Ministry proposes full land-rent exemption for strategic technology firms

Ministry proposes full land-rent exemption for strategic technology firms

The Ministry of Science and Technology has proposed full land-rent exemptions for strategic technology firms and R&D centres as part of efforts to accelerate investment in strategic technologies and innovation.

A data centre operated by Viettel in Hòa Lạc, Hà Nội. — Photo courtesy of Viettel

The proposal is included in a draft decree detailing the implementation of several provisions of the Law on High Technology, which is currently undergoing appraisal by the Ministry of Justice.

Under the draft, strategic tech enterprises, strategic technology research and development (R&D) centres and high-tech R&D centres would be entitled to a full exemption from land-rent payments throughout their lease terms.

The ministry said the proposal would align incentives for strategic technology and high-tech R&D centres with those already available to digital technology innovation centres and research facilities operated by science and technology enterprises.

According to the ministry, these entities should receive priority support because they are expected to play a key role in developing strategic technologies and strengthening the country's technological self-reliance.

The proposal forms part of efforts to implement Resolution 57-NQ/TW, which identifies science, technology, innovation and digital transformation as key drivers of economic growth and calls for stronger policies to develop strategic technologies and globally competitive tech enterprises.

In addition to direct incentives for technology firms and research centres, the draft introduces a mechanism to ensure that projects leasing land from private infrastructure developers can benefit from land incentives comparable to those available in State-funded high-tech parks.

Under the proposal, land areas subleased to projects engaged in high-tech or strategic technology activities would be exempt from land-rent payments for the entire lease period.

Infrastructure developers would receive corresponding reductions in land-rent obligations to the State but would not be allowed to pass the value of those incentives on to tenants through higher sublease prices.

The ministry said the measure would effectively allow investors carrying out high-tech and strategic technology projects to enjoy full land-rent incentives even when operating in privately developed technology parks.

For other projects located within such parks, infrastructure developers would be exempt from land-rent payments for 15 years and receive a 50 per cent reduction for the remainder of the lease period. The resulting benefit would be passed on indirectly to investors through lower land costs.

According to the ministry, the current framework creates differences in incentive levels between projects located in State-funded high-tech parks and those operating in parks developed with private capital.

The proposed changes are intended to address that disparity, ensuring that investors undertaking similar activities receive broadly comparable land incentives regardless of the source of infrastructure investment.

Officials said the policy would help attract more private investment into strategic technology sectors, support the development of research and innovation facilities and improve the competitiveness of Việt Nam's high-tech ecosystem. 

Bizhub