Circular 33/2025/TT-BKHCN, dated November 15, 2025, sets out four main criteria for eligibility. Enterprises meeting any of these criteria may benefit from corporate income tax (CIT) incentives, aimed at encouraging investment, boosting innovation, and improving national competitiveness.

The criteria are designed to promote the use of domestically manufactured components, strengthen research and development (R&D) capacity, increase the technological content of products, and develop a Vietnamese enterprise ecosystem within the electronics supply chain.

A Samsung factory worker in Bac Ninh province, northern Vietnam. Photo courtesy of Tuoi Tre (Youth) newspaper.

The first criterion is using semiconductors designed or manufactured in Vietnam.

Enterprises are eligible for incentives when using semiconductors whose designs are owned by Vietnamese organizations, enterprises, or individuals. Ownership can be established through self-designing, hiring others to design (with Vietnamese participation), or acquiring the design from another entity.

Enterprises also qualify if they use semiconductors produced, packaged, or tested at factories or production lines in Vietnam. This criterion aims to encourage the development of the domestic semiconductor industry and increase the localization rate of electronic products.

The second is research and development (R&D) capacity. This is a foundational criterion to promote innovation and the development of domestic technology. Enterprises must have an R&D department with at least 10 personnel holding university degrees or higher, and at least half of them are Vietnamese citizens.

For small and medium-sized enterprises (SMEs), requirements are more flexible. They do not need a separate department but must have at least three personnel conducting R&D activities, with 50% being Vietnamese.

Financially, enterprises must spend at least 2% of the average net revenue over the past three years on R&D, or at least VND200 billion ($7.6 million) per year for three consecutive years.

For enterprises operating less than three years, R&D spending is calculated over the entire period of operation, but must include at least one full financial year. This regulation encourages companies to invest in new technologies systematically and sustainably.

The third is ownership of electronic product design. An enterprise may qualify if the project’s products have designs owned by it. Designs include requirement specifications, system architecture, detailed designs, schematics, PCB (printed circuit board) layouts, and related technical documents.

Ownership can be established through self-designing, hiring designers (with Vietnamese participation), or purchasing designs. This criterion is important to enhance intellectual content and value-added of “Made in Vietnam” electronic products.

The last is development of domestic supply chains and technology transfer. Enterprises must meet two simultaneous requirements: at least 30% of Vietnamese businesses must participate in supplying components, materials, or services directly for the project; and they must transfer technology to at least one Vietnamese organization or enterprise within five years from the issuance of the investment registration certificate or the in-principle approval decision.

This criterion promotes development of domestic enterprises, builds a sustainable electronics production ecosystem, and strengthens Vietnam’s capacity to absorb new technologies.

In addition, Circular 33 requires enterprises to self-certify compliance with the criteria to receive CIT incentives and to be responsible for the accuracy of the information provided. They must also provide and update project data on the national digital industry information system.

The circular takes effect from January 1, 2026, and is expected to create an important legal framework to boost the development of Vietnam’s electronics, semiconductor, and high-tech industries.

Earlier, in 2024, several major corporations, including U.S. chipmaker Intel, were reportedly “hesitant” to make new investments or expand operations in Vietnam, as the global minimum tax was expected to reduce the country’s investment attractiveness. The new rules are expected to reverse such a situation.

U.S. chipmaker Intel plans to shift its assembly, packaging, and testing operations from its Costa Rica facility to potential markets such as Vietnam, said Kenneth Tse, general director of Intel Products Vietnam.

This is part of Intel’s ongoing global strategic transition and adjustments to optimize its manufacturing operations, thus enhancing its efficiency and competitiveness, Tse told Chairman of the HCMC People’s Committee Nguyen Van Duoc on October 25.

According to Tse, the Vietnam plant is Intel’s largest assembly and testing facility, accounting for more than half of its global output and employing over 6,000 workers. The facility has adopted new technologies, including Intel’s most advanced 18A chip line.

After nearly 20 years of operation in Vietnam, IPV had exported more than 4 billion units, contributing over $100 billion to Vietnam’s export turnover as of Q2/2025.