Legal expert Trung Tai provides the following response:
On September 4, 2026, the Government of Vietnam promulgated Decree No. 344/2026/ND-CP on the application of science and technology and development of the manufacturing industry in the electric power sector.
According to the Decree, from October 20, 2026, general incentives for enterprises manufacturing electrical equipment in electric power sector shall be provided as follows:
(1) Enterprises manufacturing electrical equipment included in the Lists specified in Clause 2 Article 4 of Decree No. 344/2026/ND-CP shall be entitled to the incentives applicable to the business line of manufacturing key mechanical engineering products in accordance with the laws on investment, taxation, land, and accounting, and other relevant laws.
(2) Enterprises implementing investment projects for the manufacture of electrical equipment included in the Lists specified in Clause 2 Article 4 of Decree No. 344/2026/ND-CP that have an investment capital scale and disbursement schedule as prescribed by the Government of Vietnam, satisfy the criteria regarding high technologies and technology transfer, and involve Vietnamese enterprises in domestic production value chains in accordance with regulations of the Prime Minister of Vietnam shall be entitled to special investment incentives and support in accordance with the law on investment and other relevant laws.
(3) Enterprises manufacturing electrical products and equipment, and components, spare parts, and materials used for the manufacture of electrical equipment, that are included in the Lists specified in Clause 2 Article 4 of Decree No. 344/2026/ND-CP and are eligible for encouragement and development support shall be entitled to the following incentives and support:
- Electrical products and equipment included in the list of key mechanical engineering products shall be entitled to incentives and support in accordance with the law on the development of key mechanical engineering products;
- Components, spare parts, and materials used for the manufacture of electrical equipment that are included in the list of supporting industry products prioritized for development shall be entitled to incentives and support in accordance with the law on supporting industry development;
- Electrical products and equipment included in the List of Strategic Technologies and Strategic Technology Products promulgated by the Prime Minister of Vietnam shall be entitled to incentives and support in accordance with the law on high technologies.
See more details in Decree No. 344/2026/ND-CP effective as of October 20, 2026.
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