Scenario: a foreign-invested garment maker running a plant in Binh Duong wants a second base in the north, nearer fresh labor pools and lower costs. Thai Nguyen is under review for abundant, competitively priced labor. But unlike electronics, garments are not high-tech or a supporting industry — so the “10%/15-year package” many investors hear about does not apply here. This article clarifies what a garments project in Thai Nguyen can actually stack.
Why garments get no “10%/15-year package”
Law 67/2025/QH15 on Corporate Income Tax (effective 1 October 2025) reserves the 10%-for-15-years rate (with a 4-year holiday and 50% reduction for 9 years) for high-tech, software, renewable-energy and supporting-industry projects. Garments — even large-scale export apparel — are not in these groups under the current lists. Say it plainly upfront to avoid false expectations: don’t apply the “electronics package” to the “garments equation.”
The general framework remains Investment Law 143/2025/QH15 (effective 1 March 2026, replacing Law 61/2020/QH14) and Decree 31/2021/ND-CP (sector and location incentive lists). For garments, the CIT incentive door — if any — opens by location, not sector.
A garments project in Thai Nguyen: the realistic layers
1. Location-based CIT incentives (the only door — verify). Some Thai Nguyen localities may sit on the difficult/extremely difficult area list in Decree 31/2021/ND-CP. If the project’s exact site is listed, location-based CIT incentives may be considered (a below-20% preferential rate for a defined period, with holiday/reduction as regulated). Checking the precise commune/district is the threshold condition — never assume.
2. Land-rent exemption/reduction. Decree 103/2024/ND-CP allows time-limited land-rent exemption/reduction for projects in encouraged sectors or preferential locations. A labor-intensive garments project in a preferential location may be considered — exact terms decided by the competent authority on the dossier, application required.
3. Import-duty incentives. Machinery and equipment imported to form fixed assets of an incentive-eligible project may be considered for import-duty exemption under the import/export duty law.
4. Labor-training support. Garments projects employing thousands may access local vocational-training and recruitment support programs — never automatic, register under each program.
Key note: from 1 October 2025, merely placing a plant in a Thai Nguyen industrial park does not automatically bring tax incentives — the location (or sector) conditions above must be met.
Application principle: one door, one rate
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. For garments in Thai Nguyen there is usually only one door (location), so choice conflicts rarely arise; but if the project meets additional conditions, still compare, choose the optimum and record it. Different kinds of incentives (CIT + land rent + import duty + training support) may be enjoyed together.
Garments and the global minimum tax: usually not a worry
The minimum top-up tax (Resolution 107/2023/QH15, Decree 236/2025/ND-CP, from 1 January 2024) applies only to groups above EUR 750 million in consolidated revenue. Most garment companies — even large ones in the sector — never touch that threshold, so the global minimum tax layer is usually not a concern as it is for multinational electronics groups. If the investor belongs to a multi-sector group above the threshold, modeling is still needed.
Checklist for a garments project in Thai Nguyen
- Check the preferential-location list in Decree 31/2021/ND-CP for the exact commune/district — the threshold condition.
- Don’t expect the “10%/15-year package” — garments are not high-tech/supporting industry.
- File for land-rent exemption/reduction under Decree 103/2024/ND-CP.
- Register for local labor-training and recruitment support programs.
- Record the incentive choice in the dossier under Articles 15, 16 of Investment Law 143/2025 if multiple tracks exist.
Frequently asked questions
1. Can a garments project get 10% for 15 years?
No. The 10%/15-year rate (with 4-year holiday and 50% reduction for 9 years) is for high-tech, software, renewable energy and supporting industries under Law 67/2025/QH15 — garments are not in these groups.
2. So what tax incentives can garments in Thai Nguyen get?
It depends on location: if the project site is on the difficult/extremely difficult area list (Decree 31/2021), location-based CIT incentives may be considered. The exact commune/district must be checked — no province-wide answer.
3. Is land-rent exemption available?
It may be considered under Decree 103/2024/ND-CP if the project qualifies (sector or location); exact terms are decided by the competent authority on the dossier after application.
4. Are there incentives for labor-intensive projects?
The law has incentive mechanisms tied to labor use in certain locations and cases; exact conditions sit in Investment Law 143/2025 and Decree 31/2021 — check the actual dossier, never automatic.
5. Should garments worry about the global minimum tax?
Usually not — the EUR 750 million consolidated-revenue threshold rarely touches garment companies. Model it only if the investor belongs to a multi-sector group above the threshold.
This article has been quality-reviewed by the FLAW AI Legal Council