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​ 

April 30, 2026
Thailand’s Long-Term Resident (LTR) Visa regime offers an attractive immigration pathway for qualifying foreign nationals, providing a 10-year renewable permission to stay in Thailand. Following amendments under Board of Investment (BOI) Announcement No. Por. 3/2568 dated February 4, 2025, the regime now more explicitly accommodates property investment as a qualifying vehicle—a development of particular relevance to foreign nationals already considering real estate acquisitions in Thailand. The LTR Visa is available to several categories of applicants, including wealthy global citizens with global assets of at least USD 1 million, and wealthy pensioners aged 50 or older with an annual pension or fixed income of at least USD 40,000. Property as a Qualifying Investment For both categories, property investment is recognized as one of three eligible investment types alongside Thai government bonds (with at least five years remaining to maturity) and direct investments in Thai companies or approved venture capital or private equity vehicles. The minimum qualifying property investment is USD 500,000 for wealthy global citizens and USD 250,000 for wealthy pensioners. Eligible property types include freehold condominiums, buildings, or villas, as well as leasehold properties with a remaining lease term of at least 10 years. Health Coverage Requirement Beyond the investment threshold, applicants must demonstrate adequate health coverage. This requirement can be satisfied through a health insurance policy covering at least USD 50,000 in Thai medical expenses with at least 10 months of remaining coverage, evidence of social security benefits covering Thai medical costs, or a bank deposit of at least USD 100,000 retained for 12 months. Practical Considerations For foreign nationals already considering property acquisitions in prime residential markets—where investment values commonly meet or exceed the USD 500,000 threshold—the visa pathway effectively transforms a real estate purchase into a dual-purpose investment, combining asset ownership with long-term residence rights that
Read More
April 29, 2026
Vietnam’s education sector is entering a new regulatory era. On December 10, 2025, the National Assembly adopted a series of new and amended laws in the field of education, including the 2025 Law on Vocational Education, the 2025 Law on Higher Education, and the amended Law on Education No. 123/2025/QH15 (Amended Law on Education). These laws together took effect on January 1, 2026, marking a significant reform of Vietnam’s legal framework governing the education sector. The legislative package introduces a new lawmaking approach under which foundational and principle-based provisions are codified in the Amended Law on Education, while the Law on Higher Education and the Law on Vocational Education serve as specialized statutes providing supplementary, sector-specific regulatory detail tailored to their respective subsectors. The Amended Law on Education fundamentally restructures how educational institutions are established, governed, and licensed, with direct implications for private investors, foreign-invested entities, and education service providers operating in Vietnam. Below are several highlights of the key changes under the amended law, especially in the private sector, that stakeholders should understand: Change in the National Education System In addition to primary education, lower secondary (junior high school) education is now compulsory in Vietnam. Accordingly, diplomas are no longer awarded upon completion of lower secondary school but only for upper education levels. The national education system is also expanded through the introduction of vocational high school as a new level of vocational education. Such reform creates additional learning pathways that not only enable learners to pursue both further education and participate in the labor market, but also better align education and training with socioeconomic development needs. New Hurdle for Joint Investors: Mandatory Corporate Entity Requirement Where two or more investors jointly establish an education institution, the investors are no longer permitted to directly establish such an institution.
Read More
April 22, 2026
A new decree in Vietnam brings significant implementation clarity to the country’s existing extended producer responsibility (EPR) legal framework. An EPR mechanism was first codified in Vietnam in the 2020 Law on Environmental Protection amid ongoing challenges surrounding the collection and treatment of product and packaging waste. The mechanism was progressively detailed through Decree No. 08/2022/ND‑CP and its successive amendments, but the regulatory framework remained insufficiently developed, notably in terms of support mechanisms for waste collection, recycling, and treatment. The newly launched regulations in Decree No. 110/2026/ND-CP (Decree 110), issued on April 1, 2026, and taking effect on May 25, 2026, stipulate fully and clearly the responsibility of manufacturers and importers to recycle products and packaging and to treat waste. Some key provisions of Decree 110 for manufacturers, importers, and related stakeholders are presented below. Subjects of EPR The Law on Environmental Protection assigns responsibility to manufacturers and importers for product and packaging recycling (under Article 54) or waste collection and treatment (under Article 55), depending on the type of products and packaging they produce or import. Decree 110 elaborates on these EPR provisions by specifying the responsible entities and listing out the types of products and packaging subject to recycling and waste treatment responsibilities. Decree 110 clarifies the responsible entities in special cases, such as when products under the same brand are made by multiple manufacturers, when there is a contract manufacturing or entrusted import relationship, and when the manufacturer or importer is part of a corporate group. Notably, exemptions may be applied in some scenarios, such as for manufacturers and importers of products and packaging exclusively for export, temporary import and re-export, or research and testing purposes, as well as for entities with annual revenue from related products not exceeding VND 30 billion. Recycling Responsibilities Decree 110
Read More
April 15, 2026
On March 31, 2026, Vietnam’s government issued Decree 102/2026/ND-CP (Decree 102), which amends Decree 75/2019/ND-CP on administrative sanctions for competition law violations (Decree 75). Effective from May 20, 2026, the new decree introduces a number of significant changes aimed at strengthening enforcement, revising penalty structures, and broadening the range of remedial measures, primarily for violations related to economic concentration. Revised Penalties for Economic Concentration Violations Decree 102 significantly revises the penalties for violations related to economic concentration. Failure to notify an economic concentration; implementing an economic concentration before clearance Under the new framework, Articles 14 and 15 of Decree 75 have been amended to impose a range of monetary fines, rather than relying solely on percentage‑based penalties as under the previous regime, for violations involving the failure to notify an economic concentration or the implementation of an economic concentration prior to clearance. The fines range from VND 500 million to VND 1 billion for each enterprise participating in a concentration with combined assets, revenues, or purchase value below VND 3,000 billion in the preceding fiscal year, capped at 5% of the violating enterprise’s total turnover in the relevant market. For concentrations meeting or exceeding the VND 3,000 billion threshold across those same metrics, the fines increase to VND 1 billion to VND 2 billion per enterprise, also subject to the 5% cap. These differentiated thresholds allow penalties to better reflect the size of the transaction and its potential competitive impact. Non-compliance with conditional approvals Enterprises that do not implement or only partially implement the conditions specified in a conditional economic concentration approval decision face fines ranging from 1% to 3% of total turnover in the relevant market during the fiscal year preceding the violation. Decree 102 also adds a new remedial measure requiring enterprises to fully implement all conditions
Read More