HANOI: The draft Law on Digital Technology Industry proposes many regulations and policies to support the development of the digital technology industry to become an economic sector that contributes greatly to the country’s economy.
It is also expected to stipulate a number of special policies for semiconductor-industry developments.
The draft Law on Digital Technology Industry, being drafted by the Information and Communications Ministry (MIC), includes six chapters and 90 articles.
The extensive regulations are aimed at promoting the development of the digital technology industry into an economic sector that contributes greatly to the economy.
Vietnam has become a favoured destination to nurture and develop technology businesses.
In the draft proposal, the MIC states that the current legal regulations on the technology sector were issued over the past 17 years, at a time when the technology sector was just starting to develop in Vietnam.
The regulations have not been adapted to new problems that arise in the practical development of the technology sector.
The draft law has proposed a number of policies to promote the development of the technology sector, develop the brand of Vietnam’s technology industry and develop domestic and foreign markets, as well as investing, purchasing and selecting suppliers of technology products and services using government funds.
The government provides partial financial support when organisations and businesses participate, with a minimum support level of 30% and a maximum of no more than 80% of the total cost.
In addition, technology-product manufacturing in which at least 30% of Vietnamese enterprises out of the total number of enterprises participate and perform assembly contracts, supply of components, raw materials and domestic production services to make products and at least 30% of the product cost is created by Vietnamese enterprises, are entitled to preferential corporate tax rates of 10% for a period of 15 years.
It is expected that there will also be policies to support development, incentives for sector activities, credit policies for businesses and funds for industry development.
In particular, the draft law proposes that enterprises with projects to produce digital products may borrow from the government according to the provisions of law on investment credit and receive a loan at preferential interest rates from the Vietnam Environmental Protection Fund for the project’s pollution treatment and environmental-protection requirements. — Viet Nam News/ANN