On February 1, 2024, Vietnam Government introduced Decree No. 10/2024/ND-CP to Attract More High-Tech Investments.
This decree covers the establishment and expansion procedures of high-tech zones, investment incentives and support policies for projects within these zones, and operational activities within them.
Investors venturing into infrastructure projects within high-tech parks will enjoy a range of benefits, including exemptions from land lease fees and reimbursement for land clearance expenses.
Additionally, preferential interest rates on loans and access to capital within established legal frameworks will be made available to support these endeavors.
Decree 10/2024 also demands local authorities to develop suitable living areas and social infrastructure surrounding high-tech parks to accommodate workers. These facilities can be constructed through public-private partnerships (PPP) or private funding, enhancing the overall appeal of these areas for prospective investors. Manufacturing and export businesses operating within these parks will also benefit from export tax exemptions or reductions, akin to those enjoyed in non-tariff zones.
Why invest in Vietnam?
Vietnam stands out as a compelling investment destination among emerging markets. The country’s appeal is consolidated by several factors, including (but not limited to):
- Industrial zones: Well-developed Economic Zones, Industrial Parks, Business Districts, and Residential Centers provide investors with a conducive ecosystem for establishing and expanding their operations, equipped with modern infrastructure and amenities.
- Strategic location: Situated in Southeast Asia and along key shipping routes, Vietnam serves as a strategic hub for manufacturing and trade, besides offering unparalleled access to lucrative markets.
- Growing economy: With a robust GDP growth trajectory consistently surpassing global and regional peers, Vietnam’s dynamic economy presents a fertile ground for long-term investment, backed by resilient economic fundamentals.
- Stable government: Underpinned by a stable government with a clear economic vision, Vietnam offers a conducive investment environment characterized by fair policy control, minimal investment barriers, and robust incentive schemes, ensuring investor confidence and stability.
- Ease of doing business: Continuously improving ease of doing business rankings underscore Vietnam’s commitment to facilitating foreign investment, streamlining bureaucratic processes, and enhancing transparency for investors seeking hassle-free business operations.
- Strong FDI environment: As discussed in the above sections, Vietnam’s robust FDI environment further highlights investor confidence and commitment to long-term growth prospects.
- Growing consumer spending: With a population exceeding 95 million and a burgeoning middle class driving consumer spending, Vietnam offers a fertile market ripe with opportunities across diverse sectors, particularly in the rapidly expanding services segment contributing over 40 percent to GDP.
- Network of FTAs: As a signatory to over 18 Free Trade Agreements (FTAs), Vietnam enjoys preferential trade advantages across the Asia-Pacific region, ASEAN, Europe, and beyond, providing investors with greater access to global markets and supply chains. Moreover, the country’s membership in the WTO and adherence to major international Intellectual Property Protection conventions underscore its commitment to aligning with global legal frameworks, ensuring investor protection and intellectual property rights enforcement.
Source: Vietnam Breifing published by 14, March 2024. Retrieved by 10, April 2024