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| Manufacturing smart phones at VinSmart Factory in Hanoi's Hoa Lac Hi-Tech Park__Photo: Anh Tuan/VNA |
The Minister of Science and Technology has recently issued Circular 33/2025/TT-BKHCN, specifying the criteria for enterprises implementing electronic equipment manufacturing projects to enjoy corporate income tax incentives.
From January 1, 2026, enterprises implementing electronic equipment manufacturing projects will be entitled to corporate income tax incentives if they meet one of the following four criteria.
The first criterion is the use of semiconductor chip products designed, manufactured or packaged and tested in Vietnam in such projects’ products. Enterprises are regarded as satisfying this criterion if they:
. Use semiconductor chip products whose designs are owned by a Vietnamese organization, enterprise or citizen. The chip design ownership is established through self-designing, hiring of Vietnamese designers, or purchase of designs from other entities.
. Use semiconductor chip products manufactured or packaged and tested at Vietnam-based factories or production lines.
The criterion on scientific research, technological development and innovation is the second one which requires enterprises to satisfy the following two conditions simultaneously:
. Having a scientific research, technological development and innovation department with at least 10 employees possessing university degrees or higher degrees. At least half of these employees must be Vietnamese citizens.
. Having a total expenditure for scientific research, technological development and innovation equal at least to two percent of the average net turnover in the last three consecutive fiscal years or at least VND 200 billion/year in the last three consecutive fiscal years.
The decree states that small- and medium-sized enterprises (SMEs) as specified by the Law on Support for Small- and Medium-Sized Enterprises are not required to have a scientific research, technological development and innovation department. However, each SME must have at least 3 employees possessing a university degree or higher degree to carry out these activities and ensure that half of them are Vietnamese citizens.
According to the third criterion specified in this Decree, product design of the Vietnam-based electronic equipment manufacturing project must belong to the enterprise. The product design includes specifications, system architecture, detailed design, schematic diagram, printed circuit layout, and related technical documents.
The last criterion on the development of domestic supply chain and technology transfer specifies that at least 30 percent of the enterprises participating in assembly and supply of materials and components and provision of services for the electronic equipment manufacturing project are Vietnamese enterprises. This criterion also requires the enterprise to transfer technology to at least one Vietnamese organization or enterprise within five years from the date it is granted the investment registration certificate or investment policy approval decision.- (VLLF)
