Distinguishing industrial zones, export processing zones, high-tech zones, and economic zones

Characteristics of Export Processing Zones:

• Purpose of Establishment: The export processing zone is primarily established to attract investment from foreign enterprises
• Geographical Boundaries: The export processing zone is separated from the external area in accordance with the regulations applicable to non-tariff zones as stipulated in the laws on export and import taxes.
• Composition of Enterprises in Export Processing Zones: This includes enterprises located within the export processing zone, referred to as export enterprises.
• Incentives: Export enterprises are exempt from import and export duties when importing goods to create fixed assets, importing raw materials for production, or exporting finished products abroad, as well as being exempt from value-added tax.
• industries and goods for export include: rice, textiles and garments, leather shoes, ….

• Purpose of Establishment: To attract investment from both domestic and foreign enterprises
• Geographical Boundaries: It is a defined geographical boundary but not clearly marked, typically delineated by a system of constructed barriers.
• Composition of Enterprises: This includes all enterprises, both domestic and foreign.
• Production Industries: It encompasses most industries and sectors with a diverse range of goods and services, primarily including: construction materials, machinery, consumer equipment, and logistics services.

Classification: There are two types of economic zones

• Coastal economic zone refers to an economic zone established at and near the coast, established in accordance with the conditions, procedures, and formalities stipulated in this Decree.
• Border gate economic zones are economic zones established in the border areas and adjacent territories of land borders, including international border gates or main border gates, and are established in accordance with the conditions, procedures, and formalities stipulated in this Decree

• Purpose of establishment: Contributing to the development of the country’s research and development capacity in the high-tech sector; creating a favorable environment for investment activities to attract capital, high technology, and high-tech human resources from both domestic and international sources; facilitating the connection between high-tech training and research and development with production and services, promote technology innovation, incubate high-tech enterprises, and commercialize high technologies
• Composition of Enterprises: This includes all enterprises, both domestic and foreign
• Incentives: Capital and the investment budget for the construction of the high-tech zone are prioritized and and the external technical infrastructure components directly serve the operation of the high-tech zone

Organizations, enterprises, and individuals, both domestic and foreign, investing in the high-tech zone are treated equally and provided with the best conditions for development.

The State protects the ownership rights of investors regarding their investment capital, assets, patents, …. Ensures that they are not confiscated, requisitioned through financial measures, nationalization during the implementation of the investment project.

Businesses in the high-tech zone will receive a preferential tax rate of 10% and may be exempted or have their corporate income tax reduced by up to 50%. They will also be exempt from import taxes if they meet three specific criteria outlined in this Decision.

Industry: manufacture and trading high-tech products; researching, developing, and applying advanced technology.