Researchers at the Ho Chi Minh City University of Technologies. (Photo: VNA) The VCCI said as Vietnam is to impose additional corporate incometax under the global minimum tax, it would be a good time to upgrade thecountry's investment support policies as well, saying they would provide bothchallenges and opportunities for the Southeast Asian country.
According to the VCCI, investment support policies offerflexibility, allowing the state to select the target, form and content ofsupport to guide enterprises in investment activities, aimed at producingpositive outcomes for society. Therefore, while designing investment supportpolicies, it is essential to choose options that can realise more than oneobjective, those that support business enterprises and produce positive,long-term impacts on Vietnam's socio-economic development.
The chamber said the current 50% limit on R&D costs for FDIbusinesses should be reviewed and reconsidered. The VCCI advised that thesupport level could go up as high as 75%, given that the FDI would employ asufficient number of local talents for the job. In addition to the spill-overeffect on the economy, the new incentive would help encourage closercollaboration among businesses and research institutions, enhancing theircapabilities and contributing to the scientific and technological developmentof the country.
In addition, the chamber recommended adding criteria concerningthe nationality of directly employed researchers to promote the recruitment ofVietnamese researchers and scientists to conduct R&D activities.
Regarding support for fixed asset investment costs, up to a 40%maximum, both movable and immovable assets must be made available to high-techsector R&D for at least three years. Meanwhile, the chamber suggested amore detailed classification of support levels based on asset types with a clearpreference for immovable assets.
"Such policies help incentivise businesses to make and spendin Vietnam, instead of moving production elsewhere," said the chamber in astatement./.
VNA
