Vietnam Creates Investment Fund to Boost Foreign Investment

Vietnam Creates Investment Fund to Boost Foreign Investment

The Vietnamese government is in the final stages of finalising plans to create a fund with the goals of luring international investment and ensuring the country’s continued competitiveness. On or before Friday, June 29, the draft will be sent to the federal government.

A significant portion of Vietnam’s export revenue comes from businesses that have received foreign investment; these businesses are vital to the production processes of multinational corporations like Intel, Foxconn, and Samsung. Following last year’s approval of a 15% worldwide minimum corporate tax rate by Vietnam’s parliament, multinationals eagerly await the proposed fund and incentives.

To stay competitive in the face of fierce competition globally and ever-changing world markets, the Vietnam Fund for Investment Support uses funds allocated from the state budget and business tax revenues. From 2021–2025, Vietnam hopes to attract $30–40 billion in yearly foreign investment; from 2026–2030, the objective rises to $40–50 billion. The $39.4 billion in FDI received last year was a 34.5% increase from the previous year.

Eligible investments include high-tech projects worth at least 12 trillion dong ($471.51 million) with annual revenues of at least 20 trillion dong, AI and semiconductor projects worth at least 6 trillion dong, and R&D centres worth at least 3 trillion dong.