At the ministry’s November press conference held on December 1, Deputy Minister Bui Hoang Phuong emphasized that institutional improvement has been a top priority.

The ministry has essentially completed the documentation and procedures required to report to the Government and submit to the National Assembly five significant legislative proposals: the Digital Transformation Law, amendments to the Intellectual Property Law, the Technology Transfer Law, the High-Tech Law, and the Artificial Intelligence Law.

In addition, the ministry has issued 12 guiding circulars under its authority. Nguyen Anh Tuan, Head of Quality Management at the Department of Information Technology Industry, introduced six of these circulars, effective from late October to early November, describing them as synchronized measures to advance Vietnam's digital technology industry ecosystem.

Unprecedented land and corporate tax incentives

The most notable highlight - and a major stimulus for businesses - is the set of top-tier investment incentives. Under Circular 31/2025, projects involving the production of digital technology products and services designated as strategic - such as artificial intelligence, blockchain, cloud computing, and especially semiconductors (including consumer, AI, and IoT chips) - will be entirely exempt from land use and rental fees. This is the highest level of incentive ever offered in Vietnam.

In parallel, Circular 32/2025 applies similarly significant incentives for projects producing semiconductor materials (14 categories) and manufacturing equipment, machinery, and tools (18 categories) used as inputs for the semiconductor industry. This aims to build a fully integrated and comprehensive semiconductor ecosystem.

Record corporate income tax relief

Circular 33/2025 outlines record-setting corporate income tax (CIT) incentives for electronic equipment manufacturers. These include a 4-year CIT exemption, followed by a 50% tax reduction for the next 9 years. For projects exceeding VND 6 trillion (about USD 250 million), the Prime Minister may extend the exemption period up to 1.5 times the standard duration.

Enterprises must meet at least one of four criteria to qualify:

1.     Utilize semiconductor chips that are designed, produced, packaged, or tested in Vietnam.

2.     Fulfill requirements in research, technology development, and innovation, including operating an R&D department with at least 10 personnel holding university degrees (50% must be Vietnamese citizens), and allocate a minimum of 2% of their average net revenue to R&D activities.

3.     Own the design rights of the products manufactured in Vietnam.

4.     Involve at least 30% Vietnamese enterprises in the supply chain and commit to transferring technology to domestic entities or businesses.

Easing equipment imports to boost R&D

To support production and R&D, Circular 30/2025 amends rules on the import of used machinery. Notably, the age limit for equipment used in semiconductor production, packaging, and testing has been extended to 20 years - double the previous 10-year cap set by Decision 18/2019.

In addition, equipment used for digital tech training and product development will not be subject to strict efficiency or age requirements (e.g., 85% remaining capacity or design life).

Circular 26/2025 also relaxes restrictions by allowing the import of items normally banned, provided they serve special purposes - such as operating production lines, directly supporting IT-based software development, business process outsourcing, and data processing for foreign clients. The regulation also permits refurbished components to be imported as replacements or for repairs when those parts are no longer manufactured.

Further, it allows the processing of banned goods for foreign partners intended for export, thereby promoting outsourcing services.

Finally, Circular 34/2025 defines the digital technology products and services eligible for procurement preferences in government-funded projects.

Hardware products receive preferential treatment if they meet two conditions: designed and branded by Vietnamese enterprises. For software, preference is given to those designed and developed by Vietnamese individuals or organizations, or based on open-source code owned by Vietnamese entities.

Du Lam