New FDI regulations for foreign investors in Vietnam
In the context of economic integration, FDI enterprises have emerged as an effective channel to attract investment capital. So what are FDI enterprises? What incentives does our country have specifically for them? Let’s look at New FDI regulations for foreign investors in Vietnam with S4B Vietnam in the article below!
1. What are FDI enterprises?
FDI stands for Foreign Direct Investment, in Vietnamese it is Foreign Direct Investment. Foreign direct investment (FDI) is a form of investment that foreign enterprises, organizations or individuals carry out by purchasing shares, establishing subsidiaries, joint ventures or opening branches in another country.
According to Clause 22, Article 3 of the Investment Law 2020, Foreign investment law changes in Vietnam, “Economic organizations with foreign investment capital” are economic organizations with foreign investors as members or shareholders. Thus, according to the provisions of the Investment Law 2020, economic organizations with foreign investment capital are FDI enterprises in Vietnam.
FDI enterprises play an important role in the socio-economic development of Vietnam. FDI enterprises have contributed to promoting economic growth, creating jobs, improving labor productivity, transferring advanced technology, techniques and management. In addition, FDI enterprises also contribute to international economic integration and enhance Vietnam’s position in the international arena.
However, having many FDI enterprises investing in Vietnam also poses potential risks such as:
- Trade imbalance: When FDI enterprises export more than they import, it can lead to a trade deficit for the country attracting investment.
- Environment: Some production and business activities of FDI enterprises can cause environmental pollution.
- Culture: The introduction of foreign culture can affect national cultural identity.
Therefore, Vietnam needs to have a reasonable and selective FDI attraction policy and New FDI regulations for foreign investors in Vietnam, ensuring harmony between the interests of the country and the interests of foreign investors.
Recent amendments in Vietnam’s foreign investment laws
2. Incentives specifically for FDI enterprises in Vietnam
To attract more foreign investors to invest in our country, the State has had many preferential policies and Vietnam’s updated FDI law 2025 for FDI enterprises and Vietnam’s legal framework for international investors on taxes, land, labor, priority in implementing administrative procedures, etc. Specifically:
2.1- Tax incentives
– Corporate income tax:
- Exemption from corporate income tax for up to 4 years from the date of commencement of business; 50% reduction of tax payable for up to 9 subsequent years for highly effective investment projects
- Apply preferential tax rates of 10%, 15% and 20% for investment incentive projects.
– Import and export tax: Exemption and reduction of import tax on machinery, equipment, materials, and spare parts for production and business.
– Value added tax (VAT): Exemption and reduction of VAT on some exported goods and services.
– Land use tax: Exemption and reduction of land use tax for investment projects with large land areas and long-term land use.
2.2- Incentives on administrative procedures:
- Investment procedures are simplified, creating favorable conditions for FDI enterprises to carry out investment and business procedures.
- Establishment of FDI enterprises is carried out quickly and conveniently.
- FDI enterprises enjoy investment support services such as: investment consulting, information provision, answering questions, and administrative procedure support.
2.3- Land incentives
- FDI enterprises are allowed to lease land at preferential prices and for long-term land leases.
- The State supports FDI enterprises in site clearance and infrastructure construction.
2.4- Labor incentives
- FDI enterprises are allowed to recruit domestic and foreign workers.
- The State supports vocational training for FDI enterprise workers.
Vietnam’s legal framework for international investors
2.5- Foreign exchange incentives
- FDI enterprises are allowed to freely convert foreign exchange.
- FDI enterprises are allowed to transfer profits abroad after fully paying taxes.
Some other incentives
- Incentives on electricity, water, and telecommunications prices.
- Incentives on intellectual property protection.
- Incentives on participation in promotional and trade promotion programs.
In addition, it should be noted that specific incentives for FDI enterprises will depend on the investment sector, project implementation location, and project scale.
3. Necessary certificates when working as an accountant in an FDI company
After the above requirements when working as an accountant for an FDI company, to be able to work as an accountant in an FDI company, you will also need additional soft skills to serve the job.
According to Circular 29/2022/TT-BTC effective from July 18, 2022, Recent amendments in Vietnam’s foreign investment laws, IT and foreign language certificates will be removed for accounting civil servants. However, to do the best accounting for FDI companies and easily translate accounting documents to eliminate difficulties for FDI companies, or find solutions to accounting problems in FDI companies, accountants should have these two types of certificates to ensure the quality of work.
S4B Vietnam has services to support your business in FDI accounting. If your business still has questions regarding Vietnam’s updated FDI law 2025 or needs advice on accounting work for FDI companies, please contact our hotline + 84 24 3974 4181 or send questions to our email at service@s4b.com.vn
>>>Read more: Vietnam tax benefits for foreign investors
S4B Vietnam
- Address: Unit 701B – 701C, Tower A, Handi Resco 521 Kim Ma Street, Ba Dinh District, Hanoi, Vietnam.
- Tel: + 84 24 3974 4181
- Email: service@s4b.com.vn
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