Is It Really “Worth It” to Invest in Electronic Component Manufacturing in High-Tech Zones in Vietnam?
In recent years, it’s no surprise that major tech corporations have chosen Vietnam as a prime location for electronic component manufacturing. Among the strongest "investment magnets" are the high-tech parks (HTPs) in Ho Chi Minh City, Hanoi, and Da Nang. But what exactly makes these zones so attractive?
A More “Business-Friendly” Environment for Manufacturers
Vietnam continuously improves its investment policies and legal frameworks for foreign investors. Especially in the high-tech sector like electronic component manufacturing, enterprises enjoy a wide range of incentives:
Corporate income tax (CIT) exemption for the first 4 years, 50% tax reduction for the next 9 years, and a preferential CIT rate of 10% for 15 years for high-tech or large-scale projects.
Import tax exemption for machinery, equipment, and raw materials not yet available domestically.
Land incentives, including exemption or reduction of land rent and support in obtaining land use rights within high-tech zones.
Beyond the paperwork, local governments like Ho Chi Minh City and Da Nang are striving to reduce licensing time and even assign dedicated officials to support large-scale investors.
Ready Infrastructure & Skilled Labor
Ho Chi Minh City’s High-Tech Park hosts major corporations like Samsung, Intel, and Nidec, forming a robust industrial support ecosystem. This makes it easier for new investors to find local suppliers, technical services, and skilled labor—critical elements for electronics manufacturing.
Moreover, the favorable location near seaports, international airports, and inter-regional highways helps reduce logistics costs significantly—an essential factor in global supply chains.
What Should Businesses Prepare to Access These Incentives?
Accessing investment incentives depends not only on the business field but also on how well companies comply with legal procedures. To maximize incentives and ensure smooth operations, foreign investors often turn to professional legal consultants like DEDICA Law Firm.
A Case from DEDICA’s Client – When Preparation is Key
Client A, a tech firm based in Singapore, wanted to establish a sensor module factory in HCMC’s High-Tech Park. Initially, they struggled to determine eligible incentives and how to qualify.
DEDICA supported them from the start:
Advising on optimal investment structure to meet tax and land incentives.
Assisting in preparing technology dossiers to prove high-tech eligibility.
Drafting and submitting investment registration documents and working directly with the HTP Management Board to resolve obstacles.
Within just 40 working days, the company received its investment certificate along with a 10% tax rate for 15 years and full import tax exemption on equipment—saving billions of VND from the start.
Key Takeaways to Maximize Benefits
From real cases we’ve handled, DEDICA recommends:
Transparent documentation: Clearly prepare all technological, production, and land-use plans.
Prove “high-tech” factors: Many investors lose incentives because they cannot show sufficient automation, R&D, or innovation.
Work with experienced consultants: Understanding policies and local authority procedures helps avoid delays and costs.
Strategic Moves into High-Tech Zones
High-tech zones in Vietnam are not just manufacturing hubs—they’re launching pads for global expansion. But to fully leverage their benefits, enterprises need thorough and strategic legal planning.
At DEDICA, we not only handle procedures but also act as strategic partners, supporting legal structuring from the investment idea stage—ensuring compliance, optimization, and sustainable growth.
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📩 Contact DEDICA for a free initial consultation with our professional legal team today!
