In the context of the Fourth Industrial Revolution and the global digital transformation trend, innovative startups and high technology have become two key sectors in Vietnam’s economic development strategy. With the objectives of attracting investment, strengthening domestic capacity, and enhancing the quality of growth, the State has established a number of special incentive policies targeting high-tech startup enterprises. This article analyzes the key highlights of Vietnam’s preferential investment policies—particularly in relation to tax incentives, investment conditions, and preferential timeframes—thereby illustrating how Vietnam is creating a “lever” to foster innovation and high technology development.
The Role of Innovative Startups and High Technology in the Economic Development Strategy
Innovative startups, particularly those in the high-tech sector, play a crucial role in transforming business models, leveraging intellectual property assets, and generating sustainable added value. These startups are often highly adaptable to market changes and capable of rapidly applying emerging technologies—such as Artificial Intelligence (AI), Big Data, and the Internet of Things (IoT)—thereby creating new value chains and expanding technology export markets. At the macro level, the development of innovative startups enables Vietnam to gradually reduce its dependence on natural resources and low-cost labor, while progressively building a comprehensive digital economy.
In the economic development strategy for the 2021–2030 period, Vietnam has identified innovative startups and high technology as two key drivers for shifting the growth model from extensive to intensive, thereby enhancing productivity and national competitiveness. This orientation is clearly reflected in legal documents such as the Law on Support for Small and Medium-Sized Enterprises 2017 (Articles 18 and 19), the High Technology Law 2008, and most recently Resolution No. 98/2023/QH15 on piloting a special mechanism for the development of Ho Chi Minh City—where innovative startups and high technology are regarded as a “dual engine” driving the knowledge-based economy.
Outstanding Investment Policies in Vietnam Pertaining to Innovative Startups and High-Tech Enterprises
With an open-door policy for investors, Vietnam’s investment legislation has introduced a number of preferential measures, which are considered a highlight in the country’s investment policy for startups in the innovative and high-tech sectors, such as:
- Tax Incentives: One of the most prominent highlights of Vietnam’s investment policy is the provision of tax incentives for innovative startups and high-tech enterprises.
– Pursuant to Resolution No. 198/2025/QH15, corporate income tax is exempted for the first two years and reduced by 50% for the following four years on income derived from innovative startup activities.
– Under the Corporate Income Tax Law 2025, high-tech enterprises are also subject to a preferential corporate income tax rate of 10% for 15 years, with a maximum tax exemption of 4 years and a 50% reduction for up to the following 9 years.
– Personal income tax is exempted for experts and technology engineers working at high-tech enterprises for the first two years, and is reduced by 50% for the following four years.
- Land, Premises, and Infrastructure Incentives: The Government has also implemented various incentives regarding land and infrastructure for innovative startups and high-tech enterprises.
– Pursuant to Resolution No. 198/2025/QH15, innovative startup enterprises are entitled to a minimum 30% reduction in land rental fees during the first five years in industrial parks, technology incubators, and innovation clusters.
– Local authorities are permitted to establish dedicated land funds for high-tech enterprises and enterprises applying digital technologies.
– Exemption from or reduction of initial technical infrastructure usage fees is provided for innovative projects, particularly in the fields of artificial intelligence, software, and microelectronics.
- Investment Procedure Incentives: Another breakthrough in investment policy is the reform of administrative procedures for investors.
– Innovative startups are entitled to simplified investment registration procedures and exemptions from certain sub-licenses during the product trial phase.
– Entitled to priority access to innovation funds, technology investment funds, and eligible for a co-investment mechanism with private investors involving State participation.
Overall, Vietnam’s investment policy is progressively positioning innovative startups and high-tech enterprises at the core of its long-term development strategy. The continuous introduction of special mechanisms, tax incentives, land incentives, financial support, and administrative procedure reforms has been creating a favorable environment for the strong growth of technology startups.
With a sound strategic orientation and increasingly concrete investment policies, innovative startups and high-tech enterprises are emerging as a highlight in Vietnam’s economic development. These enterprises not only drive the transformation of the growth model but also enable Vietnam to keep pace with the Fourth Industrial Revolution, enhance national competitiveness, and move towards the goal of becoming a high-income country by 2045.
As an experienced consulting firm in the fields of investment and corporate law, Siglaw Law Firm provides comprehensive support services for investors and high-tech startups in Vietnam, including:
- Advising on the selection of investment models and structures in accordance with current preferential policie;
- Preparing and completing legal dossiers, investment registration procedures, certificates of high-tech enterprises, and sub-licenses;
- Assisting in the application for tax and land incentives, access to innovation funds, and government support programs;
- Providing ongoing legal support throughout the project implementation process to ensure compliance with applicable laws.
We are always ready to assist our valued clients!
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