Legal Update on Decree 182

On 31 December 2024, the Vietnam Government issued Decree 182/2024/NÐ-CP (“Decree 182”) on the establishment, management and use of the Investment Support Fund (ISF) to implement the supporting policy to R&D investment projects. 

For the first time ever, Decree 182 set forth incentive scheme, marking a significant milestone in the country's efforts to attract world-class high-tech businesses to further invest in Vietnam. 

For annual expenses support, the  support is aimed at providing annual financial support to enterprises and investment projects in the high-tech sector and R&D centers. The initial investment support would be granted to enterprises with R&D centers in semiconductors and artificial intelligence (AI). 

The determination of eligible subjects may depend on total investment scale or annual revenue resulted from the project and the specific conditions shall be based on a case-by-case basis. 

Certain types of annual expenses that incurred during business operation are eligible for support from the ISF, such as R&D expenses, investment costs for new fixed asset, manufacturing expenses of high-tech products, etc, if certain conditions are met. The subsidy level varies, depending on the applicable subject and types of expenses to claim for subsidy. 

Businesses investing in semiconductor and AI R&D projects can receive up to 50% of their initial investment costs if they meet specific requirements outlined in the decree. These projects must demonstrate their potential to enhance Vietnam’s innovation ecosystem and contribute to the development of groundbreaking technologies and products. 

Support criteria 

To qualify for support, businesses must meet the following cretiria 

• Having no outstanding tax or budget-related debts. 

• Having their R&D projects in line with Vietnam’s prioritized high-tech industries. 

• Committing to a minimum investment capital of VND 3 trillion with at least VND 1 trillion disbursed within three years of receiving the investment decision. 

Support to High-Tech Enterprises 

Decree 182 also extends benefits to a broader range of tech enterprises, including those engaged in high-tech product manufacturing, R&D center investments, and the application of advanced technologies. General support measures are as follows: 

• Provision of dunds to training and workforce development. 

• Financial aid for R&D activities. 

• Assistance with fixed asset investments and infrastructure development. 

• Support for high-tech product manufacturing.