According to the recent announcement from the Ministry of Science and Technology, Vietnam now has only 80 recognised high-tech firms. As a result, the ministry has proposed tax incentives to high-tech companies that may result in less for the state budget. 

Large-scale FDI projects could benefit from major tax incentives
 

High-tech companies are commonly offered a preferential corporate tax rate of 10% for 15 years, tax exemption for four years and a 50% reduction of taxes for for the following nine years.

Large-scale companies, with registered capital of over VND6 trillion, can benefit from a 10% corporate tax policies for 30 years.

However, studies by the Ministry of Finance showed that these regulations may not be working, as rapidly-changing technology outpaces the tax code, which recognises companies using outdated technology as high-tech. 

In order to be recognised as high-tech, a company's labour force must also consist of at least 5% university graduates, along with various revenue requirements, which disqualify many firms. 

The Ministry of Finance has stated that these requirements are too strict and unfeasible for enterprises in Vietnam. So, the ministry proposed that they should only be applied to large companies that have a registered capital of at least VND12 trillion.