INVESTMENT INCENTIVES FOR EXPORT PROCESSING ENTERPRISES

In the context of deep economic integration, Vietnam has implemented various investment incentive policies for export processing enterprises. These investment incentives for export processing enterprises not only demonstrate the government’s commitment to promoting production and export but also facilitate companies in optimizing their operational costs. Thanks to tax policies, customs fee exemptions, and technical support, export processing enterprises increasingly have opportunities to develop robustly and enhance their competitiveness in the international market.

Tax incentives for export processing enterprises

Exemption of import tax on raw materials and components:

Under the Export-Import Tax Law 2016 and Decree 18/2021/ND-CP, export processing enterprises are exempted from import tax on raw materials, components, and semi-finished products imported for export production.

Corporate Income Tax (CIT) incentives:

According to the Corporate Income Tax Law 2008 and Circular 151/2014/TT-BTC, export processing enterprises that meet specific requirements are eligible for preferential corporate income tax (CIT) rates. Qualified export processing enterprises may benefit from a reduced CIT rate or tax exemptions, often exempted from CIT for 02 years at the start of operations and a 50% CIT reduction for the next 04 years, depending on industry, investment scale, and investment location.

Customs and clearance incentives

Export processing enterprises are eligible for expedited customs procedures with streamlined documentation, benefit from dedicated customs areas and do not require import declarations when trading raw materials with other export processing enterprises.

Land lease exemptions and infrastructure support

Export processing enterprises in industrial or export processing zones may receive land lease exemptions or reductions depending on their investment area. Export processing enterprises in especially disadvantaged regions may qualify for up to 15 years of land lease exemption or even full exemption for the entire operational period, based on location and investment size.

Export processing enterprises benefit from access to modern infrastructure—such as transportation, electricity, water, and telecommunications—constructed by the state or industrial zone developers to support smooth production operations.

Access to workforce and workforce training support

Export processing enterprises can access state or industrial zone-sponsored workforce training programs. In certain regions, local authorities also offer free or subsidized training to ensure a skilled labor force that meets export processing enterprises requirements. For employees with short-term contracts, export processing enterprisesmay adopt flexible social insurance contribution policies and work arrangements.

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