Appendix II of Decree 96/2026/ND-CP (effective from 31/3/2026) issues the new investment incentive sector list, replacing the previous incentive schedule. Correctly determining whether a project falls within the incentive list — and in which tier — directly affects preferential tax rates, land rental exemptions and other support. This article systematizes the new list structure and guides lookup and application.
Two-tier incentive structure
The new investment incentive list is organized into 2 tiers:
Tier 1 — especially incentivized sectors: 16 high-tech and strategic sectors, with the new addition of national important projects to the especially incentivized category. This is the highest incentive tier, for projects with technological breakthrough character or special significance to national socio-economic development.
Tier 2 — incentivized sectors: 23 sectors, alongside dual-use technology groups and agriculture with 13 sectors. This tier covers encouraged manufacturing, technology and agricultural fields, with lower incentives than the especially incentivized tier but still significant compared with the ordinary regime.
Enterprises must pinpoint exactly which tier their project falls into, because corporate income tax incentives, land rental exemptions and incentive durations differ between the two tiers.
Newly added sectors
Compared with the old list, Appendix II of Decree 96/2026 adds several notable sectors:
- Plant protection drugs — manufacturing of plant protection products;
- Environmental technology equipment — manufacturing of environmental treatment equipment and technology;
- Dual-use technology — technology serving both civilian and defense purposes;
- Science, technology, innovation and digital transformation training — human resource training for strategic fields;
- Wholesale markets — investment in wholesale market construction;
- Key national projects — works identified as key national projects.
Enterprises operating in these fields should review whether their projects now qualify for incentives under the new list — many projects previously outside the incentive scope may now be included.
New: provincial People’s Committees publish incentive areas down to commune level (Article 22)
Article 22 of Decree 96/2026 establishes a new mechanism: provincial-level People’s Committees publish the list of investment incentive areas down to the commune level. Previously, incentive-area identification often stopped at the district level or used general zones; commune-level publication now lets investors pinpoint exactly which area a project sits in and which incentive category applies.
In practice, enterprises must consult the publication document of the provincial People’s Committee where the project is located — this is the direct basis for area determination, not the general Decree list alone.
Incentive area classification
Decree 96/2026 classifies incentive areas as follows:
- Areas with difficult socio-economic conditions: including industrial parks and export processing zones;
- Areas with especially difficult socio-economic conditions: including economic zones, high-tech parks, free trade zones and international financial centers.
Area classification determines the specific incentive level enjoyed. The same sector placed in different areas may enjoy different incentives — so the area factor matters as much as the sector factor in investment planning.
Lookup guide: 3 steps to determine incentives
Step 1 — Look up the sector in Appendix II: match the project sector against the 2-tier incentive list (especially incentivized / incentivized). Note the sector names as used in Appendix II, as groupings may differ from ordinary business registration wording.
Step 2 — Determine the area per the provincial publication: consult the commune-level incentive-area publication of the province where the project sits, identifying whether the area is difficult or especially difficult.
Step 3 — Cross-check incentive conditions: combine the two steps with specific conditions on capital scale, technology and labour (if any) to determine the applicable tax incentives, land rental treatment and incentive duration.
Note: do not confuse the incentive list with the market-access list
Appendix II (investment incentives) and Appendix I (foreign investor market access: 23 closed sectors and 62 conditional sectors) are two independent lists serving different purposes. A project may both qualify for incentives (Appendix II) and have to meet market-access conditions (Appendix I) — FDI enterprises must check both. Likewise, the “62 sectors” figure in Appendix I is unrelated to the 62 sectors removed from the conditional business list under Law 24/2026/QH16.
FAQs
Do national important projects receive special incentives?
Yes. This is new in Appendix II of Decree 96/2026 — national important projects are added to the especially incentivized category.
Where do I look up incentive areas?
In the publication document of the provincial People’s Committee where the project is located (published to commune level under Article 22 of Decree 96/2026).
Which category do industrial parks fall into?
Industrial parks and export processing zones are areas with difficult socio-economic conditions; economic zones, high-tech parks, free trade zones and international financial centers are especially difficult areas.
Applicable legal sources
- Decree No. 96/2026/ND-CP — Appendix II (investment incentive list), Article 22 (commune-level incentive area publication) — effective from 31/3/2026.
- Investment Law No. 143/2025/QH15 — investment incentive framework — effective from 01/3/2026.
Need to review your investment plan under the new 2026 legal framework? Reach us via the Contact page of FLAT Law Firm.
The legal content of this article was reviewed by the FLAW AI Legal Council of FLAT and submitted to the owner for approval; it is not the opinion of a human lawyer and does not replace legal advice for specific cases.
For reference only; not legal advice.