Garment production line at Hana Kovi Vietnam Co., Ltd., 100% Korean-invested in Bac Giang province (Photo: VNA)
Posted on the official website of the Czech Republic Foreign Ministry on July 31st, the article noted clearly that the Vietnamese National Assembly had adopted the Investment Law (revised) which is expected to go into effect from January 1st, 2021, thus remarkably improving conditions for foreign investors to Vietnam. The main goal of the revised law is to make the business environment in Vietnam more attractive for foreign investors and to attract new investment in high technology.
According to the author, Vietnam is one of the most attractive investment destinations in Asia; however, so far, most of the foreign investment in Vietnam has mainly focused on the areas of cheap labor with low technology process. Therefore, last year, the Vietnamese Government decided to change its strategy to attract foreign investment to support the renovation of industries and high-tech industries.
An important element of this strategy is the change in preferential conditions of investment put forth in the Investment Law. New investment incentives for selected high-tech industries include exemption of corporate income tax, a reduction of State-owned space rent in industrial parks and a range of other incentives.
Under the new Investment Law, investors will receive special treatment if they commit to invest in Vietnam at least USD1.3 billion, and if, within 3 years of receiving investment license, they achieve a turnover of USD434 million or employ at least 3,000 workers.
The Vietnamese Government emphasizes that the majority of incentives and changes in the Investment Law reflect the needs of large multinational companies, which have long sought ways to enter the Vietnamese market. Therefore, the law has been adjusted to suit reality and make Vietnam more attractive to the world's largest economies.
The article emphasized that although it is coping with the negative consequences of the COVID-19 pandemic, Vietnam does not lose its attractiveness to foreign investors and in the first 7 months of 2020, USD18.8 billion of foreign investment poured into Vietnam, only a decrease of about 7% compared to the same period last year./.