What's Happening?
The Ministry of Science and Technology (MoST) has drafted criteria for electronic equipment manufacturers to qualify for corporate income tax incentives. The draft specifies that companies must derive
at least 70% of their revenue from electronic equipment manufacturing. Large enterprises must have a research and development department with at least 10 employees holding university degrees, including five Vietnamese nationals. For small and medium-sized enterprises, the requirement is three employees with university degrees, including one Vietnamese national. Foreign-invested enterprises must meet these criteria or fulfill additional conditions, such as technology transfer to Vietnamese firms or involving Vietnamese companies in the value chain.
Why It's Important?
The proposed criteria for tax incentives aim to boost the electronic equipment manufacturing sector by encouraging investment and innovation. By setting specific requirements for research and development and local involvement, the MoST seeks to enhance the competitiveness of Vietnamese enterprises and foster technology transfer. This initiative could attract foreign investment and stimulate economic growth, while also promoting the development of a skilled workforce in the technology sector. The draft is currently open for public feedback, indicating a collaborative approach to policy-making.
