On June 17th, 2020, the Law on Investment 2020 was passed by the 14th National Assembly and came into effect from January 1, 2021.  Accordingly, the Law on Investment 2020 has added a number of industries eligible for investment incentives as well as additional investment incentive policies, specifically as follows:

           Firstly, the Investment Law of 2020 adds many sectors with investment incentives.  Specifically, the following sectors with investment incentives are added to the Law on Investment 2014, specified in Article 16:

• University education;
• Production of products formed from scientific and technological results in accordance with the law on science and technology;
• Manufacture of products on the list of supporting industry products prioritized for development;
• Preservation of drugs, manufacture of medical equipment;
• Producing goods and providing services to create or join value chains, industry clusters.

          Second, amending and supplementing beneficiaries of investment incentives.  Accordingly, there are 03 subjects enjoying investment incentives modified, and 02 additional subjects as follows:

• Investment projects for creative startups, innovation centers, research and development centers;
•  Investment in and trading in the product distribution chain of small and medium enterprises;  investment in and commercial operation of technical facilities to support small and medium enterprises, small and medium-sized enterprise incubators;  investing in and operating co-working areas to support small and medium-sized enterprises to start-up creations in accordance with the law on support for small and medium-sized enterprises.

           Thirdly, add investment incentives: Quick depreciation, increase deductible expenses when calculating taxable income.

           Fourthly, the Investment Law 2020 also adds a number of provisions on the principles and conditions for application of investment incentives, such as: application of time incentives, according to project implementation results;  Investors must ensure that the preferential conditions are met during the period of enjoying incentives according to the provisions of law, …

           Fifth, unlike the 2014 Investment Law, the new Law has special investment incentives and support policies that allow special incentives (up to 50% more) to create policies to attract FDI inflows.