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Policies to develop the digital technology industry proposed
The Ministry of Information and Communications has released a draft Law on Digital Technology Industry, proposing outstanding policies to promote the development of the digital technology industry into an economic sector that contributes greatly to the country’s economy.
The draft Law on Digital Technology Industry sets out special policies to develop semiconductor industry__Photo: VNA

The Ministry of Information and Communications has released a draft Law on Digital Technology Industry, proposing outstanding policies to promote the development of the digital technology industry into an economic sector that contributes greatly to the country’s economy.

With 90 articles arranged in six chapters, the draft law also introduces special policies to develop semiconductor industry, enhance the brand of Vietnam’s digital technology industry and develop domestic and foreign markets, as well as investing, purchasing and selecting suppliers of digital technology products and services using State budget capital.

Under the draft, the State would provide partial financial support when organizations and businesses participate, with a minimum support level of 30 percent and a maximum of no more than 80 percent of the total cost.

Digital technology product manufacturing activities in which at least 30 percent of Vietnamese enterprises out of the total number of enterprises participate and perform assembly contracts, supply of components, raw materials and domestic production services to produce products and at least 30 percent of the product cost is created by Vietnamese enterprises, would be entitled to preferential corporate income tax rate of 10 percent for a period of 15 years.

Regarding support for digital technology businesses, the draft specifies that there would be policies to support business development, incentives for digital technology industry activities, credit policies for digital technology businesses and financial sources for development of the digital technology industry.

Noteworthily, enterprises with projects on manufacture of digital technology products would be entitled to borrow investment credit from the State according to the law on investment credit and receive a loan at preferential interest rates from the Vietnam Environmental Protection Fund for the project’s pollution treatment and environmental protection items.

Digital technology product production projects would be exempted or reduced land use fees and land rent according to the land law. Such projects using land would be eligible for compensation, support and resettlement funds of investment projects at the highest level according to the land law.

In addition, large-scale projects of special nature would enjoy special investment incentive policies on corporate income tax and others according to the investment law, corporate income tax law and other relevant legal regulations. Costs of such projects would be included in deductible expenses to determine taxable income for R&D activities, which is 150 percent of the actual costs of this activity when calculating corporate income tax.- (VLLF)

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