Enterprises located in concentrated digital technology zones will receive incentives related to taxation and land use, while high-quality human resources will have their own preferential policies.

"A concentrated digital technology zone is not only a place where enterprises operate, but also a place where value is created, where knowledge is nurtured, and where innovation is strongly promoted," said Nguyen Khac Lich, Director of the Department of Information Technology Industry under the Ministry of Science and Technology, at a workshop held on December 5 at Quang Trung Software Park (Ho Chi Minh City).

Mr. Nguyen Khac Lich, Director of the Department of Information Technology Industry - Ministry of Science and Technology. Photo: Bao Lam

According to him, Vietnam currently has eight concentrated digital technology zones established in Hanoi, Ho Chi Minh City, Da Nang, and Can Tho, covering a total land area of 2.588 million square meters—more than ten times larger than in 2013. These zones host over 630 digital technology enterprises and have achieved an average growth rate of 20%. They employ 42,450 high-quality workers, double the number from 12 years ago, with labor productivity and income significantly higher than the national average.

According to the Director, Resolution 57 identifies the development of concentrated digital technology zones as one of the key solutions to promote science, technology, innovation, and national digital transformation. The Law on Digital Technology Industry, which will take effect next year, will address existing shortcomings of the concentrated information technology park model by introducing incentive mechanisms, more flexible institutional frameworks, sandbox testing environments, and shared digital infrastructure such as cloud services, data centers, chip testing laboratories, and supercomputers for AI training.

"This is not just a policy, but a strong message: Vietnam is ready to move fast and lead in the digital technology era," he said.

The Director also emphasized that developing concentrated digital technology zones is not about industrial real estate development, but about building an ecosystem where all enterprises—from startups to global corporations—can innovate, experiment, grow, and expand globally. In these zones, enterprises can access optimized digital infrastructure, enjoy special incentives, test technologies in sandbox environments, and work in an innovation-driven setting. However, appropriate mechanisms are still needed to promote new models and help the country make breakthroughs in the coming years.

Mr. Nguyen Anh Tuan, Acting Deputy Director of the Department of Information Technology Industry, said that the amended Corporate Income Tax Law stipulates that digital technology projects within these zones are eligible for a 10% tax rate for 15 years, with full exemption for the first four years and a 50% reduction for the following nine years. For large-scale projects valued at VND 6,000 billion or more, or semiconductor manufacturing projects, the incentive period may be extended by up to 1.5 times. Notably, all digital technology enterprises in the zones are entitled to incentives without having to undergo the software production certification process previously required under Circular 13.

Mr. Nguyen Anh Tuan - Department of Information Technology Industry - Ministry of Science and Technology. Photo: Bao Lam

Regarding land policies, Decree 230 allows for full exemption from land-use fees for projects developing digital technology zones and for enterprises operating within them. Enterprises producing key technology products or semiconductors are also exempt from land-use fees even when investing outside these zones. This represents one of the largest incentive packages ever applied to the technology sector.

In the area of import and export, enterprises in the zones are exempt from import duties on raw materials and components for five years, exempt from taxes on goods used to form fixed assets, and permitted to import used machinery for research and training purposes provided environmental standards are met. For the first time, semiconductor enterprises and key digital technology enterprises are classified as "priority enterprises" in customs procedures, helping to shorten customs clearance times.

Human resource policies are also designed to attract and retain experts, including exemptions from work permits for high-quality digital technology professionals, visa extensions of up to five years, and applicability to spouses and children. Personnel working in digital technology zones are exempt from personal income tax for the first five years. In the public sector, high-quality personnel are exempt from certain recruitment examination requirements to encourage technology experts to participate in state management.

Local authorities are also permitted to provide direct support to enterprises in the zones, including support for human resource training, housing, transportation, salaries for experts, and prototype production. For large projects such as semiconductors, cybersecurity centers, or key digital technology initiatives, enterprises may receive direct financial support from funds under Decree 182 for fixed asset investment or human resource training.

A notable new requirement is that localities must develop expert housing in parallel with digital technology zones. Expert housing projects are also eligible for land incentives and are encouraged to be implemented by the same investors responsible for zone infrastructure. "A digital technology zone truly comes alive only when experts live there," Mr. Tuan emphasized.

However, he also noted that not all investors or projects located within concentrated digital technology zones are automatically entitled to incentives; instead, they must meet certain criteria.

Adding to this point, Mr. Lich said that if a project has already received previous incentives, it may continue using those incentives or switch to new ones if eligible, depending on specific circumstances. He stressed that "only high-quality digital technology human resources are eligible for personal income tax exemptions; not everyone working in the zone is automatically entitled to this incentive." The criteria are expected to be announced soon in the form of a handbook for individuals and enterprises to reference.

Additionally, Mr. Tuan outlined other characteristics and incentives of a concentrated technology zone, such as the requirement for synchronized digital infrastructure, including next-generation telecommunications networks (5G, 6G), information security systems, stable power supply, and water systems meeting national standards. "It is impossible to talk about semiconductor manufacturing or data centers if electricity and water are not continuously guaranteed," he said.

The governance model is also defined as a mandatory criterion. Digital technology zones must implement smart digital governance systems and a "one-stop on-site" mechanism. This is the key to reducing compliance costs for enterprises, ensuring that "enterprises entering the zone no longer have to knock on the doors of individual departments; all procedures must be handled within the zone and maximally digitized."

Under the Law on Digital Technology Industry, the authority to establish and recognize concentrated digital technology zones will be transferred from the Prime Minister to provincial People's Committees. Oversight mechanisms will also be stricter, requiring local authorities to review zone operations every three years. If a zone fails to meet criteria, it may be suspended for six months for remediation; if improvements are not made, its recognition may be revoked. At the same time, infrastructure projects must be completed within three years after land allocation to avoid waste of resources.

Bao Lam