Cu District 
 3. Tien Lu District 
59. Binh Duong Province  1. Phu Giao District 
 
 
 G/SCM/N/155/VNM 
 
- 45 - 
 
  ANNEX IV 
REGIONS WITH ESPECIALLY DIFFICU LT SOCIO-ECONOMIC CONDITIONS16  
(For consideration of eligibility of corporate income tax incentives as from 1 January 2004 and 
eligibility of domestic investment incentives) 
 
I. Districts in high mountai n provinces and on islands: 
 
1. Bac Kan Province:  1. Ba Be District 
 2. Bach Thong District 
 3. Cho Moi District  4. Cho Don District 
 5. Ngan Son District 
 6. Na Ri District  7. Pac Nam District 
2. Cao Bang Province: 
 1. Bao Lac District  2. Ha Lang District  3. Ha Quang District 
 4. Hoa An District 
 5. Nguyen Binh District  6. Quang Uyen District 
 7. Thong Nong District 
 8. Tra Linh District  9. Thach An District 
 10. Trung Khanh District 
 11. Phuc Hoa District 3. Ha Giang Province:  1. Bac Me District 
 2. Dong Van District 
 3. Hoang Su Phi District  4. Meo Vac District 
 5. Quan Ba District 
 6. Vi Xuyen District  7. Xin Man District 
 8. Yen Minh District 
4. Lai Chau Province:  1. Muong Lay District  2. Muong Te District 
 3. Phong Tho District 
 4. Tua Chua District  5. Tuan Giao District 
 6. Sin Ho District 
 7. Dien Bien Dong District  8. Muong Nhe District 
 9. Tam Duong District   5. Lao Cai Province: 
 1. Bac Ha District 
 2. Bat Sat District 
 3. Muong Khuong District  4. Than Uyen District 
 5. Van Ban District 
 6. Sa Pa District  7. Bao Yen District 
6. Son La Province: 
 1. Bac Yen District  2. Moc Chau District  3. Muong La District 
 4. Quynh Nhai District 
 5. Thuan Chau District  6. Song Ma District 
 7. Phu Yen District 
7. Binh Thuan Province:  1. Phu Quy District 
8. Ba Ria - Vung Tau Province: 
 1. Con Dao District 9. Da Nang City:  1. Hoang Sa Island District 
10. Hai Phong City: 
 1. Bach Long Vi District  2. Cat Hai District 
11. Khanh Hoa Province: 
 1. Truong Sa District 12. Kien Giang Province: 
 1. Kien Hai District 
 2. Phu Quoc District 13. Quang Ninh Province:  1. Co To District 
14. Quang Ngai Province: 
 1. Ly Son District  
 
II. Districts in mountainous provinces and plain regions: 
 
15. Bac Giang Province: 
 1. Son Dong District 16. Hoa Binh Province: 
 1. Da Bac District 
 2. Mai Chau District 17. Lang Son Province: 
 1. Binh Gia District 
 2. Dinh Lap District 
 27. Kien Giang Province:  1. An Bien District  2. Go Quao District 
 3. Vinh Thuan District 
28. Soc Trang Province:  1. My Tu District 
 2. Thanh Tri District 
 3. Vinh Chau District 
                                               
16 Related to Programmes III, IV, V,  VI and IX of this Notification. G/SCM/N/155/VNM 
 
- 46 - 
 
  18. Phu Tho Province: 
 1. Thanh Son District  2. Yen Lap District 19. Quang Ninh Province: 
 1. Ba Che District 
 2. Binh Lieu District 20. Tuyen Quang Province: 
 1. Chiem Hoa District 
 2. Na Hang District 21. Thai Nguyen Province:  1. Vo Nhai District 
22. Yen Bai Province: 
 1. Luc Yen District  2. Mu Cang Chai District 
 3. Tram Tau District 
23. Dak Lak Province:  1. Dak Nong District 
 2. Krong No District 
 3. Krong Bong District  4. Lak District  5. Buon Don District 
 6. M'Drak District 
 7. Ea Sup District  8. Dak Song District 
24. Gia Lai Province: 
 1. Duc Co District  2. K'Bang District 
 3. Krong Pa District 
 4. Kon Ch'ro District  5. Mang Yang District  6. Ia Grai District 
 7. Chu Prong District 
 8. Chu Pah District 25. Kon Tum Province: 
 1. Dak To District 
 2. Dak Glei District  3. Kon Plong District 
 4. Sa Thay District 
 5. Dak Ha District  6. Ngoc Hoi District  7. Kon Ray District 
26. Lam Dong Province: 
 1. Lac Duong District 
  4. Cu Lao Dung District 
29. Tra Vinh Province:  1. Chau Thanh District  2. Tra Cu District 
30. Binh Dinh Province: 
 1. An Lao District  2. Vinh Thanh District 
 3. Van Canh District 
31. Khanh Hoa Province:  1. Khanh Vinh District  2. Khanh Son District 
32. Ninh Thuan Province: 
 1. Ninh Son District 33. Ba Ria - Vung Tau Province: 
 1. Tan Thanh District 
34. Bac Lieu Province:  1. Hong Dan District 
35. Binh Phuoc Province: 
 1. Bu Dang District  2. Loc Ninh District  3. Bu Dop District 
36. Ca Mau Province: 
 1. U Minh District 37. Thanh Hoa Province: 
 1. Quan Hoa District 
 2. Ba Thuoc District  3. Lang Chanh District 
 4. Thuong Xuan District 
 5. Quan Son District  6. Muong Lat District  7. Nhu Xuan District 
 8. Ngoc Lac District 
 9. Cam Thuy District  10. Nhu Thanh District 
38. Nghe An Province: 
 1. Ky Son District  2. Tuong Duong District 
 3. Con Cuong District 
 4. Que Phong District  5. Quy Hop District  6. Quy Chau District 
39. Quang Binh Province: 
 1. Minh Hoa District  2. Tuyen Hoa District 
 
  
40. Quang Tri Province: 
 1. Huong Hoa District 41. Thua Thien Hue Province:  1. A Luoi District 
42. Quang Nam Province: 
 1. Hien District  2. Giang District 
 3. Phuoc Son District 
 4. Tra My District  5. Hiep Duc District 
 6. Tien Phuoc District 
 7. Nui Thanh District  8. Dong Giang District  9. Tay Giang District  43. Quang Ngai Province:  1. Ba To District  2. Tra Bong District  3. Son Tay District 
 4. Son Ha District 
 5. Minh Long District  6. Binh Son District 
44. Phu Yen Province: 
 1. Son Hoa District  2. Song Hinh District 
 3. Dong Xuan District G/SCM/N/155/VNM 
 
- 47 - 
 
  ANNEX V 
LIST OF BUSINESS SECTORS WHERE FOREIGN INVESTMENT IS ESPECIALLY ENCOURAGED17  
(Issued with the Government Decree No.27/2003/ND-CP dated 19 March 2003 revising and 
supplementing some Articles of the Decree No .24/2000/ND-CP dated 31 July 2000 promulgating 
details for implementation of the Law on Foreign Investment in Vietnam) 
 
- Producing various kinds of new strains with high quality and high economic efficiency; - Cultivation of agricultural, forestry and aquaculture products; - Production of high-quality steel, alloy, non-ferrous metal, special metal, steel billet, sponge 
iron; iron metallurgy; 
- Manufacturing of machinery, equipment and component packs for oil and gas exploitation, 
mining, and energy fields; manufacturing of large-scale lifting equipment; manufacturing 
machine tools for metal processing, metallurgy equipment; 
- Producing medical equipment for analytical and extractive technologies in medical sector; - Manufacturing equipment for testing toxicity in foodstuffs ; 
- Manufacturing new materials and precious and rare materials; applying new bio-technology 
and new technology for manufacturing communications and telecommunications equipment; 
- Manufacturing information technology products; - High-tech industry; 
- Investment in research and development (R&D) of 25% of turnover; 
- Producing equipment for waste treatment; - Treatment of pollution and protection of environment, treatment of waste; 
- Producing materials for antibiotic drugs; 
- Investment under BOT, BTO and BT contracts. 
                                               
17 Related to Programme V and VI of this Notification. G/SCM/N/155/VNM 
 
- 48 - 
 
  ANNEX VI 
LIST OF BUSINESS SECTORS WHERE FOREIGN INVESTMENT IS ENCOURAGED18  
(Issued with the Government Decree No.27/2003/ND-CP dated 19 March 2003 revising and 
supplementing some Articles of the Decree No .24/2000/ND-CP dated 31 July 2000 promulgating 
details for implementation of the Law on Foreign Investment in Vietnam) 
 
- Exploration, mining and down-stream processing of minerals; - Regular employment of five hundred (500) or more employees; - Preserving foodstuffs; post-harvest preservation of agricultural products; 
- Development of petro-chemical industry; constr uction and operation of oil and gas pipelines, 
oil storage and ports; 
- 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; manufacturing technical equipment for transportation industry; 
- Building ships; manufacturing marine engines, equipment and parts for transportation ships 
and fishing ships; 
- Manufacturing communications and telecommunications equipment; 
- Manufacturing electronic equipment and components; 
- Manufacturing agricultural and forestry equipment, parts and machines, irrigation 
equipment; 
- Manufacturing equipment for the textiles and garment industry; 
- Producing various types of materials for pesticides; - Producing basic chemicals of various kinds, purified chemicals and dyes; specialized 
chemicals; 
- Producing materials for cleansing chemic als and additives for chemical industry; 
- Producing special cement, composite materials, and sound, electricity and heat insulating - Materials, and wood-substitute synthetic material s, fire-proof materials, construction plastic 
and fiberglass; 
- Manufacturing light construction materials of various kinds; - Producing paper pulp; 
- Producing special silk, fibres and fabric for industry; 
- Producing medicine materials; medicine products for treating humans with international GMP 
standard; 
- Upgrading and developing energy sources; 
- Public passenger transportation; 
- Construction and upgrading of bridges, roads, railways, airports, ports, railway stations; - 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; 
- Technical services for agriculture, forestry and fisheries. 
 
 
                                               
18 Related to Programme V and VI of this Notification. G/SCM/N/155/VNM 
 
- 49 - 
 
  ANNEX VII 
LIST OF REGIONS WHERE FOREIGN INVESTMENT IS ENCOURAGED19 
(Issued with the Government Decree No.27/2003/ND-CP dated 19 March 2003 revising and 
supplementing some Articles of the Decree No .24/2000/ND-CP dated 31 July 2000 promulgating 
details for implementation of the Law on Foreign Investment in Vietnam) 
 
No. Province/City Section A: 
Regions with special difficult 
socio-economic conditions Section B: 
Regions 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, 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, Thuan Thanh Districts 
16 Ha Noi  Soc Son District 
17 Ha Tay  Ba Vi, My Duc, Phuc Tho, Quoc 
Oai, Thach That, Ung Hoa Districts 
18 Quang Ninh Ba Che, Binh Lieu, Dam Ha, Hai 
Ha, Hoanh Bo, Tien Yen, Dong 
Trieu Districts and Mong Cai Town Yen Hung District and Cam Pha 
and Uong Bi Towns 
19 Hai Phong  Vinh Bao, 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 Đinh  All districts and Nam Dinh City 
25 Ninh Binh Nho Quan, Yen Mo, Gia Vien 
Districts Tam Điep Town and all districts 
not in Section A 
26 Thanh Hoa Lang Chanh, Thuong Xuan, Quan 
H o a ,  B a  T h u o c ,  N g o c  L a c ,  N h u  Xuan, Cam Thuy, Thach Thanh, 
Quan Son, Muong Lat Districts All 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, Do Luong Districts Cua Lo Town and all 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 
                                               
19 Related to Programmes V and VI of this Notification. G/SCM/N/155/VNM 
 
- 50 - 
 
  31 Thua Thien Hue All districts Hue City 
32 Đa Nang  Hoa Vang, Thanh Khe, Ngu 
Hanh Son, 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 Đinh All districts Quy Nhon City 
36 Phu Yen All districts Tuy Hoa Town 
37 Khanh Hoa Khanh Son, Vinh Trinh Districts All districts not in Section A 
38 Binh Thuan  All districts Phan Thiet City 
39 Ninh Thuan All districts Phan Rang Town 
40 Kon Tum All districts and towns  
41 Gia Lai All districts and towns  
42 Đak Lak All districts and Buon Ma Thuot 
Town  
43 Lam Đong All districts, towns and Da Lat City  
44 Đong Nai Dinh Quan, Tan Phu, Xuan Loc 
Districts  
45 Binh Phuoc All districts and towns  
46 Binh Duong  Ben Cat, Phu Giao, Tan Uyen, 
Dau Tieng Districts 
47 Tay Ninh All districts Tay Ninh Town 
48 Ho Chi Minh City  Can Gio, Cu Chi Districts 
 
49 Ba Ria - Vung Tau  Long Dat, Xuyen Moc Districts 
50 Long An All districts Tan An Town 
51 Đong 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 Th ơ 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  G/SCM/N/155/VNM 
 
- 51 - 
 
  ANNEX VIII 
LIST OF INDUSTRIES AND BUSINESS SECTORS ELIGIBLE FOR SPECIAL INVESTMENT 
INCENTIVES20 
(Issued with the Government Decree No.108/2006/ND-CP dated 22 September 2006 promulgating 
details and providing guidelines to implement some Articles of the Investment Law) 
 
I. MANUFACTURE OF NEW MATERIALS AND PRODUCTION OF NEW ENERGY; MANUFACTURE OF PRODUCTS OF HIGH TECHNOLOGY, OF BIO-TECHNOLOGY AND OF INFORMATION TECHNOLOGY; ME CHANICAL MANUFACTURING: 
 
1.  Manufacture of composite materials, light construction materials, precious and rare materials. 2.  Manufacture of high-quality steel, alloys, special metal, porous iron and steel billet. 
3.  Investment in the construction of establishments using solar energy, wind energy, biogas, 
geothermic and tidal energy. 4.  Production of medical equipment for analytical  and extractive technology in the medical sector; 
orthopaedic equipment, specialized vehicles and equipment for the disabled. 
5.  Application of advanced technology, bio-tec hnology for production of medicines for human use 
up to international GMP standard; production of antibiotic materials. 6.  Production of computers, telecommunication and communication and Internet equipment and 
key information technology products. 
7.  Production of semi-conductors and hi-tech electronic components; production of software products, items of digital information; provision of services on software, research into information 
technology and training of human resources for information technology. 
8.  Investment in the production and manufacture  of precision mechanical engineering equipment; 
equipment and machines for examination and control of industrial manufacturing safety; industrial 
robots. 
 II. BREEDING, REARING, GR OWING AND PROCESSING AGRICULTURAL, FOREST AND 
AQUACULTURE PRODUCTS; SALT MAKING; PROD UCTION OF ARTIFICIAL STRAINS, NEW 
PLANT VARIETIES AND LIVESTOCK BREEDS: 
 9.  Afforestation, tending of forests. 
10.  Breeding, rearing and growing agricultural, forest and aquaculture products on uncultivated 
land, unexploited waters. 11.  Fishery in offshore sea waters. 
12.  Production of artificial strains, new plant varieties and livestock breeds of high economic 
value. 13.  Production, mining and refining of salt.  
III. USE OF HIGH TECHNOLOGY AND MODE RN TECHNIQUES; PROTECTION OF THE 
ECOLOGICAL ENVIRONMENT; RESEARCH, DEVELOPMENT AND NURSERY OF HIGH TECHNOLOGY: 
 
14.  Application of high technology or new techno logy which has not yet been used in Viet Nam; 
application of bio-technology. 
15.  Treatment of pollution and protection of en vironment; production of equipment for pollution 
treatment and equipment for observatio n and analysis of the environment. 
16.  Collection and treatment of wastewater, wa ste gas and solid waste; recycling or reuse of 
waste. 
17.  Research, development and nursery of high technology. 
 IV. LABOR INTENSIVE INDUSTRIES: 
 
18.  Projects employing 5,000 or more employees on a regular basis.  
                                               
20 Related to Programme III, IV, V and VI of this Notification. G/SCM/N/155/VNM 
 
- 52 - 
 
  V. CONSTRUCTION AND DEVELOPMENT OF INFRASTRUCTURES AND IMPORTANT 
PROJECTS:  19.  Investment in the construction and commercial operation of infrastructures of industrial parks, 
export processing zones, hi-tech parks and economic zones or important projects falling within the 
deciding competence of the Prime Minister.  
VI. DEVELOPMENT OF EDUCATION, TRAINI NG, HEALTH CARE, PH YSICAL TRAINING 
AND SPORTS:  20.  Investment in the construction of facilities for treatment of tobacco or drug addiction. 
21.  Investment in the establishment of fac ilities for epidemic prevention and control. 
22.  Investment in the establishment of geriatric centres or centres for relief and care of the disabled and orphans. 
23.  Investment in the construction of centres of training for high-achievement sports, sport 
training for the disabled; the construction of sport facilities with training and competition equipment satisfying requirements for organization of international tournaments. 
 
VII. OTHER MANUFACTURING AND SERVICE SECTORS:  24.  Investment in research and development (R & D) accounting for 25% or more of the revenue. 
25.  Salvage operations at sea. 
26.  Investment in the construction of apartment buildings for workers working in industrial parks, 
export processing zones, hi-tech parks and economic zones; investment in the construction of 
dormitories for students and of residential houses for social policy beneficiaries. G/SCM/N/155/VNM 
 
- 53 - 
 
  ANNEX IX 
LIST OF INDUSTRIES AND BUSINESS SECTORS ELIGIBLE FOR INVESTMENT INCENTIVES21 
(Issued with the Government Decree No.108/2006/ND-CP dated 22 September 2006 promulgating 
details and providing guidelines to implement some Articles of the Investment Law) 
 
I. MANUFACTURE OF NEW MATERIALS AND PRODUCTION OF NEW ENERGY; 
MANUFACTURE OF PRODUCTS OF HIGH-TECHNOLOGY, OF BIO-TECHNOLOGY OR OF INFORMATION TECHNOLOGY; ME CHANICAL MANUFACTURING: 
 
1.  Production of soundproof, electricity insulated or high heat-insulated materials; synthetic 
materials used as a substitute for wood; fire-proof materials; construction plastics; glass fibre; special-use cement. 
2.  Production of non-ferrous me tals and refining of cast iron. 
3.  Production of molds and prototypes for metal and non-metal products. 4.  Investment in the construction of new powe r plants, in power distribution and transmission. 
5.  Production of medical supplies and equipment, construction of warehouses for preservation of 
pharmaceutical products, reserves of medicines for human use in case of natural disasters and dangerous epidemics. 6.  Production of equipment used for testing toxic substances in foodstuffs. 
7.  Development of the petrochemical industry. 
8.  Production of coke and active coal. 9.  Production of plant protection drugs, pesticides, preventive and curative drugs for animals and 
aquatic creatures; veterinary drugs. 
10.  Materials for production of medicines or medicines for prevention or treatment of social diseases; vaccines; biological products; medicines produced from pharmaceutical materials; 
eastern medicines. 
11.  Investment in the construction of facilities for biological experiment, assessment of the availability of medicines; pharmaceutical establishments satisfying GMP standards in producing, preserving, testing, and carrying out clinical tests of medicines, planting, rearing or harvesting and 
processing of pharmaceutical materials. 
12.  Development of sources of pharmaceutical materials and production of medicines from pharmaceutical materials; projects for research or substantiation of scientific grounds for 
prescriptions for eastern medicines and formulation of standards for testing of prescriptions for 
eastern medicines; survey and statistics of types of pharmaceutical materials used for production of medicines; collection, inheritance and applicatio n of prescriptions for eastern medicines, finding, 
exploitation and use of new pharmaceutical materials. 
13.  Production of electronic appliances. 14.  Production of machines, equipment and detail assemblies for the following sectors: oil and gas exploitation, mining, energy and cement; production of large-sized lifting equipment; production of 
machine tools for metal processing and metallurgy equipment. 
15.  Investment in the manufacture of high and me dium voltage electric devices or generators of 
large capacity. 
16.  Investment in the production of diesel engines;  investment in the repair or building of ships; 
equipment and spare parts for transportation ships and fishing ships; production of dynamic and hydraulic machinery and spare parts and compressing machines. 
17.  Production of equipment, vehicles and machinery for construction; technical equipment for the 
transportation sector; locomotives and carriages; 18.  Investment in the manufacture of machine tools, machinery, equipment and components for 
agricultural and forest production; machinery for food processing; irrigation equipment. 
19.  Investment in the production of equipment, machinery for textiles, garments and leather 
industries.  
II. BREEDING, REARING, GROWING AND PR OCESSING OF AGRICULTURAL, FOREST 
AND AQUACULTURE PRODUCTS; SALT MAKING; PRODUCTION OF ARTIFICIAL STRAINS, NEW PLANT VARIETIES AND LIVESTOCK BREEDS: 
 
20.  Growing of plants for pharmaceutical purposes. 
                                               
21 Related to Programme III, IV, V and VI of this Notification.  G/SCM/N/155/VNM 
 
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  21.  Investment in post-harvest preservation of agricultural products, preservation of agricultural 
and aquaculture products and foodstuffs. 22.  Production of bottled or canned fruit juices. 23.  Production and refining of feed fo r cattle, poultry and aquatic resources. 
24.  Technical services for planting industrial an d forest trees, husbandry, aquaculture, protection 
of plants and livestock. 25.  Production, multiplication or crossbreeding for new plant varieties or livestock breeds. 
 
III. USE OF HIGH TECHNOLOGY AND MODE RN TECHNIQUES; PROTECTION OF THE 
ECOLOGICAL ENVIRONMENT; RESEARCH, DEVELOPMENT AND NURSERY OF HIGH TECHNOLOGY: 
 
26.  Manufacture of equipment for responding to and dealing with oil spills. 27.  Manufacture of equipment for waste treatment. 
28. Investment in the construction of technical fa cilities and works: laboratories and experimental 
stations to apply new technology to production; investment in the establishment of research institutes. 
 
IV. LABOR INTENSIVE INDUSTRIES:  29.  Projects regularly employing between 500 and 5,000 employees. 
 
V. CONSTRUCTION AND DEVELO PMENT OF INFRASTRUCTURES: 
 
30.  Construction of infrastructures serving prod uction and business of cooperatives and life of 
communities in rural areas. 31.  Investment in and commercial operation of infrastructures and investment in the production 
in industrial complexes, industrial spots, complexes of rural trade villages. 
32.  Construction of water plants and water supply systems for civil and industrial use; investment in the construction of water drainage systems. 33.  Construction and upgrading of bridges, roads, terminals, airports, seaports, railway stations, 
bus stations and parking lots; establishment of new railway routes. 
34.  Construction of technical infrastructures of concentrated population areas in the geographical areas in Appendix II to this Decree. 
 
VI. DEVELOPMENT OF EDUCATION, TRAINING, HEALTH CARE, PHYSICAL TRAINING, SPORTS AND NATIONAL CULTURE: 
 
35.  Investment in the construction of infrastructures for education and training establishments; investment in the construction of people-founded and private schools and education and training establishments at the levels of pre-school education; general education, vocational high-school 
education and tertiary education. 
36.  Establishment of people-founded and private hospitals. 37.  Construction: physical training or sport centres, training facilities and physical training and 
sports clubs; establishments for production, manufacture and repair of equipment, supplies and 
equipment for physical training and sports. 38.  Establishment of national cultural houses; national dance, music and song troupes; theatres, 
film studios, cinemas; establishments for production, manufacture and repair of national musical 
instruments; maintenance and preservation of museums, national cultural houses and culture and arts schools. 39.  Investment in the construction of national tourist sites, ecological tourist sites and cultural 
parks for sports, entertainment and recreation activities. 
 VII. DEVELOPMENT OF TRADITIO NAL TRADES AND OCCUPATIONS: 
 
40.  Building up and development of traditional tr ades and occupations for production of fine-art 
and handicraft goods, processing of agricultural  products and foodstuffs and cultural products. 
 G/SCM/N/155/VNM 
 
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  VIII. OTHER MANUFACTURIN G AND SERVICE SECTORS: 
 41.  Provision of Internet connection, access and application services and points for accessing public telephones in areas in Appendix II to this Decree. 
42.  Development of mass transit including: transportation by ships, aircraft; railway 
transportation; road transportation of passengers by cars with 24 seats or more; transportation of passengers by modern and high-speed vehicles by inland waterway; container transportation. 
43.  Investment in the relocation of production establishments to non-urban areas. 
44.  Investment in the construction of class-I marketplaces and exhibition centres. 45.  Production of children’s toys. 46.  Activities in mobilizing capital and lending capital of peoples credit funds. 
47.  Legal consultancy, services of consultancy on intellectual property and technology transfer. 
48.  Production of various types of materials for production of pesticides. 49.  Production of base chemicals, purified chemicals, special-use chemicals and dyes. 
50.  Production of materials for production of de tergents and additives for the chemical industry. 
51.  Production of paper, cartons, artificial planks from domestic agricultural and forest materials; production of pulp. 
52.  Weaving and fashioning of textile products; production of silk and fibres of all types; tanning 
and processing of leather. 53.  Investment projects on production activities in industrial parks established under decisions of the Prime Minister. G/SCM/N/155/VNM 
 
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  ANNEX X 
LIST OF REGIONS WITH DIFFICULT SOCIO-ECON OMIC CONDITIONS AND ESPECIALLY DIFFICULT 
SOCIO-ECONOMIC CONDITIONS ELIG IBLE FOR INVESTMENT INCENTIVES22 
(Issued with the Government Decree No. 108/2006/ND-CP dated 22 September 2006 
promulgating details and providing guidelines to implement some Articles of the Investment Law) 
 
Ordinal 
number Province Regions with especially 
difficult socio-economic 
conditions Regions with difficult socio-
economic conditions 
1 Bac Kan All districts and towns  2 Cao Bang All districts and towns  3 Ha Giang All districts and towns  4 Lai Chau All districts and towns  5 Son La All districts and towns  6 Dien Bien All districts and Dien Bien city  7 Lao Cai All districts Lao Cai City 
8 Tuyen 
Quang Na Hang and Chiem Hoa districts Ham Yen, Son Duong and Yen 
Son districts and Tuyen Quang 
town 
9 Bac Giang Son Dong district Luc Ngan, Luc Nam, Yen The and 
Hiep Hoa districts 
10 Hoa Binh Da Bac and Mai Chau districts Kim Boi, Ky Son, Luong Son, Lac 
Thuy, Tan Lac, Cao Phong, Lac 
Son and Yen Thuy districts 
11 Lang Son Binh Gia, Dinh Lap, Cao Loc, Loc 
Binh, Trang Dinh, Van Lang and 
Van Quan districts Bac Son, Chi Lang and Huu Lung 
districts 
12 Phu Tho Thanh Son and Yen Lap districts Doan Hung, Ha Hoa, Phu Ninh, 
Song Thao, Thanh Ba, Tam Nong 
and Thanh Thuy districts 
13 Thai 
Nguyen Vo Nhai anh Dinh Hoa districts Dai Tu, Pho Yen, Phu Luong, Phu 
Binh and Dong Hy districts 
14 Yen Bai Luc Yen, Mu Cang Chai and Tram 
Tau districts Tran Yen, Van Chan, Van Yen 
and Yen Binh districts and Nghia 
Lo town 
15 Quang Ninh Ba Che and Binh Lieu districts, Co 
To island district, islands and 
offshore islands under provincial authority Van Don district 
16 Hal Phong Bach Long Vy and Cat Hal island 
districts  
17 Ha Nam  Ly Nhan and Thanh Liem districts  
18 Nam Dinh  Giao Thuy, Xuan Truong, Hai 
Hau and Nghia Hung districts 
19 Thai Binh  Thai Thuy and Tien Hai districts 
20 Ninh Binh  Nho Quan, Gia Vien, Kim Son, 
Tam Diep and Yen Mo districts 
21 Thanh Hoa Muong Lat, Quan Hoa, Ba Thuoc, 
Lang Chanh, Thuong Xuan, Cam 
Thuy, Ngoc Lac, Nhu Thanh and 
Nhu Xuan districts Thach Thanh and Nong Cong 
districts 
22 Nghe An Ky Son, Tuong Duong, Con 
Cuong, Que Phong, Quy Hop, 
Quy Chau and Anh Son districts Tan Ky, Nghia Dan and Thanh 
Chuong districts 
23 Ha Tinh Huong Khe, Huong Son and Vu Duc Tho, Ky Anh, Nghi Xuan, 
                                               
22 Related to Programme IV, V, VI and IX of this Notification.  G/SCM/N/155/VNM 
 
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  Quang districts Thach Ha, Cam Xuyen and Can 
Loc districts 
24 Quang Binh Tuyen Hoa, Minh Hoa and Bo 
Trach districts Other districts 
25 Quang Tri Huong Hoa and Dac Krong 
districts Other districts 
26 Thua Thien 
Hue A Luoi and Nam Dong districts Phong Dien, Quang Dien, Huong 
Tra, Phu Loc and Phu Vang districts 
27 Da Nang Hoang Sa island district  
28 Quang Nam  Dong Giang, Tay Giang, Nam 
Giang, Phuoc Son, Bac Tra My, 
Nam Tra My, Hiep Duc, Tien Phuoc and Nui Thanh districts 
and Cu Lao Cham island Dai Loc and Duy Xuyen districts 
29 Quang Ngai Ba To, Tra Bong, Son Tay, Son 
Ha, Minh Long, Binh Son and Tay 
Tra districts and Ly Son island district Nghia Hanh and Son Tinh 
districts 
30 Binh Dinh An Lao, Vinh Thanh, Van Canh, 
Phu Cat and Tay Son districts Hoai An and Phu My districts 
31 Phu Yen Song Hinh, Dong Xuan, Son Hoa 
and Phu Hoa districts Song Cau, Tuy Hoa and Tuy An 
districts 
32 Khanh Hoa Khanh Vinh and Khanh Son 
districts, Truong Sa island district and islands under provincial 
management Van Ninh, Dien Khanh and Ninh 
Hoa districts and Cam Ranh town
 
33 Ninh Thuan All districts  
34 Binh Thuan Phu Quy island district Bac Binh, Tuy Phong, Duc Linh, 
Tanh Linh, Ham Thuan Bac and Ham Thuan Nam districts 
35 Dak Lak All districts  36 Gia Lai All districts and towns  37 Kon Tum All districts and towns  38 Dak Nong All districts  39 Lam Dong All districts Bao Loc town 
40 Ba Ria - 
Vung Tau Con Dao island district Tan Thanh district 
41 Tay Ninh Tan Bien, Tan Chau, Chau Thanh 
and Ben Cau districts Other districts 
42 Binh Phuoc Loc Ninh, Bu Dang and Bu Dop 
districts Dong Phu, Binh Long, Phuoc 
Long and Chon Thanh districts 
43 Long An  Duc Hue, Moc Hoa, Tan Thanh, 
Duc Hoa, Vinh Hung and Tan 
Hung districts 
44 Tien Giang Tan Phuoc district Go Cong Dong and Go Cong Tay 
districts 
45 Ben Tre Thanh Phu, Ba Chi and Binh Dai 
districts Other districts 
46 Tra Vinh Chau Thanh and Tra Cu districts Cau Ngang, Cau Ke and Tieu Can 
districts 
47 Dong Thap Hong Ngu, Tan Hong, Tam Nong 
and Thap Muoi districts Other districts 
48 Vinh Long  Tra On district 
49 Soc Trang All districts Soc Trang town 
50 Hau Giang All districts Vi Thanh town 
51 An Giang An Phu, Tn Ton, Thoai Son, Tan 
Chau and Tinh Bien districts Other districts 
52 Bac Lieu All districts Bac Lieu town 
53 Ca Mau All districts Ca Mau city 
54 Kien Giang All districts, islands and offshore Ha Tien and Rach Gia towns G/SCM/N/155/VNM 
 
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  islands under provincial 
management 
 Other 
localities Hi-tech parks and economic 
zones entitled to preferences under establishment decisions of 
the Prime Minister Industrial parks established 
under decisions of the Prime 
Minister 
  
__________