Vietnam – New Business Activities Entitled To Investment Incentives (With Specific Focus On SMEs, Start-ups And Incubators).

Draft Decree amending certain provisions of Decree No. 118/2015/ND-CP implementing the Law on Investment (focusing on SMEs, start-ups and incubators)

 

The Government recently issued a Draft Decree (Draft Decree) amending certain provisions of Decree No. 118/2015/ND-CP implementing the Law on Investment which aims to encourage the business environment of start-ups and small and medium-sized enterprises (SMEs) by proposing to add the following business activities to the list of industries and trades entitled to receive investment incentives:

 

(i)  Business investment in products distribution chain of SMEs;

 

(ii)  Business investment in establishment of SMEs incubators;

 

(iii)  Business investment in technical facilities supporting SMEs; and

 

(iv)  Business investment in co-working spaces for SMEs and start-ups.

 

In accordance with the relevant legislation, applicable investment incentives shall comprise

 

(a) corporate income tax incentives,

 

(b) import duty incentives and

 

(c) exemption and reduction of land rent.