Tech Projects Over $260 Million May Qualify for Extended Tax Exemptions and Reductions

Businesses investing in concentrated digital technology zones are entitled to exclusive benefits, including corporate income tax reductions and streamlined customs procedures.

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On December 5th, the Information Technology Industry Department (Ministry of Science and Technology), the Foreign Investment Agency (Ministry of Finance), Quang Trung Software Park (QTSC), and the Ho Chi Minh City Digital Transformation Consulting and Support Center (DXCenter) jointly hosted a seminar titled “Promoting Investment in Concentrated Digital Technology Zones” in Ho Chi Minh City.

Mr. Nguyen Khac Lich, Director of the Information Technology Industry Department, stated that since 2006, when the concentrated information technology park model was legalized, Vietnam laid the foundation for today’s concentrated digital technology zones.

To date, Vietnam has established eight concentrated digital technology zones in Hanoi, Ho Chi Minh City, Da Nang, and Can Tho. Over 630 digital technology enterprises operate within these zones, employing 42,450 high-quality workers, with land use efficiency reaching approximately USD 10 million per hectare annually.

According to Director Nguyen Khac Lich, developing concentrated digital technology zones goes beyond real estate projects; it aims to create a comprehensive ecosystem.

Within this ecosystem, businesses can access shared digital infrastructure (cloud, data centers, chip testing labs, supercomputers for AI training) at the lowest cost, or even free of charge.

Delegates attending the seminar

At the seminar, representatives from the Ministry of Science and Technology announced investment incentives for eligible businesses in concentrated digital technology zones, including a four-year corporate income tax exemption and a 50% reduction in taxable income for the subsequent nine years.

For projects exceeding VND 6,000 billion, the Prime Minister will decide on extending the tax exemption and reduction period, up to a maximum of 1.5 times the initial period.

Additionally, businesses will be exempt from land rental fees and permitted to import used technology lines, machinery, and equipment for research and digital technology training. Workforce incentives include exemptions from work permits and personal income tax for five years.

The Ministry will continue collaborating with local authorities to refine mechanisms, models, and ecosystem connectivity for the sustainable and effective development of concentrated digital technology zones.

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