26 February, 2019
Last week, I wrote about startups in Vietnam (see here). This week, a subsection of startups, specifically science and technology firms, deserves a bit of attention. For a more detailed report of the Decree outlining incentives and requirements for science and technology firms in Vietnam, you can look to the article from Vietnam Insider here.
The decree, one of the first to come out of the government in this year, sets out requirements and benefits for science and technology firms. A science and technology firm is one that meets several requirements. Mainly with an output, or work that results in science and technology patents, copyrights, or other technological protections as provided by various governmental agencies.
Once a firm is certified as a science and technology firm, then that company may be privileged to receive benefits in taxes, up to four years at fifty percent rates, land ownership benefits, and improved credit access. Again, for more details about the decree itself, please feel free to see the link above.
As far as impact, this is good, sign that the Vietnamese government is moving in the direction of welcome and subsidy for certain high tech companies. While startups still face a difficult road, at least the government is opening the way for science and technology firms. Unfortunately, it remains difficult to be certified as a science and technology firm and to date there are only a few hundred firms thus certified.
For further information, please contact:
Dang The Duc, Partner, Indochine Counsel
duc.dang@indochinecounsel.com
