I. Legal basis

• Circular No. 33/2025/TT-BKHCN
• Digital Technology Industry Law 2025
• Decree No. 320/2025/ND-CP

Circular No. 33/2025/TT-BKHCN applies to agencies, organizations, and enterprises involved in electronic equipment production projects in Vietnam, and provides detailed guidance on Clause 5, Article 40 of the Digital Technology Industry Law. The Circular shall take effect from 01 January 2026.

II. Conditions for electronic equipment manufacturing enterprises to qualify for Corporate Income Tax Incentives

Enterprises carrying out electronic equipment manufacturing projects that are eligible for corporate income tax incentives are determined as follows:

• The criterion for using semiconductor chips that are designed, manufactured, or packaged and tested in Vietnam in the products of the electronic equipment manufacturing project is met if the enterprise falls under one of the following cases:
  • Using semiconductor chips whose design is owned by a Vietnamese organization, enterprise, or individual. Ownership may be established through self-design, commissioning others—including Vietnamese individuals—to carry out the design, or purchasing the design from other entities.
  • Using semiconductor chips that are manufactured, packaged, or tested at factories or production lines located in Vietnam.
• Regarding the criterion on scientific research, technological development, and innovation, the enterprise must simultaneously satisfy the following two requirements:
  • The enterprise must have a scientific research, technological development, and innovation unit with a minimum of ten (10) personnel holding at least a university degree. At least 50% of the personnel in this unit must be Vietnamese citizens.
• For small and medium-sized enterprises as defined under the Law on Support for Small and Medium-Sized Enterprises, it is not mandatory to have a dedicated scientific research, technological development, and innovation unit; however, the enterprise must have at least three (03) personnel with a university degree or higher carrying out such activities. At least 50% of the personnel engaged in scientific research, technological development, and innovation must be Vietnamese citizens.
• The enterprise must incur total expenditures on scientific research, technological development, and innovation activities amounting to at least 2% of average net revenue over three consecutive financial years, or at least VND 200 billion per year over three consecutive financial years. In cases where the enterprise has been operating for less than three years, the average shall be calculated over the entire period of operation since establishment, provided that it is not less than one full financial year.
• The products of the electronic equipment manufacturing project in Vietnam must have designs (including requirement specifications, system architecture, detailed designs, schematic diagrams, printed circuit board layouts, and related technical documentation) owned by the enterprise itself. Ownership may be established through self-design, commissioning others—including Vietnamese individuals—to carry out the design, or purchasing the design from other entities.
• Criterion on the development of domestic supply chains and technology transfer:
  • At least 30% of the enterprises involved must be Vietnamese enterprises participating in and performing contracts for assembly, supply of raw materials, components, or services directly serving the electronic equipment manufacturing project.
  • Technology must be transferred to at least one (01) Vietnamese organization or enterprise within five (05) years from the date of issuance of the Investment Registration Certificate, the Decision approving the investment policy, or a written agreement with the competent state authority. The form and content of the technology transfer shall be conducted in accordance with the provisions of the law on technology transfer.

III. Corporate Income Tax rate eligible for incentives

Article 19 of Decree No. 320/2025/ND-CP stipulates the specific preferential corporate income tax rates as follows:

1. A corporate income tax rate of 10% shall be applied for fifteen (15) years to:

• The income of the enterprise derived from the implementation of new investment projects specified in Points a, b, c, d, and đ of Clause 2, Article 18; and the income of the enterprise specified in Point e, Clause 2, Article 18 of this Decree;
• The income of the enterprise derived from the implementation of investment projects specified in Points g and h, Clause 2, Article 18 of this Decree;
• The income of the enterprise derived from the implementation of new investment projects located in areas specified in Point a, Clause 3, Article 18 of this Decree;
• The income of the enterprise derived from the implementation of new investment projects in high-tech zones, high-tech agricultural zones, and concentrated digital technology zones; and from new investment projects in economic zones located in tax incentive areas as specified in Points a and b, Clause 3, Article 18 of this Decree, including cases where new investment projects in economic zones are carried out on sites with more than 50% of their area located within the tax incentive areas specified in Points a and b, Clause 3, Article 18 of this Decree.

2. A corporate income tax rate of 10% shall be applied for the entire operational period to:

• The income of the enterprise in tax incentive areas specified in Point b, Clause 3, Article 18 of this Decree derived from activities in the sectors and trades specified in Points k and l, Clause 2, Article 18 of this Decree;
• The income of the enterprise derived from activities in the sectors and trades specified in Points i, r, and s, Clause 2, Article 18 of this Decree;
• The income of the publisher derived from activities in the sector and trade specified in Point t, Clause 2, Article 18 of this Decree;
• The income of cooperatives and cooperative unions specified in Point q, Clause 2, Article 18 of this Decree, which are not located in the areas specified in Clause 3, Article 18 of this Decree;
• The income of press agencies derived from activities in the sectors and trades specified in Point u, Clause 2, Article 18 of this Decree.

3. A corporate income tax rate of 15% shall be applied for the entire operational period to the income of enterprises located in the areas specified in Clause 3, Article 18 of this Decree derived from activities in the sectors and trades specified in Point l, Clause 2, Article 18 of this Decree.
4. A corporate income tax rate of 17% shall be applied for a period of ten (10) years to:

• New investment projects in the sectors and trades eligible for incentives as specified in Points m, n, and o, Clause 2, Article 18 of this Decree;
• New investment projects implemented in areas specified in Point b, Clause 3, Article 18 of this Decree;
• New investment projects in economic zones not located in the areas specified in Points a and b, Clause 3, Article 18 of this Decree, including cases where a new investment project of an enterprise is implemented in an economic zone and more than 50% of the project site area is situated outside the tax incentive areas specified in Points a and b, Clause 3, Article 18 of this Decree.

5. A corporate income tax rate of 17% shall be applied for the entire operational period to the income of enterprises specified in Point p, Clause 2, Article 18 of this Decree.

The Decree specifies that the Prime Minister shall decide on extending the application period of the preferential tax rate for a maximum of fifteen (15) years in the following cases:

• New investment projects specified in Points a, b, d, and đ, Clause 2, Article 18 of this Decree, with a minimum investment capital of VND 6,000 billion and significant socio-economic impact that require special encouragement;
• Investment projects specified in Point g, Clause 2, Article 18 of this Decree that meet one of the following criteria:
  • Manufacture of goods with global competitiveness, generating revenue of over VND 20,000 billion per year no later than five (05) years from the date of revenue generation from the investment project;
  • Regularly employing more than 6,000 workers, as determined in accordance with the labor laws;
  • Investment projects in the field of technical economic infrastructure, including: development of water plants, power plants, water supply and drainage systems, bridges, roads, railways, airports, seaports, river ports, train stations, new energy, clean energy, energy-saving industries, and petrochemical refining projects.

For new investment projects specified in Point h, Clause 2, Article 18 of this Decree, the Prime Minister shall decide on applying a reduced tax rate of no more than 50% of the rate stipulated in Clause 1 of this Article; the period for applying the preferential tax rate shall not exceed 1.5 times the period specified in Clause 1 of this Article and may be extended for up to fifteen (15) years, provided that it does not exceed the duration of the investment project.

The period for applying the preferential tax rate to income derived from the implementation of a new investment project of the enterprise (including projects specified in Point g, Clause 2, Article 18 of this Decree) shall be calculated from the first year in which the new investment project generates revenue.

IV. About Us, Hankuk Law Firm

■ Hankuk Law Firm – Introduction

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