Vietnam free zones

Vietnam free zones

invest in Vietnam free zone company

Since 2003, Healy Consultants Group PLC assist our Clients with setting up their business in Vietnam industrial zones (IZs) to benefit from reduced taxes and enjoy other numerous Government investment incentives. Vietnam industrial zones are ultimate spots for foreign entities looking to set up manufacturing companies in Southeast Asia with intent to distribute their products globally.

Benefits of setting up in a free zone

Vietnam currently runs over 250 industrial and export processing zones established throughout the country within key economic zones namely i) the Northern Vietnam Key Economic Region (NVKER), ii) Southern Key Economic Zone (SKEZ), iii) Central Vietnam Key Economic Region (CVKER) and iv) Mekong River Delta Economic Zone (MeKEZ). Please find below additional general information on their benefits.

  1. Our Clients setting up in the Vietnamese industrial zones will enjoy tax benefits including:
    • Reduced corporate income tax at the rate of 10% for up to 15 years;
    • 50% tax reduction on personal income for foreign and local employees;
    • Corporate income tax exemption for up to 4 years for approved projects;
    • 50% corporate income tax reduction for up to 9 years following expiry of exemption period.

  2. Other Government incentives enjoyed within the free zones include:
    • Reduced income tax rate of 10% for up to 30 years for high-tech projects;
    • Reduced tax rate of 10% for socialized projects like health and education applicable throughout the life of the project;
    • 5 years tax holiday for importation of raw materials for manufacturing within the IZs;
    • Exemption from VAT and excise tax for goods imported, processed or manufactured within the IZs.

  3. Trading companies will benefit from an industrial zone registration because:
    • Companies may benefit from tariff cuts on goods traded within the ASEAN region;
    • Government support in infrastructure development in areas with difficult socio-economic conditions;
    • Exemption from land rental fees and access to preferential grants from the government;
    • Access to abundant cheap labor with the current minimum wage ranging from US$96-US$138 per month.

The major industrial zones in Vietnam

  1. Vietnam Singapore industrial park (VSIP)
    • Established in 1996 by both Governments of Vietnam and Singapore, VSIP is a world-class industrial park that was named the “Best Industrial Developer 2013” by UK’s Euromoney magazine;
    • VSIP has projects located in both the Southern (Bac Ninh, Hai Phong) and Northern (Binh Duong) Vietnam;
    • VSIP’s success has been accredited to i) the attractive investment environment, ii) transparent and liberal management framework and iii) strategic positioning;
    • The industrial park welcomes investments in the areas of automotive components, electronics, pharmaceuticals and consumer goods.

  2. Phuoc Dong industrial park (PDIP)
    • PDIP is a modern and innovative, environmentally-oriented manufacturing and commercial park located between Go Dau and Trang Bang Districts;
    • The industrial zone welcomes investments from business sectors including logistics and supporting services, bio-fuel, construction materials, steel components and textile industry.

  3. Hiep Phuoc industrial park (HPIP)
    • Hiep Phuoc industrial park was established in 2007 and is located in Nha Be District, Ho Chi Minh City;
    • HPIP offers over 4,000ha of industrial land together with ready-built factory for rent;
    • This free zone has access to modern road and sea transportation infrastructure suitable for export activities;
    • The zone welcomes investments in sectors including leather processing, building materials, mechanics and chemicals.

  4. Dinh Vu – Cat Hai economic zone
    • Dinh Vu-Cat Hai economic zone is a key Vietnamese coastal free zone located in Hai Phong city, covering an area of 22,540ha;
    • This free zone offers businesses opportunities for investment in electronic and telecommunication, machinery, electrical and science equipment and chemical industries.

Table comparing different free zones in Vietnam

Summary at a glanceVSIP Binh DuongHPIPPDIPDinh Vu – Cat Hai
Average annual industrial space rent per 1000 sqmUS$26,500US$31,200US$35,000US$29,000
Company incorporation time4 weeks4 weeks4 weeks4 weeks
How long to open company bank account2-3 weeks2-3 weeks2-3 weeks2-3 weeks
Quality of utilitiesExcellentGoodGoodExcellent
Allowed to sign sales contracts with Vietnamese ClientsYesYesYesYes
Allowed to invoice Vietnamese ClientsYesYesYesYes
Corporate tax payable in VietnamDependent on activityDependent on activityDependent on activityDependent on activity
Corporate bank accountHSBCHSBCHSBCHSBC
Physical office space requiredYesYesYesYes
Industrial space availabilityManyLimitedManyMany
Allowed to import raw material?YesYesYesYes
Allowed to export goods?YesYesYesYes
Wholly foreign ownedYesYesYesYes
Can the entity hire expatriate staff in VietnamYesYesYesYes
Minimum number of directors1111
Minimum number of shareholders2222
Tax registration certificate requiredYesYesYesYes
Individual shareholders allowedYesYesYesYes
Corporate shareholders allowedYesYesYesYes
Public register of shareholders and directorsYesYesYesYes
LLC company allowedYesYesYesYes
Can apply for immigration visasYesYesYesYes
Annual audited financial statementsYesYesYesYes
Annual tax return to be submittedYesYesYesYes

Frequently asked questions

Contact us

For additional information on our free zone company registration services in Vietnam, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Mr. Simon Guidecoq, directly:
client relationship officer - Simon