Vietnam eyes 24/7 entertainment zones, tax holidays for billion-dollar tourism projects

Vietnam’s draft policies would support tourism projects that bring major investment, create jobs and strengthen priority destinations. The aim is to remove obstacles, attract capital and make tourism a key economic sector. Incentives would focus on Hanoi, Ho Chi Minh City, Da Nang, tourism centers and national tourism areas.

Eligible activities could include high-quality, catalyst and strategic tourism projects. Other supported models include tourism combined with entertainment, culture, sports, healthcare or medical treatment. The draft also encourages community tourism, new air routes, OCOP supply contracts, and artificial intelligence, virtual reality and augmented reality.

Large performing arts complexes, concert halls, festival streets and integrated entertainment zones could operate around the clock under a pilot. However, casinos, prize-winning electronic gaming, betting and real estate components would receive no tourism incentives. Support is intended for tourism activities and priority sectors.

Vietnam’s proposal divides major tourism projects into three incentive tiers. Each tier measures total investment, money committed specifically to tourism components and jobs created. The thresholds are designed to direct support toward projects large enough to influence tourism growth in key areas.

High-quality projects require at least VND3 trillion total investment, including VND1.5 trillion for tourism, and at least 1,000 jobs. Catalyst projects require VND10 trillion total, VND5 trillion for tourism and 1,500 jobs. Strategic projects require VND30 trillion total, VND15 trillion for tourism and 2,000 jobs.

The largest tier could also allow operations for up to 70 years and provide major tax benefits. The National Assembly committee asked the government to explain how these thresholds were chosen and whether the classification criteria are feasible. The proposal excludes casino, betting, gaming and real estate components.

A tax holiday means an eligible investor would owe no corporate income tax for a specified period. Under Vietnam’s draft, strategic tourism projects could receive a full exemption for up to four years. This lowers early operating costs while a large project is being developed or starting business.

After the holiday, the strategic project’s corporate income tax could be reduced by up to 50% for no more than nine years. A catalyst project would instead qualify, on a five-year pilot basis, for a preferential rate as low as 10%. The article compares that rate with Vietnam’s standard 20% rate.

These benefits would apply only to qualifying tourism activities. Strategic projects must meet the VND30 trillion investment and 2,000-job thresholds, while catalyst projects need VND10 trillion and 1,500 jobs. Land-rent exemptions or reductions could also apply to catalyst projects.

The draft would test longer operating hours for selected large-scale cultural and entertainment venues. The eligible group includes performing arts complexes, concert halls, festival streets, integrated entertainment zones and other night-time economy activities. The pilot could last up to five years and permit continuous operation.

These venues would receive more than permission to stay open around the clock. They could follow shortened administrative procedures, reducing the process required for approved activities. They could also obtain one license covering large international art programs and events held regularly, rather than applying again for every edition.

The proposal links these measures to the development of the night-time economy and tourism products. It does not state that every entertainment business would qualify. Eligibility would apply to the specified large-scale venues and activities under the pilot, while the wider draft still excludes casinos, betting and prize-winning electronic gaming from tourism incentives.

If the incentives attract qualifying projects, tourism could receive more capital and large developments could create thousands of jobs. New resorts, entertainment venues and transport links might also increase demand for local products, including goods certified under the OCOP program. Community tourism areas could gain from stronger visitor activity.

The mechanism is a trade-off. Investors would receive tax reductions, exemptions, land support or infrastructure assistance, while the state would fund training and transport connections. Businesses could therefore face lower costs and reach destinations more easily. Local suppliers and workers could benefit if projects use them and meet the proposal’s conditions.

Government tax revenue could fall during tax holidays or reduced-rate periods. Later, larger operations might contribute more tax, jobs and economic activity, but the article gives no forecast. The National Assembly committee specifically asked for an assessment of the benefits from strategic catalyst incentives before approval.

Casinos, prize-winning electronic gaming, betting and real estate would be excluded because the proposed incentives are meant for tourism activities. The draft seeks to channel public support toward projects that develop tourism, create jobs and strengthen priority destinations, rather than toward components that fall outside that purpose.

This restriction would apply even when excluded activities appear inside a larger project. For example, a strategic development could qualify for tourism support only for its eligible tourism components, not for casino or real estate operations. The article also says support should be tied to project results and priority sectors.

The National Assembly’s committee supported keeping these activities outside the incentive system. It warned that unclear or broad support could allow the policy to be used for businesses beyond priority sectors. The committee also urged priority for domestic tourism businesses and asked the government to examine whether the proposed criteria are workable.

Tax incentives are a government tool for reducing the cost of investment. Vietnam’s draft would offer lower corporate income tax holidays, land-rent relief and other support to projects meeting investment and job targets. The goal is to make large tourism developments more attractive while directing them toward selected destinations.

Public infrastructure works through a different channel. Budget funding would support essential facilities and multimodal transport links from international gateways to growth poles, key tourism centers and national tourism areas. Businesses could also receive support for opening new air routes. Better connections can strengthen access to tourism projects and destinations.

Together, these tools address both investor costs and destination capacity. Training money would build tourism skills, while promotion funding could help generate demand. The draft’s stated purpose is to clear bottlenecks and make tourism a key economic sector. Lawmakers still want evidence that the highest incentives will produce sufficient benefits.