Key takeaways

• Two types of support granted by the Investment Support Fund
• Key principles of the support policy
• Annual support for actual costs
• Support for initial investment costs
• Other notable issues

In more detail

1. Two types of support granted by the Investment Support Fund

The Investment Support Fund offers two types of support: annual support for actual costs and support for initial investment costs. These will be provided as cash grants.

2. Key principles of the support policy

• Cash grant levels depend on requested amounts, the approval decision, the fund's financial capacity and strategic priorities for attracting investment.
• The maximum support period is five years per enterprise or project, unless extended by the prime minister.
• Enterprises can choose only one type of support (annual actual cost or initial investment cost).
• If enterprises meet the conditions for receiving various support items of annual actual cost, they can receive all applicable support items.
• If enterprises are eligible for multiple types of support under different funds or different forms of support for the same cost, enterprises must choose one, unless otherwise stated by the government regulations.
• Cash grants from the Investment Support Fund are not subject to corporate income tax.

3. Enterprises eligible for annual support for actual costs

The following enterprises are eligible:

1. High-tech enterprises
2. Enterprises with investment projects in the field of high-tech product manufacturing
3. Enterprises with high-tech application projects
4. Enterprises with investment projects of R&D centers

4. Conditions for receiving annual support for actual costs

The following conditions must be met to receive support:

1. Obtaining the relevant business/operational license certifying the status of a high-tech enterprise, manufacturer of high-tech products, high-tech application projects or R&D center
2. Meeting the threshold of investment capital or revenue and disbursement of investment capital
3. Having no tax debts or state budget debts
4. Having a minimum number of Vietnamese engineers and managers employed and a minimum number of high-quality engineers trained by enterprises (applicable in certain circumstances)

5. Costs eligible for annual support and support level

1. Costs of human resource training and development: Up to 50% of costs incurred and spent on the following:
   • Training costs, including long-term or short-term training conducted domestically or abroad
   • Training support costs
   • Other costs of HR training and development
   • Salaries for Vietnamese engineers and managers
   • Costs of implementing training, research and business programs for Vietnam at universities, innovation centers and enterprises
2. Costs of R&D activities: Up to 30% of R&D costs spent within the fiscal year.
3. Costs of investment in fixed asset creation: Up to 10% of the additional historical cost of fixed assets increased within the fiscal year but not exceeding 0.5% of the total investment capital. These additional fixed assets must satisfy conditions of minimum period of use, purpose of use and nontransferable period.
4. Costs for manufacturing high-tech products: From 0.5% to 3% of the value-added production of high-tech products.
5. Costs for social infrastructure projects: Up to 25% of the costs incurred and spent on investment in construction of social infrastructure served for eligible enterprises' employees, including social housing for workers to rent, schools, kindergartens, medical facilities, cultural works and sports facilities.
6. Other circumstances prescribed by the government

6. Support for initial investment costs

• This type of support is only applicable to enterprises with investment projects of R&D centers in the field of semiconductor industry and artificial intelligence (AI).
• R&D centers are established as science and technology organizations engaged in R&D activities for creating high technology under the list of prioritized high technology or the list of prioritized high-tech products according to the prime minister’s decision and meet the threshold of investment capital. R&D centers must have a positive impact on the innovation ecosystem and the development of new technologies and breakthrough products for Vietnam.
• Qualified enterprises will be entitled to a maximum of 50% of the initial investment costs incurred for their investment project.

7. Other notable issues

• Enterprises must return the support received under the Investment Support Fund and are subject to a 10% penalty and interest if they do not qualify for eligible conditions and conditions for support costs of fixed-asset investment, use illegal documents and provide incorrect information leading to the higher amount of entitled support or if the cost is covered by other funds or other support schemes.
• This decree took effect from 31 December 2024 and applies from fiscal year 2024. The deadline for submitting the application dossiers is before 10 July of the year following the requested fiscal year. This means that eligible enterprises must submit application dossiers before 10 July 2025 for the support of fiscal year 2024.