Governmental Support

Tax incentives for software companies

No VAT tax and no corporate income tax (normally 28%) for the first 4 years

50% tax exemption for the subsequent 9 years.

Vietnamese software products and services provided for use within Vietnam will not be liable to value added tax. If exported, no tax in charged and tax reimbursement shall apply according to the Law on Domestic Investment Promotion and the Law on Foreign Investment in Vietnam.

Investment on education

Vietnam's government provides significant tax credits for engineering students and computer science. Since 2001, the government signed agreements with foreign countries to aid in the training of its budding technologists.

According to the Vietnam Economic Times, over 80% of the graduates from Vietnamese universities and colleges graduate with science degrees making Vietnam a particular good destination for technology outsourcing with benefits such as.

- Producing more software engineers:

+ About 80.000 IT graduates
+ Software engineer number is increasing by around 9,000 per annum

- Number of training centres:

+From diploma up to ICT curriculum: 99 universities, 105 colleges. A large percentage of the young generation prefer studying IT. A Software engineer is considered a hot job.

Investment on infrastructure

New buildings, high-tech parks, software parks.

Vietnam enjoys an advantageous privilege of being connected to quality high speed networks and bandwith in comparison with other developing countries. On top of the two submarine cables and satellite capacity, a terrestrial cable links the country directly to Hong Kong; the largestinternational telecom hub within the whole Asia Pacific area.

The country is also well covered by various telecom providers. The telecommunication quality is impeccable with an amazingly low cost that is suitable for business.

Positive legal IT climate

Creating stable legal framework, inc.
- Law on Information technology, issued by the National Assembly on June 29, 2006
- Law on e-commerce, issued by the national Assembly on November, 29, 2005,
- "Strategy for ICT development until 2010 and direction toward 2020" approved by Prime Minister in October, 2005, etc.