Vietnam is witnessing the strong rise of the green construction materials industry, an area that is attractive to foreign investors because of its long-term growth potential and the government's strong commitment to sustainable development. In this context, the flow of foreign direct investment (FDI) into the field of environmentally friendly construction materials production is increasing rapidly, raising a big question: How to invest effectively, legally and optimize costs when participating in this field in Vietnam?
Today, "sustainable development" is no longer a symbolic concept but has become a mandatory standard in the construction industry. Vietnam, with its rapid urbanization rate, need for large infrastructure construction and ambition to achieve the net zero emissions target by 2050, is creating a promising market for businesses producing environmentally friendly construction materials.
Materials such as unburnt bricks, ultra-light concrete, bio-based paint, energy-saving glass, recycled materials... are popular because of their resource-saving features, emission reduction and ability to be reused. In addition, the Vietnamese Government has issued many preferential policies for investment in this field, especially in industrial parks, high-tech parks, and key economic regions.
According to the Investment Law 2020 and guiding documents, the production of environmentally friendly materials is on the list of industries eligible for investment incentives. Specifically:
Corporate income tax exemption for the first 4 years, 50% reduction for the next 9 years (if eligible).
Exemption from import tax on machinery, equipment, and raw materials that cannot be produced domestically.
Support for land use, exemption or reduction of land rent depending on the specific area and project.
To invest in the production of green building materials in Vietnam legally and effectively, investors need to carefully prepare both legal documents and business strategies. Failure to understand the process can lead to delays, additional costs or license denial.
The first step is to apply for an Investment Registration Certificate at the Department of Planning and Investment where the project is expected to be located. The dossier includes investment project proposal, documents proving financial capacity, land lease contract (if any), commitments on environmental protection...
If the project is in a conditional field or requires environmental impact assessment (such as producing new materials, using unpopular technology, etc.), investors need to carry out additional approval procedures at specialized agencies.
After being granted an Investment Certificate, the investor proceeds to establish a company in Vietnam according to the Enterprise Law. This is a necessary step to have legal status to implement the project.
Depending on the project scale, investors need to apply for construction permits, basic design approval, fire protection appraisal, and especially environmental permits. Failure to properly follow this procedure may result in the project being suspended.
One of the factors that is often overlooked but determines the success of FDI projects in the field of construction materials in Vietnam is legal advice. The Vietnamese market has specific laws, business culture and administrative mechanisms that require investors to be properly prepared and accompanied by a professional team.
Consulting on optimal investment structure, ensuring control and financial benefits of investors.
Drafting investment documents and representing to work with authorities.
Check the legality of the contract, premises, machinery and technology used.
Support in applying for and adjusting licenses throughout the project life cycle.
Consulting on strategies for handling legal risks, disputes, and administrative complaints, if any.
With many years of experience in foreign investment consulting, DEDICA is proud to be a legal consulting unit for many investors in many different fields. The team of lawyers at DEDICA not only understands Vietnamese law but also understands the specifics of Western, Korean and Chinese business culture, helping FDI customers save time, costs and avoid unnecessary risks.
FDI investment in the production of environmentally friendly construction materials in Vietnam is a strategic choice in the global sustainable development trend. However, to achieve success, investors need not only capital and technology but also legal knowledge and a methodical implementation roadmap. Let DEDICA accompany you on this journey, from the first steps until the project operates stably and sustainably.
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