Tax Incentives For Entrepreneurs Moving Their Companies To Vietnam (2025)

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At a glance. Vietnam’s standard corporate income tax (CIT) rate is 20%. If your project qualifies, you can access preferential CIT rates (commonly 10% for 15 years or 17% for 10 years), tax holidays (often 4 years exemption + 9 years at 50%), import-duty relief on fixed assets, reduced land rent, and—if you’re truly strategic/large-scale—“special” packages as low as 5% CIT for up to 37 years.

Who qualifies (and why that matters)

Vietnam’s incentive regime is built around what you do, where you do it, and how big/strategic the project is:

Sectors: high-tech, software production, R&D, supporting industries, renewables, and selected “socialized” sectors.
Locations: economic zones, industrial parks, and hi-tech parks (these are treated as highly preferential areas, with separate land-rent breaks and access to the higher CIT incentives). Hanoi’s Hòa Lạc Hi-Tech Park is the flagship option near the city.
Scale/strategic status: Very large, R&D-heavy, or nationally strategic projects can qualify for special investment incentives created by the Law on Investment 2020 and its guiding decrees.

Core corporate tax incentives

1) Preferential CIT rates and tax holidays

Two “standard” packages show up frequently:

10% for 15 years + 4 years CIT exemption + 9 years at 50% (common for software production/high-tech and qualified locations).
17% for 10 years + 2 years exemption + 4 years at 50% (often for projects in “difficult” areas or certain industrial parks).

For software production (not just IT services), Vietnam confirms the above package, but you must meet the “software production” test (e.g., performing defined phases like requirement analysis and design under Circular 13/2020). Setups that are purely outsourcing or “IT services” may not qualify—structure accordingly.

2) “Special investment incentives” (big plays)

If your project is an R&D center, a national innovation node, or a very large/strategic investment, the government can grant ultra-long incentives—CIT 5% for up to 37 years, plus 6 years exemption and 13 years at 50%, with deep land/water rent reductions. These were formalized after the 2020 Law on Investment via subsequent decisions/decrees. These are selective, negotiated, and documentation-heavy—but real.

3) Standard rate outside incentives

If you’re not in a qualifying sector/zone, you’ll pay 20% CIT and can still plan efficiently with transfer pricing, loss carryforwards, and treaty relief.

VAT, customs, and land-rent levers

VAT: Vietnam’s headline VAT is 10%, but a temporary 2-point cut keeps many items at 8% until December 31, 2026. This isn’t an “incentive” you apply for; it’s a broad relief that lowers B2B input costs and B2C pricing headroom while it lasts. Mind the exclusions (e.g., finance, telecoms, real estate).

Import duties: Projects with investment incentives are generally exempt from import duty on fixed assets (machinery, specialized vehicles unattainable locally, etc.). There are also limited windows for raw-material duty exemptions in specific cases (e.g., for certain projects or sectors). Build your procurement plan around these categories to lock in savings at capex stage.

Land rent & water surface rent: In prioritized zones—especially hi-tech parks—you can see multi-year (even multi-decade) land-rent exemptions and reductions. Hòa Lạc Hi-Tech Park and similar zones often advertise land-rent holidays followed by long reduction periods. Factor this into your total cost of ownership vs. central Hanoi leases.

Hanoi angle: Hòa Lạc Hi-Tech Park vs. “downtown HQ”

For Hanoi-based founders, a hybrid model can work well:

R&D/production entity inside Hòa Lạc Hi-Tech Park to maximize CIT, land-rent, and customs incentives.
Commercial HQ in the city (for sales/marketing/admin).

Vietnam recently reinforced incentives for hi-tech parks nationwide, clarifying their treatment as highly preferential geographies under the investment law. If you’re building software products, hardware, or semiconductors—or running a true R&D center—Hòa Lạc merits a hard look.

2025 developments you should know

New CIT Law (June 14, 2025): Vietnam passed an amended CIT Law taking effect October 1, 2025 for the 2025 tax year. The standard rate stays at 20%; guidance refines incentive qualification, expansion projects, and transitions. If you’re designing a new structure now, align your model with the new rules.
Global Minimum Tax (Pillar Two): From Jan 1, 2024, groups with consolidated revenue ≥ €750m face a 15% Qualified Domestic Minimum Top-up Tax (QDMTT). If you’re a scale-up below that threshold, this likely doesn’t touch you. If you’re part of a large multinational, your effective rate will get topped up to 15% regardless of incentives—so your negotiation may shift from tax rates to cash grants, training support, and infrastructure commitments the government is developing to stay competitive.

Treaties and cross-border planning

Vietnam has ~80 double tax agreements (DTAs). These can lower withholding tax on cross-border payments (dividends, interest, royalties) and prevent double taxation of your personally earned income if you become a Vietnam tax resident. You must file for treaty benefits; they’re not automatic. For Canada/US founders, note: Vietnam’s DTA with Canada is in force; a signed DTA with the United States is not yet in force—plan IP and intercompany flows accordingly.

Practical structuring notes for relocating founders

New investment vs. acquisition. Most incentives attach to new investment projects (greenfield or qualified expansions). Buying an existing local company typically doesn’t “inherit” incentives unless specific rules are met and authorities approve the continuation. Bake this into your M&A vs. greenfield decision.
Proving software “production.” If you want the 10%/15-year software package, your scope of work and staffing must reflect production stages defined by Circular 13/2020 (requirements, analysis/design, coding, testing, etc.). Document this from day one (SoWs, Jira, versioning, QA logs).
Location choice is strategy. Hanoi’s Hòa Lạc can materially reduce your all-in cost base via land rent and customs relief. If your team needs downtown proximity, consider a dual-location structure (tech ops in the park; client-facing office in the city).
Capex timing. Align import-duty exemptions with your equipment rollout—customs relief hinges on the project being incentive-eligible and the assets classified as fixed assets for the project. Get your HS codes and project lists pre-cleared to avoid nasty surprises at the port.
Model the VAT headroom (2025-2026). The temporary 8% VAT helps both B2B and B2C pricing. If your go-to-market leans on consumer-facing pricing, the reduction can widen margin or fund promo budgets until Dec 31, 2026. Build a reversion plan for 2027.
If you’re part of a large group. With Pillar Two live in Vietnam, optimize around non-tax levers (grants, training, infrastructure). Vietnam is actively designing these to offset the reduced value of tax holidays for big MNEs.

The bottom line

Vietnam remains one of the most incentive-rich destinations in Asia for founders who build in software production, high-tech, and R&D, or who locate in hi-tech/industrial zones. For many SMEs and growth-stage tech companies, the classic 10%/15-year + 4-and-9 package is achievable with the right scoping and documentation. For outsized, strategic projects, Vietnam can still put 5% for 37 years on the table—but expect rigorous conditions and negotiation. Meanwhile, across the whole economy, the 8% VAT extension buys you two more years of pricing flexibility.

Design your structure around (1) sector fit, (2) location (Hòa Lạc vs. city), (3) eligibility evidence (especially for software), and (4) your group’s Pillar Two status. Do that, and the tax tailwind here can be meaningful—and durable.