Vietnam’s Draft Decree to Support Tech Businesses: A New Era for Industrial Real Estate

Vietnam is taking bold steps to strengthen its position as a regional hub for high-quality investment. The Ministry of Science and Technology has recently introduced a draft decree that provides a comprehensive framework of incentives for science and technology enterprises (STEs).

If passed, the decree will offer tax breaks, credit support, land incentives, and preferential conditions for R&D centers, software producers, and tech-driven manufacturers. For international investors, this marks an important milestone: Vietnam is not only a low-cost manufacturing base but also a rising destination for innovation-driven industries.

Key Provisions of the Draft Decree

1. Tax Incentives for Tech Enterprises

The draft outlines multiple tax measures designed to reduce costs and encourage innovation:

• Corporate Income Tax (CIT): Income from certified science and technology products may be eligible for CIT exemptions or preferential rates. Software Services: Only products categorized as “new services” will qualify for tax relief, ensuring incentives are focused on innovation. Personal Income Tax (PIT): Researchers and specialists conducting technology-related assignments may enjoy PIT exemptions, strengthening Vietnam’s talent pool competitiveness.

2. Access to Credit and Capital

The decree also proposes enhanced access to financial resources:

• Preferential Loans: Enterprises will be able to access State-backed loans for R&D and production.
• Innovation Funds: Enterprises may receive capital support or interest subsidies through the National Technology Innovation Fund and local science & technology funds.

This measure reduces financial barriers for businesses investing in advanced facilities and equipment.

3. Land-Use Incentives

Land remains one of the biggest challenges for new industrial and tech projects. The draft decree introduces preferential land-use policies — including reduced leasing costs or exemptions — though final details will be clarified in upcoming circulars.

For industrial developers, this signals stronger demand for ready-built, flexible facilities in strategic locations.

4. Centralized Digital Technology Parks

One of the most forward-looking elements of the decree is the proposed creation of centralized digital technology parks. These hubs are designed to:

• Connect R&D with commercialization and incubation.
• Support the growth of digital enterprises.
• Provide incentives for high-level talent, including PIT exemptions for qualified experts.

This model mirrors successful international tech ecosystems, positioning Vietnam to attract not just manufacturers, but also global innovators.

Why This Matters for Industrial Real Estate

The draft decree is more than a legal update — it is a strategic catalyst for the industrial property market. By encouraging high-value industries, Vietnam is reshaping demand in three key ways:

1. Integration of Tech and Manufacturing

Enterprises will require facilities that combine production floors with R&D spaces, demanding modern and flexible industrial layouts.

2. Rising Quality of FDI

Vietnam is already a top FDI destination, but these policies elevate its ability to attract higher-value investments in semiconductors, digital services, and advanced manufacturing.

3. Higher Infrastructure Standards

Global tech tenants expect stable utilities, digital connectivity, and smart facilities. This means industrial real estate must evolve beyond traditional factories to deliver high-performance, future-ready infrastructure.

Core5 Vietnam’s Perspective

At Core5 Vietnam, we see this decree as both an opportunity and a responsibility. As international developers consider Vietnam for long-term investments, the need for world-class industrial infrastructure becomes more urgent.

Our portfolio is already positioned to serve this demand. From our Hai Phong project — located in one of Vietnam’s fastest-growing industrial hubs — to developments in Hung Yen and the upcoming Core5 Phu Tho, we are building facilities designed to support next-generation industries.

Looking Ahead

The draft decree supporting tech businesses reflects Vietnam’s determination to move up the value chain, from low-cost assembly to innovation-led growth. For industrial developers, this represents a clear call to action: the next chapter of Vietnam’s growth will be defined by quality, technology, and sustainability.

For manufacturers, logistics providers, and global investors, this is a development that signals more than just a local milestone—it represents Vietnam’s next step toward becoming a regional trade powerhouse.

For investors seeking to capture opportunities, Core5 Vietnam is not just a developer — we are your strategic partner in long-term success.

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