Scenario: a European investor is developing two parallel projects in Ba Ria-Vung Tau: a 500 MW offshore wind farm and a wind-equipment factory inside Phu My 3 Industrial Park. Do both models stack incentives the same way?
Renewable energy: encouraged on both pillars
The Law on Investment 143/2025/QH15 (effective 1 March 2026, replacing Law 61/2020/QH14) lists in Articles 15 and 16 the incentive forms: corporate income tax, land-rent and land-use-fee exemptions or reductions, and investment support. The Law on Corporate Income Tax 67/2025/QH15 (effective 1 October 2025) sets the standard 20% rate; 15% for annual revenue up to VND 3 billion, 17% for revenue over VND 3 billion to VND 50 billion; encouraged-sector projects — including renewable energy — qualify for 10% over 15 years, a four-year exemption and a 50% reduction of payable tax for nine further years.
Decree 31/2021/ND-CP places renewable energy and renewable-equipment manufacturing on the encouraged list; its schedules remain citable until replaced. Decree 103/2024/ND-CP covers exemption from and reduction of land-use fees, land rents and sea-area rents — a key detail for offshore wind. Since Law 67/2025, a park location no longer automatically confers tax incentives, but for an encouraged sector the sector pillar suffices.
Two models, two different baskets
The offshore wind farm: generation income — if encouraged-sector conditions are met — falls under the 10%/15-year, four-year-exempt, nine-year-half-rate frame; sea-area rent for the turbine zone is relieved under Decree 103/2024. An offshore project sits outside any industrial park, so the “parks no longer auto-qualify” rule does not bite; instead, sea-area allocation and grid connection are its own bottlenecks.
The wind-equipment factory in Phu My 3: also encouraged (renewable-equipment manufacturing), with a similar tax frame on manufacturing income plus in-park land-rent relief under Decree 103/2024. The practical difference: the in-park factory deploys faster on ready infrastructure, while the offshore farm carries larger capital and a longer payback — the incentive structure must match each model’s cash flow.
The selection rule where several frames exist
Article 15 of the Law on Investment bars two same-type tax incentives at the same time and lets the investor choose the most favourable tier. For an investor running two projects in parallel, each project is its own “basket”: one project’s tax frame cannot be applied to the other, and two rate frames cannot be stacked onto the same income stream.
A framework illustration: a qualifying wind farm holds 10%/15 years, four-year exemption and 50% reduction for nine years on generation income, plus sea-area rent relief; the equipment factory holds a similar basket on manufacturing income, plus in-park land-rent relief. All figures are conditional legal frames, not absolute commitments for any specific project.
Checklist for renewable investors
Identify the project model (generation versus equipment manufacturing) and map it against Appendix II of Decree 31/2021; for offshore wind, clarify sea-area allocation and sea-area rent under Decree 103/2024; for the in-park factory, lock land-rent relief with the park developer; record incentives in each project’s Investment Registration Certificate; self-declare at annual finalisation and maintain conditions throughout.
1. Is offshore wind an encouraged sector?
Yes, if conditions are met. Renewable energy sits on the encouraged list in Decree 31/2021; projects must satisfy the specific scale, technology and legal conditions.
2. How is sea-area rent for a wind farm relieved?
Under Decree 103/2024/ND-CP, sea-area rent may be exempted or reduced case by case, at the levels set in the sea-area allocation decision.
3. What does the Phu My 3 equipment factory get?
Renewable-equipment manufacturing is encouraged: the 10%/15-year, four-year-exempt, nine-year-half-rate frame (if conditions are met), plus in-park land-rent relief.
4. Can two parallel projects pool their incentives?
No. Each project is its own basket; one project’s tax frame cannot cover the other, and two rate frames cannot stack on the same income.
5. What is the biggest non-tax risk?
For offshore wind: sea-area allocation, grid connection and power purchase; for the factory: deployment schedule. Tax incentives only pay off if the project runs on time.
This article has been quality-reviewed by the FLAW AI Legal Council