Vietnam's VCCI calls for raising 50% cap on R&D costs of FDI firms

The decision would help encourage closer collaboration among businesses and research institutions, enhancing their capabilities and contributing to the scientific and technological development of the country, it noted in a statement.

In a policy feedback requested by the ministry of planning and investment, the chamber said as the country will impose additional corporate income tax under the global minimum tax, it is time to upgrade the investment support policies as well.

Investment support policies offer flexibility, allowing the state to select the target, form and content of support to guide enterprises in investment activities, VCCI noted.

Therefore, while designing investment support policies, it is essential to choose options that can realise more than one objective, those that support business enterprises and produce positive, long-term impacts on Vietnam's socio-economic development, it said.

The chamber also recommended adding criteria concerning the nationality of directly employed researchers to promote the recruitment of Vietnamese researchers and scientists for R&D activities, according to domestic media outlet.

These policy decisions would help attract businesses to invest in Vietnam instead of moving production elsewhere, the chamber said.

Fibre2Fashion News Desk (DS)