Vietnam Proposes VAT Refunds and Incentives to Boost Foreign Film Production and Cultural Industries

On September 8, Vietnam’s National Assembly Committee for Culture and Society convened a working session with the Ministry of Culture, Sports and Tourism to review a draft law designed to foster growth in the nation’s cultural industries. The draft law is slated for discussion and potential approval during the National Assembly’s October sitting.

The proposed legislation outlines six key policy groups alongside six special mechanisms intended to create new momentum for Vietnam’s cultural sector. These measures aim to attract investment, develop infrastructure, unlock intellectual property assets, and expand both domestic and international markets.

Among the notable provisions is a value-added tax (VAT) refund mechanism specifically targeting foreign film crews operating in Vietnam. This initiative seeks to reduce production costs and encourage more international film projects to choose Vietnam as a location.

Additionally, the draft proposes partial cost support for cultural industry projects that demonstrate high economic value, alongside enhanced incentives for the publishing sector. Investment incentives are also planned for cultural industry infrastructure, original intellectual property assets, and priority cultural products.

The draft further emphasizes attracting foreign investors who meet criteria related to technology, intellectual property, and value creation within Vietnam. This approach is intended to ensure that foreign investment contributes meaningfully to the country’s cultural ecosystem.

To stimulate cultural consumption, the draft introduces new tools such as a proposed National Cultural Card, trading platforms, and measures to support market development both domestically and internationally. These initiatives aim to increase accessibility and engagement with Vietnamese cultural products.

The six policy groups covered by the draft include the development of the cultural industry ecosystem, intellectual property, human resources, infrastructure, markets, and finance, investment support, and incentives.

Regarding intellectual property, the draft seeks to improve access to finance for businesses whose value is primarily held in intellectual property rather than tangible assets. It also aims to establish a clearer framework for the use of information in capital contributions, transactions, licensing, and credit security. The development of price data and asset profiles is intended to reduce transaction risks.

Human resource policies focus on aligning training more closely with labor market demands, supporting priority occupations, and introducing additional tools to attract highly skilled talent to the cultural industries.

Infrastructure development is another priority, with proposals to reduce land and shared infrastructure costs for cultural industry businesses and creative entities. Given the interconnection with land use, planning, public assets, and investment, incentives would be tied to project classifications, eligibility conditions, and performance assessments.

The draft identifies market development as a significant challenge for Vietnamese cultural products, citing limited commercialization capacity, overseas intellectual property protection, transaction infrastructure, distribution networks, and international promotion.

To address these issues, the proposed market policies target both supply and demand sides, aiming to expand access to Vietnamese cultural products domestically and abroad. Consumer support measures are designed to improve access for eligible groups without interfering with market-driven pricing.

On financing and investment support, the draft proposes leveraging public resources to develop shared infrastructure, share part of investment risks, and encourage private capital participation rather than replacing businesses’ own investments. Support and incentives would be contingent on eligibility criteria, documentation, recovery mechanisms, and performance assessments.

If enacted, this legislative framework is expected to provide a broader and more favorable policy foundation for Vietnam’s cultural industries. These industries are increasingly recognized as emerging sources of economic value and potential drivers of new investment and creative activity.

The draft law aims to resolve existing policy obstacles and create an enabling environment for cultural businesses and investors to grow and expand within Vietnam.