Centralized digital technology zones in Vietnam are proving to be economic powerhouses, boasting revenue efficiency of up to 10 million USD per hectare per year, along with higher productivity and income levels than national averages.

This information was shared by Nguyen Khac Lich, Director General of the Department of Information Technology Industry under the Ministry of Science and Technology, at the investment promotion conference titled "Promoting Investment in Centralized Digital Technology Zones in Ho Chi Minh City" recently.

He affirmed that over the past 12 years, Vietnam has built a solid infrastructure foundation for its digital technology industry.

Million-dollar efficiency

The model of centralized IT zones was first legalized under Decree 154 in 2006. Following the enactment of the Digital Technology Industry Law in 2025, the designation “centralized IT zone” was officially updated to “centralized digital technology zone.”

Nguyen Khac Lich cited statistical data showing that Vietnam currently has eight centralized digital technology zones located in Hanoi, Ho Chi Minh City, Da Nang, and Can Tho.

The total land area of these zones has reached 2.588 million square meters - more than ten times larger than in 2013 - and is home to over 630 digital technology enterprises, marking a 20% increase.

Notably, these zones are generating exceptionally high economic value relative to land usage. “Land use efficiency reaches about 10 million USD per hectare per year - a remarkably high figure compared to other functional zones,” the director noted.

He emphasized that centralized digital technology zones are “not merely places for companies to operate, but spaces where value is created, knowledge is nurtured, and innovation is powerfully driven.” The productivity and income of more than 42,450 high-quality personnel working in these zones are also reported to be “significantly higher than the national average.”

Amid the global technology shift, Vietnam is redefining its development model. Rather than focusing on standalone software or applications, the current trend is toward integrated ecosystems involving AI, big data, semiconductors, and breakthrough technologies.

According to Nguyen Khac Lich, “Developing centralized digital technology zones is not about expanding industrial real estate. We are building an ecosystem where all companies - from startups to global corporations - can innovate, test, scale, and reach global markets.”

The most distinctive feature of the new model, as stipulated by the Digital Technology Industry Law, lies in its outstanding incentive mechanisms, open institutional environment, sandbox testing frameworks, and shared digital infrastructure such as cloud systems, data centers, chip testing labs, and supercomputers for AI training.

At the conference, representatives from Yen Binh Digital Technology Zone, Quang Trung Software City, and Becamex Binh Duong presented their operational models, experiences, and future development directions aimed at attracting global technology giants.

Land lease exemptions and 5-year personal income tax waivers

To accelerate the development of centralized digital technology zones, an unprecedented incentive policy framework has been introduced.

Financially, both infrastructure development projects and digital technology investment projects within these zones enjoy the highest corporate income tax incentives: a 10% tax rate for 15 years, a complete exemption for the first 4 years, and a 50% reduction for the following 9 years.

For mega-projects valued at over 6 trillion VND (approximately 250 million USD) in critical sectors such as semiconductors, high-performance computing (HPC), and supporting technologies, tax incentives are extended by 1.5 times, and companies can deduct 200% of research and development expenses.

Regarding land, infrastructure developers of centralized digital technology zones are granted full land lease exemptions for the entire project duration.

This policy also applies to companies producing key digital technology products such as semiconductors and artificial intelligence (AI).

Notably, to attract top talent, the new policy allows a five-year exemption on personal income tax for high-quality workers in the industry.

Experts and specialists are also granted five-year visas for themselves and their families (spouses and children under 18), along with exemptions from work permits. In addition, they receive support in finance, working environments, housing, and transportation.

To resolve procedural bottlenecks, the Digital Technology Industry Law has implemented a new decentralization approach. The authority to establish, expand, and recognize centralized digital technology zones has been shifted from the Prime Minister to provincial-level People's Committees.

Administrative procedures have been streamlined by up to 50%, including the removal of the previous requirement to submit a project establishment proposal.

This move is seen as a strong signal that “Vietnam is ready to move fast and take the lead in the digital technology era.”

The Ministry of Science and Technology has pledged to support localities and investors in overcoming challenges, with the vision of positioning Vietnam as a leading global destination for the digital technology industry.

Du Lam