Vietnam Drafts Law to Boost Foreign Investment in Cultural Industry with Strategic Incentives

Vietnam is advancing legislative efforts to stimulate foreign investment in its cultural industry through the Draft Law on the Development of the Cultural Industry. The draft law proposes a framework that prioritizes foreign investment projects meeting specific criteria, aiming to enhance the sector’s growth by integrating international expertise and capital.

Under the draft law, foreign investment projects eligible for priority status must operate in sectors where foreign investors face no market access restrictions under Vietnamese law and international treaties. Additionally, these projects must satisfy market access conditions stipulated by investment laws and specialized regulations.

Foreign investors must fulfill at least one of several key qualifications: ownership of cultural intellectual property widely recognized and protected internationally; possession of core technologies classified as priority digital technologies within the cultural sector; or status as world-leading cultural industry enterprises, assessed by financial strength, technological capacity, production and distribution capabilities, commercial exploitation experience, market data, or reputable international rankings.

Importantly, the draft law emphasizes not only the investors’ capabilities but also their engagement with Vietnamese cultural assets. Priority projects are required to involve the exploitation or development of Vietnamese cultural intellectual property, commit to promoting Vietnamese culture internationally through global distribution networks, and collaborate with Vietnamese cultural enterprises, artists, and artisans.

Investors must also commit to human resource training, technology transfer, application of advanced technologies, digital transformation, data connectivity, and adherence to project timelines. Furthermore, they are obligated to fulfill commitments related to project transfer and to repay incentives if commitments are unmet or only partially fulfilled.

The draft law outlines investment incentives for priority foreign projects, especially those located in disadvantaged areas or those capable of leading the cultural industry value chain. Large-scale projects with leadership potential will receive special incentives under investment law and related regulations.

Foreign entities establishing legal entities in Vietnam will enjoy corporate income tax incentives equivalent to those available to Vietnamese businesses when investing in digital infrastructure, high-tech cultural solutions, and key cultural sectors such as cultural tourism, film, performing arts, fine arts, and educational online video games that promote Vietnamese cultural and historical values.

To streamline processes, the Ministry of Culture, Sports and Tourism will implement a one-stop mechanism to guide foreign organizations and individuals engaging in filming services or organizing international cultural events in Vietnam. Eligible participants may receive one-time subsidies covering actual production costs incurred domestically, as stipulated by the Government.

Projects that produce cultural products embodying Vietnamese identity, heritage, history, and national image promotion will qualify for additional incentives beyond general provisions. Those establishing cultural industry research and development centers in Vietnam will receive support for training and research expenses, with encouragement for technology transfer to domestic organizations.

The draft law also provides investment incentives for projects promoting cultural heritage, including building and developing public museums and investing in preservation, restoration, digitization, exhibition, education, communication, and museum service facilities.

Detailed criteria regarding investment scale, value chain leadership capacity, and procedures for applying, terminating, or revoking incentives will be specified by the Government.

Overall, the Draft Law on the Development of the Cultural Industry aims to attract foreign investment selectively, focusing on technological capacity, commercial exploitation, and the sustainable development of Vietnamese cultural intellectual property. It seeks to foster human resource development, technology transfer, and international market expansion, thereby positioning Vietnam’s cultural industry for robust growth and global integration.