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1.13. The countercyclical fiscal policy implemented in recent years enabled Viet Nam to lower government and public debts in relation to GDP, creating some fiscal space to deal with short- or long-term structural challenges, such as the ones that have arisen from the COVID-19 pandemic, SOEs' and banking sector contingent liabilities, and climate change. (...)

Box 1.1 Fiscal measures introduced to support the economy and counter the effects of the COVID-19 pandemic
Fiscal measures
The Government introduced a fiscal support package (Decree No. 41/2020/ND-CP of 8 April 2020 on Extending the Deadlines of Tax and Land Rental Fee Payments for Companies, Individuals, and Business Households (Taxpayers) Affected by COVID-19). The main measures include:
• deducting 30% of the environmental protection tax on jet fuel from August to December 2020

Table 1.5 Inward foreign investment stock by sector, 2019
Sector: Water supply, sewerage, waste management and remediation activities (WAT)
No. of projects: 53
Total capital: 2,372.13

2.69. A foreign investor is defined by the Investment Law as any organization established in accordance with foreign laws and conducting business investment activities in Viet Nam. Article 9 of the Law stipulates the protection of foreign investors from nationalization or confiscation through administrative measures, and establishes a list of exceptional reasons [58] for expropriation by the State subject to compensation. (...)

[58] Exceptional reasons include national defence and security, national interests, states of emergency, and prevention of, or recovery after, natural disasters.

2.70. Article 6 of the Investment Law classifies restricted investment activities for national and foreign investors in banned [59] and conditional businesses. (...).

[59] Trade in specific narcotic substances, chemicals and minerals, and wild fauna and flora species are listed as banned activities in Appendices 1, 2, and 3 of the 2014 Investment Law.

2.71. (...) Decree No. 118/2015/ND-CP (guidelines for some articles of the Law on Investment), issued on 12 November 2015, provides further details on conditions that might apply to investment, such as licences, certificates of eligibility (...) . Investment projects that have a significant environmental impact, use forest or rice cultivation lands (more than 500 hectares), or relocate people (20,000 in mountainous areas or 50,000 elsewhere) require approval by the National Assembly. (...).

2.74. Regarding approval, Articles 33 to 35 of the Investment Law provide guidance on the criteria to be used by the approving authorities (People's Committee, Prime Minister, or National Assembly); they include the necessity of the project, (...) environmental protection issues. (...) The assessment of these criteria by the relevant approving authority varies according to the nature of each investment project.

2.75. Besides investment conditions in the 243 sectors mentioned above, additional conditions for foreign investors might apply in some sectors. (...) Projects with foreign participation in sea transport, telecommunications services with network infrastructure, afforestation (...) may require the approval of the Prime Minister.

2.81. Decree No. 11/2016/ND-CP, as amended by Decree No. 140/2018/ND-CP, details the provisions and procedures for contracting foreign workers. (...) Workers in 11 service sectors [71] can transfer within their companies and work in Viet Nam.

[71] These sectors are business, communication, construction, distribution, education, environment, finance, healthcare, tourism, cultural entertainment, and transport.

2.83. To stimulate private investment, the current legal framework allows for the granting of investment incentives (Chapter 3 of the Investment Law), including reductions in enterprise income taxes, exemptions from import duties on supplies and components for investment projects, and exemptions or reductions of land rentals or use levies. Selected activities [72] are eligible for investment incentives, as well as projects located in industrial zones and economic zones (Section 3.2.4). Also, supporting industries might benefit from preferences in investment credits, land and water surface rents, and VAT rates.

[72] Activities eligible for investment incentives include high-tech activities; production of clean and renewable energy; (...) forest planting and protection; waste management; (...) and biotechnology production.