Foreign Investment Incentives at Vietnam

In December 1987, first law on foreign investment was passed in Vietnam. But in the year 1996 this law was replaced after being amended twice. The main objective of this law is to encourage foreign investment, sets out procedures for foreign investors and also guarantees the ownership of invested capital. Some of the areas are there in which investment is promoted and in January 1998 the rule was adopted. These areas are:

Agricultural, Fishery and Forestry Sectors

Processing of forestry, agricultural and fishery products for the purpose of export.

Manufacture of spare parts, equipment and agricultural machinery.

Technology of preservation of post- harvest agricultural products, food and also application of bio- technology and biological measures in fishery, agriculture and forestry.

Production of materials for insecticides which are of high strength and also safe for domestic animals, humans and environment.

Projects that effectively use the natural resources available and utilize a high number of workers as well.

Industrial Sectors

Development of the petro-chemical industry.

Exploitation, exploration and down-stream processing of minerals.

Production of high-quality special metals, billet, alloy, steel, non-ferrous metals, and sponge iron for industry.

Manufacture of spare parts for motorbike and automobile manufacture.

Production of fibre and silk of various kinds, special fabrics used in industry and some textile products for export.

Production of high quality materials for garments and also footwear for the purpose of export.

Manufacture of equipment, building of ships and spare parts for fishing boats and cargo ships.

Manufacture of high voltage devices.

Production of medicines and some materials.

Manufacture of machinery, manufacture of technologically-advanced diesel engines and spare parts for hydraulics, engines and compressing machines.

Manufacture of apparatus for the treatment of waste water.

Manufacture of mechanical equipment.

Production of basic pure chemicals, specialized chemicals and dyes are also included.