Scenario: a Taiwanese electronics investor wants a plant at Ho Chi Minh City’s southern gateway to serve both the domestic market and exports via Cat Lai and Cai Mep ports. Long An was chosen for its proximity to HCMC at lower land costs. The park developer advertises that “projects in the park enjoy investment incentives” — but since 1 October 2025, that claim no longer holds for tax incentives. The investor needs precision: which incentives does an electronics project in Long An actually get, and on what conditions.
The mindset trap: “inside the park means incentives”
Before 1 October 2025, many investors assumed a plant inside an industrial park earned tax incentives. Law 67/2025/QH15 on Corporate Income Tax (effective 1 October 2025) changed the game: park location is no longer a sufficient condition — the project must be in an encouraged sector or a preferential location per the lists in Decree 31/2021/ND-CP. A park developer’s incentive advertising must be verified against statute, not brochures.
The full framework: Investment Law 143/2025/QH15 (effective 1 March 2026, replacing Law 61/2020/QH14) sets incentive principles; Law 67/2025/QH15 sets the rates — standard 20%; 10% for 15 years for high-tech and supporting industries (with a 4-year holiday and 50% reduction for 9 years in the maximum package).
An electronics project in Long An: the incentive layers
1. Sector-based CIT incentives. Electronic components may fall into high-tech or supporting-industry groups — eligible for 10%/15 years with a 4-year holiday and 50% reduction for 9 years if the list and scale conditions in Decree 31/2021/ND-CP are met. This is the most valuable layer; dossiers must evidence the specific business lines, not just a generic “electronics manufacturing.”
2. Location incentives (verify). Some Long An localities may sit on the difficult-area list in Decree 31/2021/ND-CP. If the project’s exact site is listed, location-based incentives apply — independently of sector incentives. Check the precise commune/district; never infer from the province name.
3. Land-rent exemption/reduction. Decree 103/2024/ND-CP allows time-limited land-rent exemption/reduction for projects in encouraged sectors or preferential locations. Exact terms are decided by the competent authority on the dossier — application required.
4. Import-duty incentives and other support. Goods forming fixed assets of an incentive-eligible project may be considered for import-duty exemption; training and infrastructure support follow current programs.
The most-favorable-rate rule
Investment Law 143/2025/QH15 (Articles 15, 16): no two incentives of the same kind at the same time — the investor chooses the most favorable. If a Long An project meets both sector and location conditions, compare the present value of each option per phase and record the choice in the incentive registration dossier. Different kinds of incentives (CIT + land rent + import duty) may be enjoyed together.
Global minimum tax and the Long An equation
For groups above EUR 750 million in consolidated revenue, Resolution 107/2023/QH15 and Decree 236/2025/ND-CP apply Vietnam’s minimum top-up tax from 1 January 2024 — a 10% incentive rate may trigger additional payment to reach the 15% minimum effective rate. When this layer flattens paper incentive gaps, Long An’s real edge lies in lower land costs than HCMC, proximity to seaports and the southern consumer market — factors the global minimum tax cannot touch.
Checklist for an electronics project in Long An
- Map exact business lines against the encouraged-sector list in Decree 31/2021/ND-CP — don’t trust park brochures.
- Check the preferential-location list for the precise commune/district.
- Compare incentive options and choose the most favorable under Articles 15, 16 of Investment Law 143/2025.
- File for land-rent exemption/reduction under Decree 103/2024/ND-CP.
- Model the global minimum tax if the group is above EUR 750 million.
Frequently asked questions
1. Does a project in a Long An industrial park automatically get tax incentives?
No. From 1 October 2025, park location is no longer sufficient under Law 67/2025/QH15; the project must be in an encouraged sector or preferential location per Decree 31/2021/ND-CP.
2. Can we trust a park developer’s “incentive” claims?
Only when proven by statute applied to the project’s exact sector and site. Advertising in brochures has no legal force for incentive eligibility.
3. Which electronics projects get 10% for 15 years?
High-tech and supporting-industry projects meeting list and scale conditions; with a 4-year holiday and 50% reduction for 9 years in the maximum package. Map the exact business lines.
4. Can sector and location incentives both apply?
A project may be considered under both tracks, yet only one same-kind incentive applies at a time — the most favorable one under Articles 15, 16 of Investment Law 143/2025/QH15.
5. What is Long An’s edge beyond tax incentives?
Lower land costs than HCMC, proximity to Cat Lai and Cai Mep ports and the southern consumer market, plus Mekong Delta connectivity — real advantages undiminished by the global minimum tax.
This article has been quality-reviewed by the FLAW AI Legal Council