Currently, Vietnam is considered an attractive destination for technology companies, where the trend of technology usage from individuals to organizations is quite popular. Technology is applied diversely across all fields, from entertainment and learning to business. Therefore, many foreign individuals and organizations have chosen Vietnam to conduct business, specifically by establishing companies to provide services or sell technology products. However, for business activities of foreign investors in Vietnam, depending on the industry and scope of operation, enterprises will need to meet certain conditions. These may include conditions related to WTO commitments, conditions for operating e-commerce platforms, or conditions for business licenses for retail and e-commerce activities. Within the scope of this article, CDLAF will first share all the information that foreign individuals and organizations need to clearly understand when planning to establish a company related to technology services in Vietnam.
1. Are foreign investors restricted when doing business in technology services in Vietnam?
Currently, the information technology business sector, which under the Law on Digital Technology Industry effective from January 1, 2026, is newly defined as the digital technology services sector. Accordingly, digital technology enterprises are enterprises that produce digital technology products and provide digital technology services. At the same time, digital technology is understood as a set of scientific methods, technological processes, and technical tools used for the production, transmission, collection, processing, storage, and exchange of digital information and data, as well as the digitalization of the real world. This sector currently encouraged for investment by the Vietnamese government, from domestic regulations to Vietnam’s commitments to open the market for individuals and organizations operating in this sector in Vietnam.
In the case of establishing a digital technology enterprise in Vietnam, if the scope only involves technology services or computer programming and software development, foreign investors can choose from several Vietnam Standard Industrial Classification (VSIC) to apply, such as:
- Software publishing activities, specifically: Producing and providing software products and services, with VSIC code 5820 and CPC code 842 for foreign investors;
- Computer programming activities: VSIC code 6201 and CPC code 842
- Information technology service activities and other services related to computers, specifically: Computer troubleshooting and software installation (excluding internet access agency services), VSIC 6209 and CPC 849.
- Computer consultancy and computer system management, VSIC code 6202, CPC code 842
And some other sector codes will be arranged based on the detailed description of your planned business activities in Vietnam.
For foreign investors, conducting business in Vietnam also depends on the market access commitments that Vietnam has made under the WTO Schedule of Commitments. Accordingly, for the technology services group, under the provisions of the WTO Schedule of Commitments and Appendix I of Decree No. 31/2021/ND-CP, computer services and other related services (CPC 841–845, CPC 849); wholesale services (CPC 622); retail services (CPC 632); and management consulting services (CPC 865) are not considered sectors with restricted market access for foreign investors. Foreign investors are allowed to own 100% of the charter capital in companies conducting information technology service business in Vietnam.
2. Tax incentives for foreign investors conducting technology service business in Vietnam
As shared in the previous section, with the orientation to develop the digital technology industry, even in previous years, the Vietnamese government has issued many policies to attract foreign capital and high-tech human resources from abroad to promote the growth of the technology economy, and more recently with the introduction of the Law on Digital Technology Industry. Some of Vietnam’s policies that are considered to have a significant impact on the digital economy include corporate income tax incentives for companies operating in the information technology sector, as exemplified below:
Corporate income tax incentives: Currently, companies that are not eligible for preferential tax rates must pay tax at a rate of 15–20% on revenue after deducting reasonable expenses allowable for corporate income tax calculation, except for certain specific business activities such as oil and gas exploitation. However, for information technology companies, depending on the specific sector of the enterprise, a preferential tax rate of 10% may be applied. Concurrently, they may also be eligible for a 4-year corporate income tax exemption and a 50% tax reduction for up to 9 subsequent years.
In the information technology sector, the following service groups are considered eligible for corporate income tax incentives, specifically:
- High-tech applications, venture investment for high-tech development included in the list of high-tech areas prioritized for development under the provisions of the Law on High Technologies; strategic technology applications as regulated by law; high-tech incubation, high-tech enterprise incubation; investment in construction and operation of high-tech incubation facilities and high-tech enterprise incubation;
- Production of software products; production of cybersecurity products and provision of cybersecurity services meeting the conditions prescribed by the law on cybersecurity; production products, provision of key digital technology services; production of electronic devices as regulated by the Law on Digital Technology Industry; research and development, design, production, packaging, and testing of semiconductor chips; construction of artificial intelligence data centers.
Value-Added Tax: Currently, the tax rates range from 5% to 10% based on the value of goods sold or services provided per transaction. For software products and software services, they are currently classified as exempt from value-added tax for domestic sales and service provision activities within Vietnam. In cases enterprises export goods or services outside the territory of Vietnam or to non-tariff zones, the applicable VAT rate is 0%.
The enactment of the Law on Digital Technology Industry has clearly defined the Vietnamese government’s orientation that technology is considered an industry, with specific planning for each area. Along with this, there are policies to encourage investment, promote resources, and attract experts in the technology field to choose Vietnam as their destination. In the next article, we will specifically share issues related to how to establish a technology company, guidance on setting up lease agreements, and hiring and employing labor in Vietnam.
Time of writing: 10/11/2025
The article contains general information which is of reference value, in case you want to receive legal opinions on issues you need clarification on, please get in touch with our Lawyer at info@cdlaf.vn
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You can refer for more information:
- Obligations to Comply with Personal Data Protection in the Labor Outsourcing Sector
- Non-Compliance with Social insurance regulations in Vietnam: Legal risks for FDI Enterprises
- When can enterprises use foreign currency within Vietnam’s territory?
- Discussion on the form of capital contribution by management experience in enterprises
- Why must enterprises protect employees’ personal information?
