VIETNAM PRIORITIZES INVESTMENT IN GREEN TECHNOLOGY AND HIGH TECHNOLOGY

VIETNAM PRIORITIZES INVESTMENT IN GREEN TECHNOLOGY AND HIGH TECHNOLOGY

In the past few years, FDI flows have been putting more money into projects that promote sustainable development. Notably, Lego Group of Denmark has recently put money into building a factory in Binh Duong province. This project is built in a way that is good for the environment and ecosystems, thanks to the use of renewable energy, solar energy, and emissions that meet international standards. Vietnam has certain advantages such as:

Vietnam is regarded as Southeast Asia’s new energy center due to its large solar power capacity. Furthermore, the Vietnamese government has committed to achieving net zero greenhouse gas emissions by 2050.

Vietnam’s policy of attracting high-quality foreign direct investment capital and prioritizing industry to green the economy aids in the country’s competitiveness and long-term development.

Besides green technology, high technology is also an area attracting FDI. Apple, Samsung, LG, Foxcom, and other high-tech companies, as was shown in the news recently, have chosen Vietnam as their production base. The Vietnamese government has special incentives for businesses in this field, specifically:

?Tax policy: Accordingly, enterprises’ income from implementing new investment projects in high-tech parks; enterprises’ income from the implementation of investment projects on construction and business of high-tech incubators, and high-tech business incubation are subject to the tax rate of 10% for 15 years, tax exemption for four years, and a reduction of 50 % of corporate income tax payable in the next nine years.

?In addition, incentives on land and non-agricultural land use tax of investment projects in hi-tech zones comply with current regulations of the law on investment, land law, and tax law.

?According to the US website Fiber2Fashion, the European Union (EU) will increase investment in Vietnam in 2022, with a focus on high-tech industries as well as “green” and sustainable business areas.

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Foreign Investment Agency Vietnam