Priority sectors and areas for foreign investment in Vietnam

Vietnam, with its favorable geographical position, large population and strong economic development, has become a potential investment destination for foreign enterprises. In addition to the diversity in economic sectors and industries with high potential, Vietnam also has many investment incentives that can attract investment and expansion needs of foreign investors. S4B Vietnam will point out some general details about the sectors, fields and areas that Vietnam supports with investment incentives for foreign enterprises when investing in Vietnam, along with a perspective on the challenges Vietnam must face in 2025 to maintain its attractiveness to foreign investment capital.

The list of industries and trades with investment incentives and special investment incentives is specified in Appendix II of Decree 31. The list of regions (localities) with investment incentives is specified in Appendix III of Decree 31.

Section A, Appendix II of Decree 31/2021/ND-CP details 32 industries and occupations with special investment incentives, including 8 industries and occupations of High technology, information technology, supporting industry; 8 industries and occupations of agriculture; 6 industries and occupations of environmental protection, infrastructure construction; 10 industries and occupations of culture, society, sports, and health. Specifically:

I. Tech industry investment in Vietnam and Automobile industry in Vietnam

  1. . Application of high technology is on the List of high technology.
  2. Manufacturing products on the List of high-tech products.
  3.  Manufacturing products on the List of supporting industry products.
  4. Incubation of high technology, incubation of high-tech enterprises;…
  5. Production of software products, digital information content products, key information technology products, software services according to the provisions of law on information technology;…

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II) Vietnam agriculture export potential

  1. Planting, caring for, nurturing, protecting and developing forests, developing production forests in bare lands, bare hills, planting large timber forests and converting small timber forests into large timber forests;…
  2. Cultivation, processing, preservation of agricultural, forestry and aquatic products, processing of non-timber forest products.
  4. Production, propagation and crossbreeding of plant varieties, livestock breeds, forestry varieties, aquatic varieties, development of high-tech forestry plant varieties.
  5. Production, exploitation and refining of salt.
  6. Offshore fishing combined with the application of advanced fishing gears; fishing logistics services;…

III) Renewable energy investments in Vietnam

  1. Collecting, treating, recycling, and reusing concentrated waste.
  2. Building and operating infrastructure for industrial parks, export processing zones, high-tech zones, and functional areas in economic zones.
  3. Investing in developing water plants, power plants, and water supply and drainage systems;…
  4. Developing public passenger transport in urban areas.
  5. Investing in building, managing, and operating markets in rural areas.

IV) Tourism and hospitality business in Vietnam and

  1. Construction of social housing, resettlement housing.
  2. Investment in and business of national museums, ethnic cultural houses; ethnic song, dance and music troupes; theaters, film studios, film production and film printing facilities; fine arts and photography exhibition houses; production, fabrication and repair of ethnic musical instruments; maintenance and conservation of museums, ethnic cultural houses and cultural and art schools; establishments and craft villages to introduce and develop traditional industries and occupations; investment in and business of folk performing arts; investment in the National Library of Vietnam, public libraries of provinces and centrally run cities and libraries with important roles.

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V) Healthcare and pharmaceutical investments

  1. Investment in Methadone production facilities.
  2. Investment in business facilities for disease prevention and control.
  3. Scientific research on pharmaceutical technology, biotechnology to produce new drugs, new veterinary drugs, vaccines, biological products for veterinary use.
  4. Production of raw materials for drugs and main drugs, essential drugs, drugs for preventing and combating social diseases, vaccines, medical biological products, drugs from medicinal herbs, oriental medicine;…

VI) Manufacturing opportunities in Vietnam

  1. Investment in research and development (R&D).
  2. Production of steel billets from iron ore, high-grade steel, alloys.
  3. Production of coke, activated carbon.
  4. Production of energy-saving products.
  5. Production of petrochemicals, pharmaceuticals, basic chemicals and rubber.

VII) Real estate market in Vietnam

  1. Investing in the infrastructure of educational and training establishments and vocational training establishments; investing in the development of non-public educational and training establishments and vocational training establishments at all levels: preschool education, general education, and vocational education.
  2. Investing in the business of physical education and sports centers, gyms, sports clubs, stadiums, swimming pools; facilities for the production, fabrication, and repair of equipment and means for physical education and sports.
  3. Investing in the business of district-level public libraries, specialized libraries, university libraries, libraries belonging to educational establishments, community libraries, and private libraries that serve the community and develop a reading culture for lifelong learning.

To attract foreign investment, Vietnam has introduced many investment incentives stipulated in the 2020 Investment Law No. 61/2020/QH14 (“Investment Law 2020”), including industries and regions with investment incentives and special investment incentives as detailed in Decree 31/2021/ND-CP (“Decree 31”) detailing and guiding the implementation of the 2020 Investment Law effective from March 26, 2021.

Which industry should you invest in in Vietnam? How is Vietnam fintech ecosystem or E-commerce growth in Vietnam? Vietnam’s economy is growing strongly, becoming an attractive destination for foreign investors targeting the potential Southeast Asian market. Are you ready to take advantage of this opportunity?

S4B Vietnam is a highly trusted full-service business consulting firm in Vietnam, composed of experienced and talented lawyers and professionals. Based in Hanoi and Ho Chi Minh City, S4B Vietnam’s main objective is to provide the most practical, effective and legal advice and solutions to domestic and international clients. If you need assistance, you can email us at the address below.

>>>Read more: New FDI regulations for foreign investors in Vietnam

S4B Vietnam

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  • Tel: + 84 24 3974 4181
  • Email: service@s4b.com.vn

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