Consolidated Document number 42/VBHN-BCT Decree on Promoting Industry

MINISTRY OF INDUSTRY AND TRADE -------	SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------------
Number: 42/VBHN-BCT	Hanoi, October 8, 2025

 

DECREE

ON INDUSTRIALIZATION INCENTIVES

The Government Decree No. 45/2012/NĐ-CP on industrialization incentives dated May 21, 2012, which took effect from July 5, 2012, has been amended and supplemented by:

Government Decree No. 235/2025/NĐ-CP dated August 27, 2025, amending and supplementing certain articles of Government Decree No. 45/2012/NĐ-CP dated May 21, 2012, on industrialization incentives, which takes effect from October 15, 2025.

Based on the Law on the Organization of the Government dated December 25, 2001;

At the proposal of the Minister of Industry and Trade;

The Government issues this Decree on industrialization incentives,

PART I

GENERAL PROVISIONS

Article 1. Scope and Objectives

Thông tư này quy định chi tiết khoản 4 Điều 38 Luật Thủy sản số 18/2017/QH14 đã được sửa đổi, bổ sung tại điểm c khoản 21 Điều 14 Luật số 146/2025/QH15.

This Decree stipulates policies to encourage and support organizations and individuals participating in rural industrial production development, cleaner production application, sustainable production and consumption in industry (hereinafter referred to collectively as industrialization activities).

2.[3] Applicability

a) Small and medium enterprises, business cooperatives, cooperatives, cooperative unions, individual businesses directly investing in and producing industrial and small-scale industrial products in communes, wards, special administrative-economic zones under provinces; communes, special administrative-economic zones under centrally-administered cities; craft villages recognized by provincial People's Committees (hereinafter referred to collectively as rural industrial establishments).

b) Industrial establishments applying cleaner production, sustainable production and consumption; enterprises and cooperatives as investors in building infrastructure for industrial clusters.

c) National artisans, outstanding artisans in the field of traditional crafts.

d) Domestic and foreign organizations and individuals participating in management and implementation of industrialization service activities.

Article 2. Interpretation of Terms

1.[4] The National Industrialization Program is a collection of contents and tasks related to industrialization activities during each phase (five years), organized and approved by the Ministry of Industry and Trade in accordance with the medium- and long-term sectoral development plans, aiming to encourage the development of industry and small-scale industry nationwide.

2. Industrialization Plan is a collection of annual industrialization projects and tasks, setting out specific progress and expected results to meet the requirements of the national industrialization program for each phase. The National Industrialization Plan is approved by the Minister of Industry and Trade; the local industrialization plan is approved by the Chairman of the Provincial People's Committee.

3. Industrialization Project is a project developed to implement one or more of the industrialization activities specified in Article 4 of this Decree. An industrialization project has clear objectives, contents, beneficiaries, implementation period, and budget.

4. Outstanding Rural Industrial Products are products produced by rural industrial establishments, having high quality and utility value; potential for production expansion and market development; meeting certain basic criteria regarding economy, technology, society; raw material usage; job creation for workers and environmental protection requirements.

5. Cleaner Production in Industry involves applying management and technological solutions to improve the efficiency of natural resource, raw material, fuel, and material use; reduce emissions and limit environmental pollution levels.

5a.[5] Sustainable Production and Consumption is the application of solutions following a product lifecycle approach, promoting linkages from natural resource extraction, raw material, fuel, and material procurement, design, production, distribution, consumption, and disposal, emphasizing repair, maintenance, reuse, and recycling throughout the product lifecycle; prioritizing innovation, green technology application, equipment and process management improvement to promote a green economy, circular economy, and sustainable development.

5b.[6] Digital Transformation in Industrialization Activities is supporting the application of advanced and digital technology products and solutions to change traditional management and business models to create new opportunities, products, revenue, and value in industrial and small-scale industrial production.

6. Industrialization Services are services that need to be implemented to carry out the industrialization activities specified in Article 4 of this Decree.

Article 3. Objectives of promoting small-scale industry activities

1. Mobilize and harness domestic and foreign resources to participate in or support organizations and individuals investing in industrial and small-scale industrial production.

2. Contribute to the restructuring of the economy towards the development of industrial and small-scale industrial production, creating jobs, increasing income, implementing social labor reallocation, and contributing to building new rural areas.

3. Encourage and support cleaner production, sustainable production and consumption, digital transformation to enhance the efficient use of natural resources, raw materials, fuel, and materials while protecting the environment, promoting green economy, circular economy, and digital economy.

4. Support and create favorable conditions for organizations and individuals from all economic sectors to invest in developing sustainable industrial and small-scale industrial production, enhancing competitiveness, and effectively implementing the process of international economic integration.

Chapter II

POLICIES FOR PROMOTING SMALL-SCALE INDUSTRY

Article 4. Contents of Promoting Small-Scale Industry Activities

1. Support vocational training according to the needs of rural industrial establishments to create employment and improve workers' skills. The programs and forms of vocational training mainly include: apprenticeship, skill transmission, practice sessions; programs for updating and improving knowledge and occupational skills; technology transfer programs.

2. Support the enhancement of enterprise management capacity, awareness, and application of cleaner production, sustainable production and consumption in industrial production through consulting, training, seminars, forums; study tours both domestically and internationally. Support the establishment and expansion of rural industrial enterprises. Support market expansion and product export.

3. Support the construction of technical demonstration models; the application of advanced machinery and equipment, modern science and technology in industrial and small-scale industrial production; building models on applying cleaner production, sustainable production and consumption; support the application of information technology and digital transformation in business operations.

4. Develop rural industrial products through supporting the organization and participation in the selection of outstanding rural industrial products at various levels; supporting the organization of trade fairs and exhibitions of rural industrial products and handicrafts; supporting participation in trade fairs and exhibitions and promotional activities both domestically and internationally. Support organizing competitions for skilled craftsmen and design contests for handicraft products. Support trademark registration; support investment in exhibition rooms to introduce products. Support activities for awarding titles such as People's Artisans and Outstanding Artisans in the field of handicrafts. Support organizing activities to transmit skills, spread experiences in developing crafts from People's Artisans and Outstanding Artisans in the field of handicrafts.

5. Provide advisory assistance to rural industrial establishments in: project investment planning, marketing; production, financial, accounting, human resource management; establishing enterprises; joint ventures and collaborations in business operations; product design and packaging; application of new technologies and equipment. Advise and guide organizations and individuals to access preferential investment policies, land policies, science and technology policies, financial and credit policies, and other preferential policies of the State.

6. Provide information on policies for developing industry and promoting small-scale industry, market information, exemplary models of production and business practices, cleaner production in industry, through forms such as: television and radio programs; publication of newsletters and publications; establishment of databases and online information portals; brochures, leaflets, and other mass media forms.

7. Support investment promotion and development of industrial clusters; environmental treatment in industrial clusters and rural industrial establishments:

a) Support the organization of investment promotion conferences, seminars, and forums in industrial clusters.

b) Support technology and machinery for wastewater and exhaust gas treatment in industrial clusters and rural industrial establishments.

8. International cooperation in promoting small-scale industry, including activities:

a) Building and participating in the implementation of promoting small-scale industry, cleaner production, and sustainable production and consumption activities in international cooperation programs, projects, and plans.

b) Exchange and learn experiences in promoting small-scale industry, encouraging industrial development, managing industrial clusters, cleaner production, and sustainable production and consumption with foreign organizations and individuals in accordance with Vietnamese laws.

c) Enhance the capabilities and qualifications of staff working in promoting small-scale industry through international cooperation programs and overseas study and survey programs.

9. Enhance management capacity and organization of promoting small-scale industry activities:

a) Develop programs, materials, and organize training, seminars, and professional upgrading for staff working in promoting small-scale industry.

b) Organize domestic study tours and experience exchanges; specialized seminars and conferences to evaluate and summarize promoting small-scale industry activities; establish, maintain, and disseminate databases and online information portals on promoting small-scale industry and cleaner production.

c) Invest in infrastructure and work tools for public institutions responsible for promoting small-scale industry tasks at regional and provincial levels. Establish and maintain a network of promoting small-scale industry volunteers.

d) Develop phased promoting small-scale industry programs; annual promoting small-scale industry plans.

đ) Inspect, monitor, and guide the implementation of promoting small-scale industry programs, plans, and projects.

Article 5. List of industries and trades eligible for industrial promotion policies

1. Organizations and individuals investing in production in the following industries and sectors shall enjoy industrial promotion policies as prescribed in Article 4 of this Decree:

a) Processing industry of agriculture, forestry, fishery products, and food processing.

b) Industries serving domestic consumption and export, replacing imported goods.

c) Chemical industry serving agriculture; production of construction materials saving mineral resources; biotechnology, environmental industry, industries transitioning from green industry, low-emission and low-carbon industries, environmentally friendly energy industry.

d) Mechanical industry; supporting industry; textile and footwear industry; high-tech, clean industry consuming little energy, generating high added value, and sustainable development.

đ) Small-scale handicrafts and traditional fine arts crafts at localities that need to be preserved and developed.

e) Application of cleaner production, sustainable production and consumption; environmental treatment in clusters of small-scale industrial zones and rural industrial establishments.

g) Application of information technology, digital transformation.

2.[17] (Repealed)

Article 6. Priority Principles

1. Priority areas: Prioritize programs and projects implemented in areas with difficult socio-economic conditions and extremely difficult conditions as stipulated by law; communes in the plan to implement the National Target Program on New Rural Development; mountainous, island, border land counties; regions inhabited by ethnic minorities; poor counties as defined by the Government.

2. Priority industries and trades:

a) Prioritize programs and projects supporting the development of mechanical industry, chemical industry serving agriculture; processing industry of agriculture, forestry, and fishery products; supporting industry; application of cleaner production in industry, sustainable production and consumption.

b) Prioritize programs and projects supporting digital transformation, development of outstanding rural industrial products; products under key product development programs; spearhead industries; national, regional, and local key industries; production of products using local raw materials, products with export markets.

c) Prioritize small-scale handicrafts and traditional fine arts crafts that are at risk of disappearing and being lost.

2a. In cases where rural industrial establishments meet the conditions for support as prescribed, priority shall be given to establishments owned by women, those employing many female workers, vulnerable workers, and workers who are ethnic minorities.

3. The level of preferential funding for programs and projects specified in Clause 1 and 2 of this Article must ensure attracting organizations and individuals to invest in developing industry and small-scale industry, applying cleaner production, sustainable production and consumption in priority areas and industries.

Chapter III

ORGANIZATION OF INDUSTRIAL PROMOTION SYSTEM

Article 7. Central Industrial Promotion Organization

1. The Agency for Innovation, Green Transition, and Industrial Promotion is the agency assisting the Minister of Industry and Trade in performing state management functions over industrial promotion activities; organizing the implementation of the annual national industrial promotion program according to the plan approved by the Minister of Industry and Trade.

2. The Minister of Industry and Trade decides to establish some National Industrial Promotion Centers in regions, subordinate to the Agency for Innovation, Green Transition, and Industrial Promotion, to implement national industrial promotion programs in these regions.

Article 8. Local Promotion of Industry Organizations

1. Provincial level (province, centrally governed city): The provincial People's Committee establishes a Promotion of Industry Center, a public service unit under the Department of Industry and Trade, to organize and implement promotion of industry activities.

2.[23] (Repealed)

3.[24] Commune level (commune, ward, special administrative-economic zone) based on requirements and tasks, the provincial People's Committee considers and decides to establish a network of promotion of industry volunteers to implement promotion of industry activities at the commune level.

Article 9. Other Service Organizations for Promoting Industry

1.[25] Other service organizations for promoting industry are public service units not directly under the Department of Industry and Trade but have functions and tasks related to promoting industry as prescribed by the provincial People's Committee, and other organizations not covered by Articles 7 and 8 of this Decree but have appropriate functions, tasks, or capabilities to implement services for promoting industry.

2. These organizations are trained professionally and can participate in programs, plans, and projects for promoting industry organized by state management agencies responsible for promoting industry activities.

Article 10. Treatment for Promotion of Industry Volunteers

Promotion of industry volunteers receive remuneration for promoting industry as prescribed by the Chairman of the provincial People's Committee.

Chapter IV

PROMOTION OF INDUSTRY FUNDS

Article 11. Funds Ensuring Promotion of Industry Activities

Funds for promoting industry activities and funds for applying cleaner production, sustainable production, and consumption in industry (hereinafter referred to collectively as promotion of industry funds) include national promotion of industry funds and local promotion of industry funds.

1. National promotion of industry funds are funds used for promotion of industry activities managed and implemented by the Ministry of Industry and Trade.

2. Local promotion of industry funds are funds managed and used by the provincial People's Committee or the People's Committee [27] at the commune level for promotion of industry activities carried out by local levels.

3.[28] Promotion of industry support funds from the state budget are implemented according to laws on state budget, laws on public investment, and laws on bidding.

Article 12. National Promotion of Industry Funds

1. National promotion of industry funds are formed from the following sources:

a) Annual state budget according to the plan.

b) Sponsorship and contributions from organizations and individuals both domestically and internationally.

c) Other lawful sources as prescribed by law.

2. National promotion of industry funds are used for the following purposes:

a) Expenditure for national promotion of industry activities as stipulated in Article 4 of this Decree.

b) Other expenditures serving national promotion of industry activities.

Article 13. Local Promotion of Industry Funds

1. Local promotion of industry funds are formed from the following sources:

a) Annual budget of the provincial People's Committee, [29], commune-level People's Committee.

b) Sponsorship and contributions from organizations and individuals both domestically and internationally.

c) Other lawful sources as prescribed by law.

2. Local promotion of industry funds are used for the following purposes:

a) Expenditure for promotion of industry activities organized and implemented by localities as stipulated in Article 4 of this Decree;

b) Other expenditures serving local promotion of industry activities.

Article 14. Management of National Promotion of Industry Funds and Local Promotion of Industry Funds

1. Plans and budgets for national promotion of industry funds are developed by the Ministry of Industry and Trade, incorporated into the annual budget plan of the Ministry of Industry and Trade, and submitted to competent state agencies as prescribed by law.

2. Plans and budgets for local promotion of industry funds are developed by the provincial People's Committee, [30], commune-level People's Committee, incorporated into the annual budget plan of their locality, and submitted to competent authorities for approval as prescribed by law.

3. Annually, state management agencies for promoting industry develop budget estimates simultaneously with the budget development process, submit them to financial agencies at the same level for consolidation into budget allocation proposals for review and decision-making by competent authorities as prescribed by the State Budget Law.

4.[31] The establishment, implementation, and settlement of promotion of industry funds from the state budget are carried out according to laws on state budget, laws on public investment, laws on bidding, and guiding documents.

5.[32] (Repealed)

Chapter V

STATE MANAGEMENT OF PROMOTION OF INDUSTRY ACTIVITIES

Article 15. Responsibilities of Ministries and Sectors

1. The Ministry of Industry and Trade assists the Government in performing state management functions over the promotion of industry activities according to the following contents:

a) Drafting and submitting to competent authorities for issuance, or issuing within its authority, legal normative documents on promoting industry activities.

b)[33] Building and approving the National Industry Promotion Program for each phase. Organizing implementation and guiding organizations and individuals related to implementing industry promotion activities according to the approved program.

c)[34] Building and organizing implementation of annual national industry promotion plans and projects ensuring consistency with the National Industry Promotion Program for each phase that has been approved.

d) Serving as the focal point for coordinating with other ministries, sectors, and localities in guiding and resolving issues related to industry promotion activities.

đ) Cooperating with domestic and foreign organizations and individuals to attract capital and resources to serve industry promotion activities.

e) Organizing inspections, audits, handling complaints and denunciations in national industry promotion activities.

g) Monitoring, evaluating comprehensively, and reporting annually to the Prime Minister on the implementation of industry promotion programs and plans nationwide.

1a.[35] Based on the National Industry Promotion Program for each phase and the annual national industry promotion plan approved by the Ministry of Industry and Trade, based on proposals from the Ministry of Industry and Trade and relevant ministries and sectors, the Ministry of Finance will aggregate and allocate within the annual budget estimate of the central government, submitting to the competent authority for consideration and decision in accordance with the Law on State Budget, Law on Public Investment and guiding documents; guiding the establishment, management, and use of industry promotion funds.

2. The Ministry of Planning and Investment, in collaboration with relevant ministries and sectors, aggregates and reviews to submit to the Government for allocation of funds from the central government's development investment budget to construct headquarters and equipment for public service units tasked with national industry promotion[36] in various regions, and to support construction of headquarters and equipment for industry promotion centers in localities facing difficult socio-economic conditions as stipulated by law.

3. The Ministry of Home Affairs, in collaboration with the Ministry of Industry and Trade, guides the functions, tasks, powers, organizational structure, and staffing of public service units tasked with provincial-level industry promotion[37].

4. Ministries, ministerial-level agencies, and government agencies within their respective duties and powers have the responsibility to coordinate with the Ministry of Industry and Trade in performing state management functions over industry promotion activities as prescribed.

Article 16. Responsibilities of Provincial People's Committees and Municipal People's Committees under Central Government

1. Provincial People's Committees perform state management functions over industry promotion activities within their jurisdiction, having the following tasks and powers:

a)[38] Drafting and submitting to competent authorities for issuance, or issuing within their authority, policies, legal normative documents on industry promotion that comply with laws and local conditions.

b) Building, approving, and organizing implementation of the local industry promotion program for each phase and annual plans and projects at the local level.

c) Deciding on forms of support from local industry promotion funds for industry promotion activities specified in Article 4 of this Decree as prescribed.

d) Ensuring local government budget funds to organize implementation of industry promotion activities at the local level in accordance with this Decree.

đ)[39] Directing the building and aggregation of programs, plans, and projects using national industry promotion funds.

e) Organizing inspections, audits, handling complaints and denunciations in industry promotion activities within their jurisdiction.

g) Engaging with domestic and foreign organizations and individuals to attract capital for local industry promotion activities.

h) Balancing local government budget funds to invest in constructing headquarters, equipment, and working tools for public service units tasked with provincial-level industry promotion[40] as prescribed.

i) Monitoring, evaluating, and quarterly reporting to the Ministry of Industry and Trade on local industry promotion activities.

2.[41] The Department of Industry and Trade serves as the advisory body assisting the Provincial People's Committee in performing state management functions over local industry promotion activities; it is responsible for drafting and submitting to the Ministry of Industry and Trade for approval programs, plans, and projects using national industry promotion funds; directing, guiding, and inspecting the implementation and use of industry promotion funds within its jurisdiction; and organizing implementation of national industry promotion tasks assigned.

Article 17. Rewards and Handling of Violations

1. Annually, the Ministry of Industry and Trade and the People's Committees of provinces and centrally governed cities shall organize summaries, evaluations, lessons learned, and rewards for organizations and individuals with outstanding achievements in promoting industry.

2. Organizations and individuals who violate the provisions of this Decree shall be subject to disciplinary action, administrative penalties, or criminal prosecution, depending on the nature and severity of the violation, and if damage is caused, they must compensate according to the law.

Chapter VI

IMPLEMENTING PROVISIONS

[42]

Article 18. Effective Date

This Decree takes effect from July 5, 2012, and replaces Government Decree No. 134/2004/NĐ-CP dated June 9, 2004, on encouraging rural industrial development.

Article 19. Responsibility for Implementation

1. The Ministry of Industry and Trade is responsible for guiding and organizing the implementation of this Decree.

2. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial and centrally governed city People's Committees are responsible for implementing this Decree./.

 

Place of Receipt: - Office of the Government (for publication in the Official Gazette); - Government Portal Website (for posting online); - Ministry of Justice (for monitoring); - Vietnam Economic Times (for publication on the Ministry of Industry and Trade’s Electronic Portal); - Units under the Ministry; - Legal Department (for publication on the National Legal Information System); - File: VT, PC (02b).

CERTIFIED CONSOLIDATED DOCUMENT DEPUTY MINISTER DEPUTY MINISTER Nguyen Sinh Nhat Tan