The Government’s draft decree replacing Decree 94 proposes additional incentives for National Innovation Center (NIC) compared to current regulations.
Hoà Lạc NIC.
Specifically, NIC is proposed to enjoy certain incentives regarding land and taxes. Accordingly, the center is entitled to a 50-year land lease in high-tech parks, with a full waiver of land rent for the entire lease term. The center is exempt from land rent in cases where it uses assets attached to the land for business, leasing, joint ventures, or linkages.
Regarding the Hòa Lạc campus, NIC will benefit from the above-mentioned provisions, including exemption from infrastructure usage fees for the leased area located in the zone subject to infrastructure usage fees (for technical infrastructure works invested by the State) and full waiver of site clearance compensation, resettlement support, and expenses. The state budget covers all site clearance expenses for the center’s investment project.
The center is also exempt from import taxes on goods to create fixed assets and those directly used for scientific research, technology development, technology incubation, business incubation in science and technology, and technological innovation as per the Law on Export and Import Taxes.
Hòa Lạc NIC enjoys a five-year import tax exemption on raw materials, supplies, and components that cannot be produced domestically, starting from the commencement of production. The center is eligible for preferential income tax treatment.
The center is also permitted to receive and utilize grants and donations.
In terms of financial and investment mechanisms, the Ministry of Planning and Investment proposes to prioritize the allocation of public investment and state budget for the center… The state provides annual regular operation funding until 2030, with the support level based on annual performance, triennial reviews, and annual audits, gradually increasing financial autonomy.
The Ministry also suggests establishing a National Innovation Fund operating as a limited liability or joint-stock company. The fund’s charter capital includes contributions from NIC, enterprises, investment funds, organizations, and individuals.
The management and utilization of capital follow market principles and accept the risk of loss. The fund’s charter is approved by the Minister of Planning and Investment. It invests in innovative and entrepreneurial enterprises domestically and internationally, including venture capital; sponsors innovation and entrepreneurial activities of enterprises; and provides scholarships…
NIC is proposed to provide consulting, connection support, exhibitions, conferences, and forums.
Regarding service provision, NIC conducts consulting, connection support, exhibitions, conferences, and forums on innovation and entrepreneurship. It also offers investment connection, training, and research services.
NIC, under the Ministry of Planning and Investment, was established by the Prime Minister (Decision No. 1269/QD-TTg dated October 2, 2019). The center supports and develops an innovative and entrepreneurial ecosystem, contributing to a growth model driven by science and technology advancement.
In October 2023, after nearly three years of construction, the Hòa Lạc NIC commenced operations with a total investment of VND 750 billion, raised from enterprises outside the state budget.
