ANNOUNCEMENT 08 Nov 2013In November 2013, the government of Vietnam announced changed incentives for foreign investors entering the country.
NUMBER OF INTERVENTIONS
On 8 November 2013, Vietnam issued Decree No. 154/2013/ND-CP providing incentives for investments in Information Technology (IT) projects in the centralized IT Zone that meet certain criteria. The incentive may be in the form of financial support, tax incentives, investment credit, import duty exemption for import of relevant fixed assets and favourable import procedures for other related goods and services.
The Decree came into effect from 1 January 2014.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries. The measure is classified amber because it likely combines measures that favour some exporters into Vietnam (lower tariff barriers etc) but may also disadvantage foreign firms that export final IT products to Vietnam.