“Unlike the 2005 Investment Law, the new Investment Law in 2014 includes clearer details about business sectors subject to investment incentives, such as: production of new materials, new energy, clean energy, renewable energy; productions of products with at least 30% value added; and energy-saving products; etc.“
In agriculture, the sectors given incentives are: cultivation and processing of agriculture, forestry, and aquaculture products; afforestation and forest protection; salt production; fishing and ancillary fishing services; production of plant varieties, animal breads, and biotechnology products.
In addition, business lines in education and healthcare are specifically regulated in the new Investment Law. Accordingly, the field of education consists of the following sectors: preschool education, compulsory education, vocational education; and the sectors in healthcare are: medical examination and treatment; production of medicines, medicine ingredients, essential medicines, medicines for prevention and treatment of sexually transmitted diseases, vaccines, biologicals, herbal medicines, oriental medicines; scientific research on preparation technology and/or biotechnology serving creation of new medicines; investment in geriatric centers, mental health centers, treatment for agent orange patients; care centers for the elderly, the disabled, orphans, and street children.
Similarly, other sectors entitled to investment preferences such as information technology, sports, construction and development of infrastructural works, etc., also clearly prescribed in the new Investment Law.
Where their choice of invested areas does not fall into the abovementioned categories of business sectors, investors are still eligible to enjoy investment incentives in the following cases:
However, PLF would like to point out the fact that not every investment project is entitled to receive incentives, which are only applied to new investment projects and expansion projects. It also means that although certain investment projects are implemented under the aforementioned business sectors or satisfy the conditions listed above, they shall not be permitted to enjoy investment preferences if established and brought into operation before the new regulations take effect. Only when the investors conduct new investment projects or expand the current ones and meet the conditions on incentives shall such incentives be applied.
Noticeably, projects investing in mineral exploitation, production and trading of goods and services subject to excise tax (except for motor vehicle production) shall not receive the investment incentives mentioned above.
Furthermore, the 2014 Investment Law also offers more forms of support than the 2005 Investment Law, specifically: support for the development of technical infrastructure and social infrastructure within and beyond the perimeter of projects of human resources development; credit support; and support for relocation of manufacturing facilities from urban areas; etc.
PLF Law Firm