Providing targeted support is key to achieving the best results.

The draft Decree on the establishment, management, and use of the Investment Support Fund has just been released by the Ministry of Planning and Investment for public comment. One of the issues receiving significant attention from the business community regarding this draft is the scope and eligible recipients of the support.

According to the draft, eligible recipients of support from the Investment Support Fund are businesses with investment projects in the production of high-tech products; high-tech businesses; and businesses with investment projects in R&D (research and development) centers. Businesses must also meet one of the following criteria: achieving an investment capital of over VND 12,000 billion, achieving annual revenue of over VND 20,000 billion, or completing a minimum disbursement of VND 12,000 billion within 3 years. Deputy Minister of Planning and Investment Nguyen Thi Bich Ngoc affirmed that there will be no discrimination; all businesses, domestic or foreign, operating or newly investing, will receive support if they meet the criteria, not just those affected by the application of the global minimum tax rate as stipulated by the OECD. Once approved, the policies will be applied stably and long-term.

After reviewing the draft regulations, Virginia B. Foote, Vice President of the American Chamber of Commerce in Vietnam (AmCham), commented that supporting only high-tech businesses is too narrow. Furthermore, the criterion of "businesses having an R&D center investment project" to qualify for support is "not clear enough," as some businesses invest in R&D activities but do not build a separate R&D center.

Representatives of businesses with multiple subsidiaries and large-scale investments in different locations also argued that support decisions should be based on the total investment scale of the entire group, rather than considering each subsidiary or project separately. Mr. Hong Sun, President of the Korean Chamber of Commerce in Vietnam (KoCham), suggested that the eligibility criteria for support are still limited and should be expanded and relaxed to allow more businesses to receive assistance. There were also concerns from a representative of a biotechnology company regarding the regulation that "projects must disburse a minimum of 12,000 billion VND within 3 years." For this sector, because it involves both investment and research, like "testing the waters before crossing the river," businesses may need more than 3 years to fully disburse the 12,000 billion VND... There is also a basis for concern among multinational corporations that their "parent" country might interpret the support provided to businesses in Vietnam as a form of tax reduction and continue to collect additional taxes to reach the minimum 15%...

It's understandable that businesses always want more support under easier conditions. In fact, Vietnam has never implemented a policy of direct financial support, and while the OECD has established a global minimum tax policy, it hasn't yet provided specific guidelines. Therefore, during the policy-making process, it's necessary to consult with the OECD to ensure that the principles are not violated.

In summary, when regulating the eligibility criteria, support levels, and implementation roadmaps, careful consideration is necessary, especially given the limited budget. Only by ensuring transparency, accountability, and feasibility can a stable and highly competitive investment environment be created, encouraging investors to invest in long-term production and business in Vietnam.

ANH THU

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