The draft resolution on special mechanisms and policies for tourism development, submitted to lawmakers on Saturday, sets out seven groups of policies, ranging from investment incentives and business support to the night-time economy, workforce training and infrastructure.
Minister of Culture, Sports and Tourism Lam Thi Phuong Thanh said the policies aim to clear bottlenecks, draw investment and make tourism a key economic sector that helps drive the country's double-digit growth target.
Under the draft, incentives would be tiered by investment capital, number of jobs and type of project, and concentrated in Hanoi, Ho Chi Minh City and Da Nang as well as tourism centers, national tourism areas and areas with national tourism potential.
High-quality tourism projects with total investment of at least VND3 trillion, at least VND1.5 trillion of it for tourism components, and creating at least 1,000 jobs could receive infrastructure support inside and outside the project site and priority in promotion. Domestic investors in this tier could also rent unused state-owned houses and land.
Catalyst tourism projects worth at least VND10 trillion, with at least VND5 trillion for tourism components and at least 1,500 jobs, would be eligible on a five-year pilot basis for a preferential corporate income tax rate as low as 10%, half Vietnam's standard 20% rate, plus land rent exemptions or reductions set by the government.
The highest incentives would go to strategic projects with total investment of at least VND30 trillion, including at least VND15 trillion for tourism components, and at least 2,000 jobs. They could operate for up to 70 years, be exempt from corporate income tax for up to four years and have their tax cut by up to 50% for no more than nine years after that.
None of the three tiers would cover casino, prize-winning electronic gaming, betting or real estate components, Thanh said, as incentives would apply only to tourism activities.
The government also proposed a pilot cut of up to 30% in land rent for landscaped areas, green space, water surfaces and shared spaces not used directly for business at resort hotels rated four stars or above, provided they are in tourism centers or national tourism areas and have a gross building density below 25%.
Businesses opening new air routes for tourism could receive support, as could travel firms and accommodation providers that sign long-term contracts to buy products certified under the One Commune One Product (OCOP) program, which promotes local specialties.
For new business models, the draft offers incentives for complexes combining tourism, entertainment, culture and sports; for tourism combined with healthcare and medical treatment; and for activities involving local communities. Businesses would also be encouraged to use artificial intelligence, virtual reality, augmented reality and other new technologies to develop products and improve the visitor experience.
Crowds gather at the intersection of Ta Hien and Luong Ngoc Quyen streets in Hanoi's Old Quarter at night. Photo by VnExpress/Giang Huy
Some large-scale performing arts complexes, concert halls, festival streets, integrated entertainment zones and night-time economy activities would be allowed to operate 24/7 under a pilot of up to five years. They could follow shortened administrative procedures and obtain a one-time license for large international art programs and events held regularly, instead of reapplying for each edition.
The state budget would fund training for high-quality tourism workers in management, foreign languages, vocational skills, digital transformation, digital content creation and innovation, as well as for local workers in community tourism areas.
Budget funding would be prioritized for essential infrastructure and multimodal transport links from international gateways to growth poles, key tourism centers and national tourism areas. The state would also support the national tourism promotion program and help localities develop distinctive products and community tourism in ethnic minority, mountainous, border, island and disadvantaged areas.
Reviewing the draft, Nguyen Dac Vinh, chairman of the National Assembly's Committee for Culture and Society, said the committee supported special policies focused on projects able to lead and spread tourism growth in key areas.
But the committee found the incentives for strategic catalyst projects had been set at a very high level without an assessment of the benefits they would bring, and asked that they be weighed carefully. It also asked the government to explain how the minimum capital thresholds and the share of capital reserved for tourism were set, and whether the criteria for classifying projects were feasible.
The committee said casino, prize-winning electronic gaming, betting and real estate components must stay outside the incentives, and that support should be tied to project results so the policy cannot be used to develop businesses outside priority sectors. It also urged priority for domestic tourism businesses.
For community tourism, it called for clear criteria and conditions to ensure local people genuinely take part in managing and providing services and share in the benefits, with support tied to livelihoods, cultural preservation, indigenous knowledge and environmental protection.
The National Assembly is expected to vote on the resolution on Nov. 21.