Incentives under the Vietnam Digital Technology Industry Law 2025

Digital transformation is the “golden key” for Vietnam to enter the era of the knowledge economy. However, digital technology, especially in key areas, depends heavily on high-quality human resources. Meanwhile, digital technology human resources in Vietnam are seriously lacking. Therefore, the Vietnam Digital Technology Industry Law 2025 was issued to provide incentives, policies, and specific regulations that create conditions for Vietnamese and foreign enterprises to invest and develop with confidence. The following article by Viet An Law will provide customers with some incentives under the Vietnam Digital Technology Industry Law 2025.

Comprehensive incentives under the Vietnam Digital Technology Industry Law 2025

The Digital Technology Industry Law 2025 has introduced many systematic incentive policies, covering the entire industry development chain, including: financial support, infrastructure, corporate tax and import-export tax, land and customs procedures; encouraging investment in training, exemption from work permits, granting 5-year visas, scholarships and personal income tax incentives for experts; supporting investment in research, investment costs in research facilities are included in tax-deductible expenses.

Exemption and reduction of corporate income tax for digital technology projects

Based on the Law on Corporate Income Tax 2025 and the Digital Technology Industry Law 2025, the state allows tax exemption/reduction for enterprises implementing projects in the priority digital technology list.

Applicable subjects:

Digital technology innovation startups, FDI enterprises and technology corporations investing in high-tech projects in Vietnam operating in the fields of:

• Research and development of digital technology products and services (Article 16 of the Digital Technology Industry Law 2025);
• Investment in production of digital technology products and provision of digital technology services (Article 28 of the Digital Technology Industry Law 2025);
• On-site export and import between export processing enterprises (Article 40 of the Digital Technology Industry Law 2025);

Tax exemption and reduction period

• According to Clause 1, Article 13 of the Law on Corporate Income Tax 2025, enterprises operating in the digital technology sector are subject to a tax rate of 10% for 15 years.
• Clause 1, Article 14 of the Law on Corporate Income Tax 2025, tax exemption for up to 4 years and 50% reduction of tax payable for no more than the next 9 years.

Exemption and reduction of corporate income tax help enterprises save costs, have more capital to carry out R&D projects; and attract large technology corporations to invest in Vietnam. The State can grow the digital technology industry, attract FDI capital, and create high-quality jobs.

Financial support, investment capital, and preferential loans

In order to promote digital transformation, our state has many financial sources for the development of the digital technology industry. Each budget source will be used for different investment and development purposes. According to Article 11 of the Digital Technology Industry Law 2025, there are 3 main budget sources:

• Budget sources for science, technology, innovation and digital transformation according to the provisions of the law on state budget; science, technology and innovation; digital transformation;
• State budget sources for development investment and regular expenditures for economic activities according to the provisions of the law on state budget; Investment support fund according to the provisions of the law on investment;
• Loans, contributions, sponsorships, and investments from domestic and foreign enterprises, organizations, and individuals include the Science and Technology Development Fund of enterprises and other legal funds and financial sources as prescribed by law.

Support form:

• Low-interest loans;
• Support counterpart funds when businesses call for investment;
• Credit guarantees for technology startups.

Who can receive financial support:

• Startups need seed capital;
• Large enterprises invest in R&D;
• Research institutes.

The capital support policy is long-term and implemented annually.

Financial incentives are always the incentives that most start-up enterprises are most interested in. This will help enterprises confidently participate in investment and development; increase the ability to attract private capital and FDI; encourage cooperation between enterprises – research institutes – the State.

Incentives for access to land and technical infrastructure in digital technology zones

Pursuant to the Land Law 2024 and the Digital Technology Industry Law 2025, digital technology enterprises are given priority to rent land at preferential prices and are provided with telecommunications infrastructure and data centers in high-tech zones.

Pursuant to Article 21 of the Digital Technology Industry Law 2025, the State will prioritize allocating budget resources to invest in building essential and shared digital technology industry infrastructure for:

• Facilities for research, design, and trial production of digital technology products and services;
• National shared key laboratory for digital technology;
• Facilities for measuring, testing, and evaluating digital technology products and services;
• Data centers;
• Concentrated digital technology zones;
• Other essential and shared digital technology industrial infrastructure.

Investment projects on construction and business of infrastructure of concentrated digital technology zones and investment projects in the field of digital technology industry using land in concentrated digital technology zones are exempted from or have their land rent reduced in accordance with the provisions of the law on land and other relevant laws.

Investment projects for manufacturing products and providing digital technology services; innovative start-up projects in the digital technology industry, as prescribed in Articles 28 and 29 of the Digital Technology Industry Law 2025 will receive incentives and support according to land law regulations.

Applicable policy:

• Land lease term can be up to 50-70 years, according to the preferential land policy for high technology stipulated in Article 204 of the Land Law
• Ready support for telecommunications infrastructure, research labs, etc.

This preferential policy creates conditions for technology enterprises to set up R&D headquarters in Vietnam instead of other countries. The State can promote the development of digital technology clusters and increase industry connectivity.

Personal income tax incentives for experts

Applicable subjects: High-quality digital technology industry human resources (both domestic and foreign), working in the following fields:

• Research and development (R&D) of digital technology;
• Production of key digital technology products (e.g., chips, AI, cloud computing, etc.);
• Training and development of digital technology human resources in Vietnam.

Tax-exempt period:

• Personal income tax exemption for 5 years, calculated from the date of signing the first labor contract with digital technology organizations and enterprises in Vietnam.

Tax-exempt income range:

• Income from salaries and wages when participating in digital technology industry projects
• Income from scientific research and digital technology development activities

This policy applies not only to foreign experts coming to Vietnam but also to Vietnamese experts if they work in the digital technology industry according to the “high-quality human resources” standard.

New incentives for Work Permits

In addition to attracting foreign expert talent resources with personal income tax incentives, Decree 219/2025/ND-CP also has new regulations on Work Permits such as:

• Clause 3, Article 3 of Decree 219/2025/ND-CP, on the conditions for granting Work Permits to experts, no longer requires 3 years of experience but has more flexibility;
• Expanding 15 cases of Work Permit exemption: adding cases of foreigners working in the fields of finance, science, technology, innovation, national digital transformation, priority fields for socio-economic development, confirmed by ministries, ministerial-level agencies or provincial People’s Committees (Article 7 of Decree 219/2025/ND-CP);
• Point a, Clause 13, Article 7 of Decree 219/2025/ND-CP, foreign workers working in Vietnam with a total working time of less than 90 days in a year (from January 1 to December 31) are not required to be granted a work permit;
• According to Article 29 of Decree 219/2025/ND-CP, a work permit can be extended only once, for a period of no more than 02 years.

In addition to the incentives on Work Permits for foreign workers working in Vietnam, there are also new regulations to facilitate the procedures for granting and using Work Permits:

• Article 4 of Decree 219/2025/ND-CP, the authority to issue new, reissue, extend, revoke work permits as well as certificates of non-work permit issuance belongs to the Provincial People’s Committee;
• Clause 3, Article 6 of Decree 219/2025/ND-CP, employers are allowed to submit online at the same time the application for a Work Permit and a Criminal Record;
• Clause 4, Article 9 of Decree 219/2025/ND-CP, does not require procedures for issuance of a certificate of non-exemption from the issuance of a Work Permit, but must notify the local authority where the employee is expected to work at least 03 working days in advance of the date the foreign employee is expected to start working in Vietnam;
• According to the provisions of Clause 5, Article 22 of Decree 219/2025/ND-CP, foreign workers are allowed to use Work Permits to work in many provinces and centrally run cities;
• Article 21 of Decree 219/2025/ND-CP stipulates that the term of a work permit and a certificate of non-work permit issuance shall not exceed 02 years;
• Article 30 and Article 32 of Decree 219/2025/ND-CP stipulate more specifically the cases of revocation of work permits or certificates of non-issuance of work permits.

These new points facilitate foreign enterprises and workers, attract many young and potential talents in the digital transformation period, and attract high-tech FDI.

Above are some incentives under the Vietnam Digital Technology Industry Law 2025. If you have any questions related to the digital technology industry, please contact us – Viet An Law for quick, accurate, and timely support.