ANNOUNCEMENT 11 Apr 2017

The Government of Vietnam has announced a new policy for the development of solar power projects that incentivizes investments in these projects. As part of the investment package, the policy provides import duty exemption on fixed assets imported for the projects and on supplies, raw materials and semi-finished that are not produced domestically.

NUMBER OF INTERVENTIONS

2

  • 1 harmful
  • 0 neutral
  • 1 liberalising
Inception date: 01 Jun 2017 | Removal date: 30 Jun 2019

Import tariff

The solar power policy provides various incentives for investments in solar power projects such as -

  • Long-term (20 years) feed-in-tariffs via purchase power agreements
  • Opportunity to finance capital from Vietnamese or foreign organisations and individuals
  • Import duty exemption is provided for fixed assets as part of the project
  • Corporate Income Tax reduction and exemption is also available to the solar power projects in line with other projects that receive prioritized investment incentives as per current tax laws
  • Land use charge and rent reductions or exemptions, on land used for the solar projects, transmission lines and transformers, will be provided as are currently available to other projects that get investment incentives
  • Support from the Provincial People's Committee for land allocation and land clearance fee compensation 

AFFECTED SECTORS

 
Inception date: 01 Jun 2017 | Removal date: 30 Jun 2019

Tax or social insurance relief

As noted in the description of associated policy instrument, certain tax exemptions are offered on solar power projects.