Vietnam is promoting the intelligent and green transformation of its industries.

25-10-09

Vietnam is actively promoting the intelligent and green transformation of industries, and through two policies, it has directly provided incentives and support for the energy-saving transformation and intelligent transformation of smart factories.


Encouraging private capital investment in digital infrastructure:

On September 29th, Deputy Prime Minister Nguyen Chi Hung issued a plan to encourage private enterprises to participate in the construction of the country's digital transformation facilities. 

(1)Smart transformation direction: This plan explicitly encourages private enterprises to invest in the construction of data centers, cloud computing infrastructure, and physical-digital integration facilities, and requires these facilities to conform to modern, intelligent, green, and sustainable development trends. This provides a more advanced and reliable external digital environment for smart factories. 

(2)Energy-saving renovation direction: The policy particularly emphasizes that the direct trading mechanism between renewable energy power generation enterprises and major electricity consumers will be effectively implemented. This means that in factories in Vietnam, if they are major electricity consumers, they will have the opportunity to directly purchase green electricity. This is not only an important means of reducing carbon emissions but also a form of broad-based energy-saving renovation.


Expand the scope of "industrial promotion" support:

Starting from October 2025, the newly revised "Industrial Promotion" policy in Vietnam has come into effect, significantly expanding the range of industries that can enjoy government support. 

(1)Energy-saving renovation direction: The new policy clearly includes fields such as low-carbon industries, environmentally friendly industries, and energy-saving building materials in the list of supported areas. This means that for enterprises planning to carry out energy conservation and environmental protection renovations in their factories, such as investing in waste gas and wastewater treatment equipment or introducing low-carbon processes, they may receive corresponding subsidies or financial support, which helps to reduce the initial investment costs. 

(2)Supporting measures: The policy also provides incentives for investing in infrastructure such as wastewater and exhaust gas treatment facilities in industrial parks. By choosing to set up in these parks with well-developed infrastructure, the energy conservation and environmental protection pressure of the factories will be reduced accordingly, and the operational environment will also be better.


Tax incentives boost smart transformation:

Starting from October, Vietnam has introduced new tax support policies for the field of artificial intelligence (AI). 

(1)The direction of intelligent transformation: The country explicitly supports enterprises in investing in AI-related equipment and stipulates that the research and innovation expenditures of enterprises can be recognized as legitimate expenses, thereby enjoying tax reductions. This provides direct financial incentives for factories to introduce AI technology into their production lines and carry out intelligent upgrades.