The Regulations on the establishment, management and use of the Investment Support Fund

On 31/12/2024, the Government issued Decree No. 182/2024/ND-CP on the establishment, management and use of the Investment Support Fund.

The Decree No. 182/2024/ND-CP stipulates the establishment, management and use of the Investment Support Fund (hereinafter referred to as the Fund). This Decree applies to the Fund, enterprises established and operating under Vietnamese law that meet the criteria and conditions in this Decree and agencies, organizations and individuals related to the establishment, management and use of the Fund.

Accordingly, the Investment Support Fund is a national fund established by the Government, assigned to the Ministry of Planning and Investment for management; operating not for profit, not for the purpose of preserving the Fund's financial resources.

The Fund is under the Ministry of Planning and Investment, operating under a model similar to a public service unit, according to separate regulations on organization and operating mechanism stipulated in this Decree.

The Fund has legal status, uses its own seal, opens a budget account at the State Treasury to receive funds from the state budget and opens an account at the State Treasury, Commercial Bank for non-state budget sources.

The Fund has the function of managing and coordinating the Fund's financial resources to support the subjects specified in this Decree.

The Fund's tasks are as follows: Receive, manage and use the allocated state budget and other legal sources, according to the provisions of this Decree and regulations related to the Fund's operations; support enterprises according to the subjects, conditions, content and support levels stipulated in this Decree; implement the reporting, financial management, accounting, auditing and regulations related to the Fund's operations as prescribed in this Decree and relevant legal provisions.

The powers of the Fund: Organize activities in accordance with the objectives and scope of the Fund's operations; hire organizations, experts, scientists and other individuals to support the implementation of the Fund's tasks; the Fund's non-state budget financial resources are deposited at commercial banks or the State Treasury.

The Fund is exempt from corporate income tax on the Fund's revenues.

The Fund's organizational structure includes:

1. Fund Management Board.

2. Fund Executive Body.

The Fund's cost support items include:

- Human resource training and development costs;

- Research and development costs;

- Investment costs to create fixed assets;

- Cost of manufacturing high-tech products;

- Cost of investing in social infrastructure works;

- Other cases decided by the Government.

The subjects eligible for cost support include:

- High-tech enterprises;

- Enterprises with investment projects to manufacture high-tech products;

- Enterprises with high-tech application projects;

- Enterprises with investment projects in research and development centers.

The criteria and conditions for cost support:

- Enterprises eligible for cost support specified in Points a, b and c, Clause 2, Article 16 of this Decree must meet one of the following conditions:

+ High-tech enterprises with investment projects with a minimum capital scale of VND 12,000 billion or the project revenue of at least VND 20,000 billion/year;

+ Enterprises with high-tech product manufacturing investment projects, enterprises with high-tech application projects with a minimum project capital scale of VND 12,000 billion or achieving a project revenue of at least VND 20,000 billion/year;

+ High-tech enterprises, enterprises with high-tech product manufacturing investment projects, enterprises with high-tech application projects investing in the chip industry, semiconductor integrated circuits, artificial intelligence data centers with a minimum project capital scale of VND 6,000 billion or achieving a project revenue of at least VND 10,000 billion/year;

+ High-tech enterprises, enterprises with investment projects to produce high-tech products, enterprises with high-tech application projects in which high technology and high-tech products are on the List of high technologies and breakthrough high-tech products prioritized for research and development issued by the Prime Minister do not have to meet the criteria on capital scale or revenue prescribed in this Decree;

+ Enterprises with microchip design projects do not have to meet the criteria on capital scale or revenue prescribed in this Decree but must commit to employing at least 300 Vietnamese engineers and managers after 5 years of operation in Vietnam and annually supporting Vietnam to train at least 30 high-quality engineers in the field of microchip design.

- Enterprises eligible for support under the conditions on investment capital scale specified in Points a, b and c, Clause 1, Article 18 of this Decree must meet or commit to meeting the conditions for disbursement of investment capital as follows:

+ For investment projects granted Investment Registration Certificates, Investment Policy Approval Decisions, and Investor Approval Decisions from the effective date of this Decree, they must complete the disbursement of at least VND 12,000 billion within 05 years or VND 10,000 billion within 03 years from the date of first issuance of Investment Registration Certificates, Investment Policy Approval Decisions, and Investor Approval Decisions.

In the case of investment in the field of chip industry, semiconductor integrated circuits, and artificial intelligence data centers, they must complete the disbursement of at least VND 6,000 billion within 05 years or VND 4,000 billion within 03 years from the date of first issuance of Investment Policy Approval Decisions, Investor Approval Decisions, or Investment Registration Certificates.

+ For investment projects with registered investment capital that has not reached the minimum level of VND 12,000 billion before the effective date of this Decree and adjusted to increase investment capital from the effective date of the Decree to reach the minimum level of VND 12,000 billion or VND 6,000 billion for the chip industry, semiconductor integrated circuits, artificial intelligence data centers:

In case the capital increase adjustment level is less than VND 10,000 billion, the total investment capital of the entire project must be disbursed to reach at least VND 10,000 billion within 03 years from the date of adjustment of the Decision on approval of investment policy or Investment Registration Certificate.

In case the capital increase adjustment level is from VND 10,000 billion or more, the total investment capital of the entire project must be disbursed to reach at least VND 12,000 billion within 05 years from the date of adjustment of the Decision on approval of investment policy or Investment Registration Certificate.

For investment projects in the field of chip industry, semiconductor integrated circuits, artificial intelligence data centers, in case the capital increase adjustment is less than VND 4,000 billion, the total investment capital of the entire project must be disbursed at least VND 4,000 billion within 03 years from the date of adjustment of the Decision on approval of investment policy or Investment Registration Certificate; in case the capital increase adjustment is from VND 4,000 billion or more, the total investment capital of the entire project must be disbursed at least VND 6,000 billion within 05 years from the date of adjustment of the Decision on approval of investment policy or Investment Registration Certificate.

+ For investment projects that have registered a minimum investment capital of VND 12,000 billion or VND 6,000 billion for the chip industry, semiconductor integrated circuits, and artificial intelligence data centers as prescribed in the Investment Certificate, Investment Registration Certificate, Decision on Investment Policy Approval, Decision on Investor Approval or other documents of equivalent legal value issued for the first time or adjusted before the effective date of this Decree but have not yet completed disbursement, the disbursement completion period shall be implemented according to the issued documents or the minimum disbursement of VND 12,000 billion or VND 6,000 billion for the chip industry, semiconductor integrated circuits, and artificial intelligence data centers shall be completed within 05 years from the date of first issuance or adjustment of investment capital in the above documents at the most recent adjustment before the effective date of this Decree;

+ For investment projects with registered investment capital of at least VND 12,000 billion or VND 6,000 billion for the chip industry, semiconductor integrated circuits, artificial intelligence data centers as prescribed in the Investment Certificate, Investment Registration Certificate, Decision on approval of investment policy or other documents of equivalent legal value issued for the first time or adjusted before the effective date of this Decree and completed disbursement before the effective date of this Decree, they will be supported with the costs specified in Clause 1, Article 16 of this Decree.

- Enterprises eligible for support according to the revenue conditions specified in Points a, b and c, Clause 1, Article 18 of this Decree must meet the revenue conditions of high-tech enterprises, revenue of high-tech application projects, and high-tech product manufacturing projects in the fiscal year for which support is requested. The revenue of projects receiving support under the provisions of this Decree must be accounted for separately.

- Enterprises specified in Clause 2, Article 16 of this Decree must not have overdue tax debts or debts to the state budget at the time of application submission.

- The determination of high-tech enterprises, high-tech product manufacturing investment projects, and high-tech application projects shall be implemented in accordance with the provisions of the law on high technology and the provisions of this Decree.

- The enterprise's research and development center project specified in Point d, Clause 2, Article 16 must satisfy the following conditions:

+ The enterprise's research and development center is established and registered for operation for a science and technology organization under the law on science and technology;

+ To have a field of science and technology activities including research and development activities to create high technology in the List of high technologies prioritized for investment and development, high-tech products in the List of high-tech products encouraged for development issued together with the Prime Minister's Decision;

+ To have a minimum investment capital of VND 3,000 billion and must complete the disbursement of at least VND 1,000 billion within 03 years from the date of issuance of the Decision on approval of investment policy, the Decision on the investor approval, Investment Registration Certificate or equivalent legal documents.

This Decree takes effect from the date of signing and promulgation, applicable from the fiscal year 2024.