Key Takeaways

• On January 1, 2024, Vietnam raised the effective corporate income tax rate for large multinational corporations (MNCs) to 15% in accordance with the OECD’s global minimum tax (GMT) framework. With the new rate, approximately 120 foreign companies in Vietnam will face a steep increase in tax payments.
• The GMT framework significantly affects the country's ability to provide tax incentives. This especially impacts corporations in Vietnam’s special incentive areas—which include “economic zones” (EZs) and “industrial parks” (IPs)—as they utilize reduced tax rates and tax holidays as central tools for attracting foreign direct investment (FDI).
• EZ and IP programs in Vietnam are already undergoing a series of challenges and reforms. On February 1, 2024, Vietnam introduced the Regulation on High-Tech Parks, marking a major step in the implementation of the comprehensive reform of the EZ and IP framework initially adopted in 2022. Properly leveraging the non-tax features of the new framework can enhance the performance of EZs and IPs, fostering an environment favorable to innovative businesses and facilitating high-quality investments. 
• The interplay of these new laws on tax incentives and investment assistance presents a critical opportunity for MNCs in Vietnam to influence and benefit from the next stage of Vietnam’s special incentive zones.

Read the full analysis below. 

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About ASG

Albright Stonebridge Group (ASG), part of Dentons Global Advisors, is the premier global strategy and commercial diplomacy firm. As a multidisciplinary advisory firm, we help clients understand and successfully navigate the intersection of public, private, and social sectors in international markets. ASG's worldwide team has served clients in more than 120 countries. 

For additional information or to arrange a follow-up conversation, please email Michael Castle-Miller, SEZ Practice Lead.