Scenario: a wind investor has scouted both Ba Ria-Vung Tau and Ninh Thuan for a 300 MW wind farm. Its adviser claims Ninh Thuan offers the bigger basket by stacking sector and location pillars. Is that legally grounded?
Why Ninh Thuan stacks hardest for renewable energy
The Law on Investment 143/2025/QH15 (effective 1 March 2026, replacing Law 61/2020/QH14) provides 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.
Renewable energy sits on the encouraged-sector list in Decree 31/2021/ND-CP — its schedules remain citable until replaced. What makes Ninh Thuan special: many of its districts are classified as difficult or especially difficult areas. A wind or solar project in Ninh Thuan therefore touches two pillars at once — encouraged sector and difficult location — which developed Ba Ria-Vung Tau cannot offer.
The basket of a Ninh Thuan wind farm
For a qualifying project, the basket includes the sector tax frame: 10%/15 years, four-year exemption and 50% reduction for nine years on generation income; plus land-rent and sea-area-rent relief under Decree 103/2024/ND-CP on difficult-area terms — typically longer than in developed areas. Projects in especially difficult areas may also access additional local investment support.
But “two pillars” does not mean “double tax incentives.” Article 15 of the Law on Investment bars two same-type tax incentives at the same time: the investor cannot apply both the sector and the location tax frames to the same income stream. Correct practice is to compare the tax frames (sector, location), take one best frame, then layer the different types: tax, land/sea-area rent, support.
A framework illustration of tier selection
Suppose a 300 MW wind farm in a difficult Ninh Thuan district meets both encouraged-sector and difficult-area conditions. Step one: list the qualifying tax frames — the sector frame (10%/15 years, four-year holiday, 50% reduction for nine years) and the location frame. Step two: pick one best tax frame for generation income. Step three: add land/sea-area rent relief on difficult-area terms plus related support.
The result is the fullest basket in the renewable cluster: preferential tax on generation income plus long-term land and sea-area rent relief — unavailable to the same sector project in a developed area. All figures are conditional legal frames, not absolute commitments absent full project details.
Checklist for a Ninh Thuan project
Verify the host district is on the current difficult/especially-difficult list; map encouraged-sector conditions under Appendix II of Decree 31/2021; clarify land and sea-area rent under Decree 103/2024 on location terms; record incentives in the Investment Registration Certificate; self-declare at annual finalisation and maintain conditions throughout.
1. Why does Ninh Thuan stack better than Ba Ria-Vung Tau?
The sector pillar (renewable energy) is identical, but Ninh Thuan adds a difficult/especially-difficult location pillar while Ba Ria-Vung Tau is developed.
2. Do two pillars double the tax incentives?
No. Article 15 of the Law on Investment bars two same-type tax incentives at the same time; the investor takes one best tax frame per income stream.
3. How long is land-rent relief in a difficult area?
Under Decree 103/2024/ND-CP, relief terms in difficult and especially difficult areas are typically longer than in developed areas; specifics follow the land allocation decision.
4. Does rooftop solar get the same incentives as a wind farm?
Not automatically. Each model must meet encouraged-sector, scale and technology conditions; small rooftop systems rarely qualify like large generation projects.
5. If the power plan is full, do new projects still get incentives?
Tax incentives attach to sector and location conditions, not the power plan; but a project must sit within the power development plan to be licensed.
This article has been quality-reviewed by the FLAW AI Legal Council