Incentives for Developing Infrastructure at Vietnam’s Industrial Zones

Published 11 October 2019 by Dezan Shira & Associates

In August, the Ministry of Finance issued Circular No. 43/2019/TT-BTC (“the Circular”), passing new guidelines on incentives for investments in at industrial or economic zones stated in Decree No. 82/2018 / ND-CP. The reform took effect on August 26, 2019.

The Circular provides details on tax incentives for enterprises that have investment projects in Vietnam’s industrial and economic zones, encouraging them to make investments that improve the quality of life around industrial zones.

Specifically, the new incentives apply to the construction, operation, or renting of condominium apartments as well as investment into infrastructure that can develop like cultural, medical, and sports centres for employees of these industrial and economic and zones.

  • Vietnam’s industrial zones have played a pivotal role in attracting foreign investments and driving economic growth in the country.
  • However, the rapid increase of investment in Industrial Zones caused a shortage of housing for workers that have relocated.
  • The Ministry of Finance subsequently revised incentives for enterprises investing in housing and other infrastructure for workers at Industrial Zones.
  • Businesspeople that invest in housing and related infrastructure can now reduce their taxable income, increasing the benefit of developing infrastructure at Industrial Zones.

This is an article appearing in Vietnam Briefing, a subsidiary of Dezan Shira & Associates. For the latest economic, regulatory and business news from Vietnam, visit