Vietnam Issues New Investment and Tax Support Rules for Defense Enterprises
Vietnam’s Decree No. 404/2026 took effect on November 11, 2026, giving enterprises directly serving national defense and security priority in eligible key projects. It also provides budget support and tax measures, while allowing Viettel to use its science and technology development fund for venture investment under specified conditions.
Vietnam’s Decree No. 404/2026 took effect on November 11, 2026. It sets operating and financial management rules for certain enterprises for which the Ministry of National Defense represents the state as owner, as well as other enterprises undertaking military and national defense tasks. Deputy Prime Minister Nguyễn Văn Thắng signed the decree on behalf of the government.
Under the decree, enterprises directly serving national defense and security may be given priority for designation as investors or for taking on the investment and operation of projects aligned with their development strategies and assigned tasks. Eligible projects include those in areas of strategic importance to national defense, major national projects linked to defense, and projects involving core technologies, strategic minerals or dual-use facilities. Where the law requires an investor selection process, the applicable legal provisions on priority still govern.
Enterprises carrying out assigned projects may receive partial or full funding from the state budget. With approval from the competent authority, relevant military and national defense research projects and strategic technology investment projects may enter into technology transfer contracts with foreign parties before an investment decision is made. Related actual expenses supported by the required documentation may be included in project costs. The decree also provides for corporate income tax deductions for certain expenses and tax exemptions on income from crop cultivation, animal husbandry and other production activities in areas with especially difficult socioeconomic conditions.
Viettel Group (Tập đoàn Công nghiệp-Viễn thông Quân đội) and its subsidiaries may use their science and technology development funds for venture investment, contributions to venture capital funds or the establishment of investment companies, subject to a cap of 5% of annual taxable income. The decree also provides for capital and asset transfers between the group’s wholly owned subsidiaries, and during eligible restructurings, at book value without revaluation.
Viettel Group.（VietVance）
Source: VietVance
