You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

April 2, 2018

Vietnam’s Third High-Tech Park Offers Incentives to Investors

Subscribe to Updates
Tilleke & Gibbins

With technology playing an increasingly crucial role in modern life, many countries are turning to the high-tech park model to promote science and technology and attract domestic and overseas investment. High-tech parks are strategically planned hubs connecting research and development activities with high-tech manufacturing and information-based services like software development, and often provide additional amenities like training centers and housing. These parks typically offer many incentives to companies to attract investment projects.

Vietnam established its first high-tech park, Hoa Lac Hi-Tech Park, in Hanoi in 1998, followed by Saigon Hi-Tech Park in Ho Chi Minh City in 2002. To push the development of science and technology in the Central region, a third high-tech park was established in Da Nang in 2010. Earlier this year, the Government of Vietnam issued Decree No. 04/2018/ND-CP on incentive regulations and policies for Da Nang Hi-Tech Park, which took effect on February 20, 2018. The new decree provides the following incentives, among others:

  • Incentives on corporate income tax (CIT): Companies operating new projects will be exempt from CIT for the first four years, then will enjoy a 50% reduction of the payable tax for the next nine years. A CIT rate of 10% will be applicable for 15 years (the normal CIT rate for outside enterprises is 20%); large projects valued at more than VND 3 trillion (USD 133 million) will enjoy such 10% CIT rate for 30 years.
  • Incentives on import duty: An exemption from import duty will be applied for the first five years for raw materials and accessories that cannot be domestically produced.
  • Incentives on land rental: Many high-tech projects are eligible for free land rental for the entire term of the investment project, and will only be required to pay construction costs, utilities, and other disbursements. For other projects, such as those related to training and logistics, the land rental exemption will be applied for an initial infrastructure construction period of up to three years. After such time, the projects may continue enjoying land-rent exemption for the next 15 or 19 years. In addition, Danang Hi-Tech Park will offer certain special projects an exemption from or a 50% reduction of the infrastructure use fee for the first two years of operation.
  • Other incentives: Companies with projects in the park will be given assistance in immigration procedures, housing for foreign expats, connecting with high-quality labor resources from top universities in Vietnam, and loan funding from local banks. The management board also provides a transparent one-stop administrative procedure to the projects located in the park.

Currently, there are 10 projects operating in Da Nang Hi-Tech Park, three of which are Japanese wholly invested projects and seven of which are projects of domestic investors. The new decree is expected to attract both domestic and overseas investors in high-tech industries, aiming to improve the economic development in Central Vietnam as well as to promote the efficiency and competiveness of high-tech goods and services in Vietnam.

Related Professionals

Practices

Corporate/M&A

Real Estate

Location

RELATED INSIGHTS​ 

August 22, 2025
On August 12, 2025, Vietnam’s Ministry of Agriculture and Environment submitted a draft law amending several provisions of the Land Law 2024 (“Draft Amended Land Law” or “Draft”) for government consultation and public comment. The Draft primarily aims to address three controversial issues in Vietnam’s land regime concerning (i) land pricing, (ii) land clearance, and (iii) the allocation of land outside auctions, following policy set out by Resolution 18-NQ/TW and the newly adopted Resolution 69-NQ/TW on land governance modernization. Land pricing is potentially one of the most important areas among the proposed reforms. The Draft, however, has notably not addressed a major concern recently raised by the public: When a project has been allocated or leased land, but the relevant authority has not yet issued the land-price decision, a “supplemental charge” continues to accrue for the entire waiting period. Under current rules, this charge is calculated at 5.4% per year on the ultimately determined land-use fee or land rent, materially shifting project economics and pricing risks to developers or end-buyers. Core Reforms on Land Pricing The Draft Amended Land Law sets out a number of reforms on land pricing, including the following: Land price tables: The Draft maintains provincial land price tables but clarifies the scope of application: They are used to determine land-related financial obligations of land users and compensation when the state recovers land; the government will detail the adjustment coefficient regime, ratios for land-use fee calculation by land type/user/form, and deductible infrastructure costs. Provincial people’s committees will continue to issue land price tables every five years, effective from January 1 of the first year in the cycle, with authority to supplement within the cycle as necessary. In provinces with cadastral maps and digital land price databases, the tables may be established down to the land-parcel level,
Read More
August 19, 2025
On August 6, 2025, Myanmar’s National Defence and Security Council (NDSC) issued Order No. 20/2025, announcing a change in the composition of the country’s Foreign Exchange Supervisory Committee (FESC). The prime minister has been appointed committee chair of the FESC, and five other individuals were appointed to the committee. The order took immediate effect. Originally established in April 2022, the FESC is responsible for approving foreign currency conversion, granting exemptions to foreign exchange restrictions, and permitting overseas transfers of foreign currency. The FESC supervises the flow of foreign currencies for domestic and foreign investment, manufacturing, exports and imports, and service businesses (including education- and health-related initiatives). The FESC is specifically responsible for considering and approving the use of foreign currency for the following: Importing machinery, vehicles, equipment, and raw materials essential for foreign investment and manufacturing projects; Importing fuel, medicine, cooking oil, fertilizer, insecticide, and construction materials not readily available on the domestic market; Covering Myanmar citizens’ needs abroad, such as medical treatment, education, or religious activities; Facilitating imports of general goods, loan repayments, interest payments to foreign lenders, service payments, and profit repatriation from investments; and Importing luxury products, including brand-name goods, jewelry, sports cars, and watches. The FESC is empowered to carry out further duties related to foreign exchange management as assigned by the NDSC Importers, exporters, investors, and business owners are encouraged to consult the most current FESC guidelines and approval lists before conducting transactions in Myanmar. For more details on these FESC composition developments, or on any aspect of financial regulations in Myanmar, please contact Tilleke & Gibbins at [email protected].
Read More
August 1, 2025
Tilleke & Gibbins has contributed the Vietnam chapter to Corporate Governance 2025, part of the International Comparative Legal Guides (ICLG) series published by Global Legal Group. This respected guide offers comprehensive, jurisdiction-specific overviews of corporate governance laws and practices around the world. Each jurisdictional chapter follows a clear Q&A format, providing practical insights into critical issues such as: Sources of corporate governance regulation Shareholders’ rights, powers, and responsibilities Structure and duties of management bodies Stakeholder involvement in governance Transparency and reporting requirements ESG and sustainability-related obligations Cybersecurity and technology-related disclosures The Vietnam chapter was authored by Tram Ngoc Bich Nguyen, Truc Thi Thanh Tran, Dung Thi Phuong Le, and Quang Minh Vu, members of Tilleke & Gibbins’ corporate and commercial team in Ho Chi Minh City. The authors provide detailed analysis of Vietnam’s corporate governance framework, including recent developments such as the 2025 amendments to the Law on Enterprises requiring disclosure of ultimate beneficial ownership and the increasing emphasis on sustainable business practices and responsible corporate conduct. The chapter also discusses practical considerations for foreign investors in Vietnam, such as overlapping signing authorities between key company officers, enforcement of shareholders’ agreements, and disclosure obligations related to ownership and management roles. The complete Vietnam chapter is available as a PDF below. The Vietnam chapter—and the full Corporate Governance 2025 guide—are also freely available on the ICLG website.
Read More
July 25, 2025
On June 17, 2025, the National Assembly of Vietnam adopted Law No. 76/2025/QH15 (Amended LOE) amending and supplementing the 2020 Law on Enterprises, which aims to reshape the legal framework to enhance transparency and alignment with international standards. The Amended LOE took effect from July 1, 2025. Below are key notes on the Amended LOE. Recognition of Beneficial Owners The beneficial owner (BO) concept was previously addressed under Vietnam’s anti-money laundering framework. However, the formal recognition of a BO in the Amended LOE marks a pivotal advancement in embedding ownership transparency into corporate governance, in line with the G7 Financial Action Task Force’s standards on anti-money laundering and counter-terrorism financing. Under the Amended LOE and Decree No. 168/2025/ND-CP of the government dated June 30, 2025, on enterprise registration (Decree 168), a BO is identified through either equity ownership or control rights. Equity ownership: Individuals holding 25% or more of a company’s charter capital or voting shares, either directly or indirectly, qualify as BOs. Indirect ownership is further defined as ownership of at least 25% of charter capital or voting shares through an intermediary organization. Control rights: Individuals with the authority to make or influence major decisions are considered BOs. The actual control over a company includes the power (i) to appoint or remove most or all members of the board of directors or the members’ council or the general director of a company; (ii) to amend the charter; or (iii) to decide other key matters specified in the company’s charter. Notably, individuals representing state ownership in state-owned enterprises are excluded from the scope of the BO concept. Companies are responsible for collecting, updating, and retaining information about BOs and cooperating with authorities when requested to identify BOs, among other obligations. Additionally, any companies registered before July 1, 2025, must
Read More