The Vietnamese government recently issued Decree 205/2025/ND-CP, effective from 1/9, expanding incentives for supporting industries. This decree amends Decree 111/2015 and represents a significant adjustment after nearly a decade, aiming to unlock resources for domestic enterprises to participate more deeply in global supply chains.
 |
Workers on the assembly line at an automobile manufacturing plant in Phu Tho (formerly Vinh Phuc). Photo: Minh Quan |
Under the new decree, businesses producing supporting industry products can receive up to 70% support for market development activities. These activities include brand registration, exhibition participation, M&A consulting, and collaborations to become suppliers in industrial chains.
Support for technology transfer has also been expanded, with a maximum of 50% funding for machinery and equipment investment, and 70% for human resource training and operational capacity enhancement. Enterprises will also have access to capital from the National Technology Innovation Fund, the National Science and Technology Development Fund, and high-tech support programs.
For research and development (R&D) projects, facilities building research centers will receive land rent exemptions and reductions according to the Land Law. They will also receive equipment investment support through the Supporting Industry Development Program.
A notable addition in this decree is the expansion of incentives related to the environment, legal matters, and quality control. Specifically, businesses can receive up to 50% support for product testing, equipment measurement and calibration, intellectual property registration, and barcode registration. Supporting industrial parks will also benefit from environmental incentives under current regulations. Small and medium-sized enterprises (SMEs) in this sector will receive legal support in accordance with the Law on SME Support.
Regarding investment policies, supporting industry production projects will continue to receive benefits such as land and water surface lease incentives, tax exemptions and reductions, and other investment incentives under current law.
The list of prioritized products for support has been expanded, focusing on six key sectors:
| Textiles and Garments | Fiber, yarn, fabric, thread |
| Chemicals and dyes used in fiber, yarn, weaving, dyeing, finishing, printing, embroidery, and washing production | |
| Raw materials, auxiliary materials, and accessories for the textile and garment industry | |
| Supporting industrial products for weaving, dyeing, finishing, printing, embroidery, and washing processes | |
| Footwear | Salted leather, tanned leather, artificial leather, thread |
| Shoe soles, shoe caps, shoe tips, shoelaces, insoles | |
| Leather tanning chemicals, dyeing chemicals | |
| Raw materials, auxiliary materials, and accessories for the footwear industry | |
| Molds (Forms) | |
| Electronics | Basic electronic and optoelectronic components |
| Electronic chips | |
| Materials for electronic component production | |
| Electronic components and parts made from | |
| Components for computers, tablets, mobile phones, and smartwatches | |
| High-resolution screens | |
| Automobile Manufacturing and Assembly | Internal combustion engines and engine parts |
| Electric motors and their parts; power converters and electrical conversion control accessories | |
| Engine control software, control systems, and parts and component clusters for automobile control systems | |
| Products and components of lubrication, cooling, fuel supply, power transmission, and suspension systems | |
| Steering systems; braking systems; automobile exhaust systems; mirror systems; windshields; car seats; airbags; safety belts | |
| Frames, bodywork, car doors, chassis: Stamped sheet metal parts; galvanized iron; car door clusters; cabins | |
| Wheels: Tires; wheel rims; tire liners | |
| Products and components of lighting and signal systems: Lights; horns; antennas; GPS devices; various gauges | |
| Electrical and electronic components | |
| Mechanical Engineering | Molds, jigs |
| Cutting tools and knives | |
| Welding and cutting materials | |
| Components and spare parts for machinery and equipment | |
| Components and spare parts for railway vehicle manufacturing and assembly machinery and equipment | |
| Railway supplies and spare parts | |
| Machine parts | |
| Engineering steel; tool steel; special high-strength alloys; technical ceramic materials for the machinery manufacturing industry; metal powder for the machinery manufacturing industry | |
| Products and semi-finished products from: Metal casting using lost wax casting, resin sand casting, metal molds, and die casting; forging and pressure processing; heat treatment to improve product quality; high-tech welding; metal cutting and non-metallic material processing, and surface treatment products. | |
| Supporting industrial products for high-tech industries | Various types of molds |
| Various types of high-quality standard mechanical parts and component clusters used for electronic equipment, mechatronics, micro-mechatronics, medical electronics, industrial robots, machine tools, and new-generation high-precision CNC equipment | |
| Various types of electronic components, optoelectronic components, and electronic chips for developing smart and new-generation devices | |
| Component clusters and spare parts for power generation equipment systems from new and renewable energy sources; solar cells; fuel cells; high-performance, high-capacity, long-life lithium batteries and battery packs; high-efficiency PV panels | |
| Various types of high-quality plastic parts | |
| Various types of sensors | |
| New-generation motors: Electric motors, magnetic bearing motors, servo motors (stepper motors), reluctance motors, linear motors | |
| Advanced, high-precision actuators; controllers, automatic monitoring and diagnostic units | |
| Components, component clusters, and train running systems for urban railways and national railways | |
| Components, component clusters, and spare parts for satellites, aerospace, aircraft, aircraft control systems, global positioning systems and equipment, and advanced robots | |
| New-generation advanced materials |
Hai Long
