Special Tax Incentive Packages for FDI Projects in Industrial Parks in Vietnam
As Vietnam continues to integrate deeply into the global economy, foreign direct investment (FDI) plays an increasingly important role in economic growth. With its geographical advantages, competitive labor costs, and political stability, Vietnam has become an ideal destination for international investors. One of the most attractive factors is the tax incentive policies for FDI projects in industrial parks.
This article analyzes in detail the current tax incentive packages and provides strategies for investors to maximize opportunities when implementing projects in Vietnam.
Tax incentives for FDI projects in industrial parks
FDI enterprises investing in industrial parks can enjoy various tax and financial incentives. These incentives are stipulated in the Corporate Income Tax Law, the Investment Law, and the Land Law, and will be updated according to the new law effective from October 1, 2025.
Corporate Income Tax (CIT) Incentives
Exemption from 2–4 years: Most new investment projects in industrial parks (excluding favorable areas) are exempt from CIT for the first 2 years. Specially encouraged projects may enjoy up to 4 years of exemption.
50% reduction for the next 4–9 years: After the exemption period, enterprises often receive a 50% tax reduction for 4 years. For projects in priority sectors or located in difficult areas, this may be extended up to 9 years.
Preferential tax rates: Certain projects are eligible for a 10% CIT rate for 15 years or 17% for 10 years, significantly lower than the standard 20%. This is a major advantage for high-tech, supporting industries, and renewable energy enterprises.
Import Duty Incentives
FDI projects are exempt from import duties on:
Machinery, equipment, and specialized vehicles to form fixed assets.
Raw materials and supplies not produced domestically.
Goods imported for R&D and technology.
Land Rent and Land Use Incentives
Exemption from land rent for several years, depending on location and project type.
Full exemption for projects in specially encouraged sectors or in particularly difficult socio-economic areas.
Reduction in rent for land used for social purposes, R&D, or shared infrastructure.
Strategies to maximize tax incentives for FDI projects
Not all FDI enterprises automatically enjoy maximum benefits, so investors should adopt clear strategies:
Choose the right location and sector to access better incentives.
Prepare complete legal documentation including investment certificate, enterprise registration, land lease agreement, and evidence of preferential sector/location.
Work with legal and tax experts to ensure compliance, optimize planning, and avoid disputes.
With extensive experience in supporting FDI enterprises, DEDICA Law Firm has helped clients optimize tax planning, ensure compliance, and minimize legal risks.
Contact DEDICA Law Firm for expert legal consultation!
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