A Chinese investor wants to open an electronics component factory in Vietnam — where to apply for investment incentives, and what can the project get? This guide answers the title question directly: the authority map (which agency receives the dossier), the conditions for incentive recognition, and the incentive forms under the law in force as of October 2026.
1. Do electronics components qualify for investment incentives?
Yes. Electronics component manufacturing is an incentivized business line:
- Appendix II of Decree 96/2026/ND-CP (issued 31/3/2026, effective 31/3/2026, guiding the 2025 Investment Law) lists the “science, technology, electronics, mechanics…” group — including manufacturing of electronic accessories, components and sub-assemblies — among incentivized and specially incentivized lines;
- Decree 111/2015/ND-CP on supporting industry development (still in force): electronic components are supporting industry products.
Distinguish the two tiers: investment incentives and special investment incentives. Projects meeting high-tech or strategic-technology criteria (under the incentive articles of the 2025 Investment Law) may qualify for the higher special tier — the two must not be conflated.
2. Where to apply: Management Board or Department of Finance?
A Chinese investor is a foreign investor and must therefore complete the Investment Registration Certificate (IRC) procedure (Article 26 of the Investment Law 2025 — No. 143/2025/QH15, passed 11/12/2025, effective 01/3/2026, replacing Investment Law 61/2020). Investment incentives are recorded in the IRC or in the investment policy approval decision.
IRC issuance authority (Article 27, Investment Law 2025):
- Projects inside industrial parks, export processing zones, hi-tech parks or economic zones → the zone Management Board;
- Projects outside these zones → the Department of Finance (after the 2025 apparatus rearrangement, investment registration functions moved from the Department of Planning and Investment to the Department of Finance — verify the exact agency name at the project locality).
In short: inside an industrial park, deal with the Management Board; outside, deal with the Department of Finance. Filing with the wrong agency is a common cause of dossiers bouncing around.
3. Incentive forms: tax, land, depreciation and the Investment Support Fund
- CIT incentives: under Articles 13–15 of the CIT Law 2025 (No. 67/2025/QH15, effective 01/10/2025, applicable from tax year 2025) and guiding Decree 320/2025/ND-CP;
- Import duty exemption: goods forming fixed assets of incentivized projects; imported raw materials, supplies and components for production (Article 16 of the Export and Import Duties Law 107/2016/QH13);
- Land rental exemption/reduction under land law;
- Accelerated depreciation of fixed assets;
- Investment Support Fund (Investment Law 2025) for large-scale high-tech projects.
A specific incentive level (e.g. “10% tax for 15 years”) can only be determined after matching the exact case of the project — the applicable level depends on which conditions the project satisfies and how they are recorded in the IRC.
4. Market access conditions for Chinese investors
Under Appendix I of Decree 96/2026/ND-CP on foreign investor market access: electronics component manufacturing is not among the 23 lines closed to market access and not among the 62 conditional lines. Chinese investors are therefore treated like domestic investors when establishing an economic organization to implement the project (Articles 8 and 19, Investment Law 2025).
Eligible projects inside industrial parks, export processing zones or hi-tech parks may also opt for the special investment procedure (Article 28, Investment Law 2025): exemption from investment policy approval, technology appraisal, environmental impact assessment, construction permits… when conditions are met — significantly shortening deployment time.
5. Four points not to forget
- Incentives are not automatic: conditions must be satisfied and recorded in the IRC; enjoying incentives without meeting conditions leads to retroactive collection and penalties;
- Dual incentives: a project in an industrial park enjoys incentives by location (the park is an incentivized area) and possibly by business line — the highest applicable level applies when multiple conditions are met;
- Law 24/2026/QH16 (amending the Investment Law, cutting conditional business lines) takes effect 01/3/2027 — not applicable as of October 2026, so it does not enter current conditions;
- Do not cite Investment Law 2020 (61/2020/QH14) for new procedures — it expired on 01/3/2026.
6. Overall 4-step sequence
- Determine the project location (inside or outside an industrial park) → identify the correct receiving agency: Management Board or Department of Finance;
- Prepare the IRC application dossier, proposing the investment incentive content;
- Receive the IRC recording the incentives;
- Implement the project and complete tax and land incentive procedures in each area.
See also: IRC issuance timeline in Vietnam
Contact us
FLAT Law Firm advises Chinese investors on electronics component projects in Vietnam: site selection, IRC application, incentive structuring and post-licensing compliance. Contact: contact us.
This article is for general information only and does not constitute legal advice for your specific situation.
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