Vietnam Filming Incentives: What You Need to Know

As international film production increasingly searches for new and affordable locations, many countries have established filming incentives to attract international projects. Filming incentives can include tax rebates, grants, and other financial incentives. Maximizing production budgets and stimulating local industries are two important functions of filming incentives. Although Vietnam's incentives landscape is developing, it is important to understand the current state of incentives, as well as future developments, for future filmmakers considering filming in the country. This article provides background information on current Vietnam filming incentives and what do you need to know.

Why are Incentives Important to International Productions

There are many reasons why incentives are an important and effective tool, including:

• Budget Maximization: Incentives reduce the overall filming cost; this may allow productions to do more on screen, or simply shift dollars to other places.

• Economic Impact: Incentives stimulate local economies by employing film crews, using local services, and promoting tourism spending.

• Competitive Advantage: Countries with good incentive programs become more competitive in the international film production industry.

• Industrial Development: Incentives will help the development and professionalization of the local film industry.

Current State of Vietnam's Filming Incentives

Currently Vietnam does not have a formal, government sanctioned, nationwide film incentives scheme (i.e. Cash Rebate or Tax Credit) like some other established filming destinations. The Vietnamese government is realizing the economic and cultural benefits of luring international productions. There has been ongoing discussion and proposals of future incentive programs, which shows a positive trend.

Even without any formal rebate available, Vietnam has inherent cost benefits that provide a de facto incentive:

• lower costs of labor: filming in Vietnam can be considerably cheaper with competitive rates for local film crew and local support staff.
• low logistics costs: transportation, accommodation, and other logistical costs, are usually cheaper than what producers would pay in many western countries.
• a friendly environment - although there is not a direct financial incentive, the government and local administration is often approving of international productions and assists in the film permit process in Vietnam to grant you all the support you need.

# Types of Incentives (Future potential) If Vietnam did formalize incentives, they would generally fall into one of the categories that already exist internationally:

Cash Rebates: Cash rebates usually involve an incentive of a percentage of a qualified local spend being returned to the production. For example, if a production was to receive a cash rebate incentive of 20%, that means for every dollar spent locally on qualified local spend (crew salaries, equipment rental and accommodation), the production would receive 20 cents back.

Tax credits / Tax exemption: Tax credits generally would reduce a productions tax exposure in the country. This could include exemption on certain tax related to the production or revenue generated within Vietnam

Grants & Funds: Government or cultural institutions may offer grants, or funds to projects aligned to specified cultural objectives or that promote tourism or collaborations with local companies

Co-production treaty: Formal treaties with other countries can provide the opportunity to financially and creatively collaborate with each other, access incentives in each country and share resources.

# Eligibility Requirements (General) Any filming incentives in future Vietnam would likely have eligibility requirements, including but not limited to:

• minimum spend: you may be required to spend a minimum amount within Vietnam.
• cultural test: possibly the project would have to demonstrate having a cultural relationship to Vietnam.
• local hire: certain percentage of the film crew or cast will need to be Vietnamese citizens.
• restricted contents: certain issues may be off limits.

# Application Process

Even without incentives, guidance will be needed in navigating the Vietnamese regulatory environment. In the event that Vietnam does offer incentives, the application process is likely to be complex, requiring comprehensive financial reporting and strict guidelines to follow. This reinforces the need for an experienced local Vietnam fixer and Vietnam production services provider like Fixers in Vietnam, where we keep up to speed on all policy changes and developments, can assist in any application process, and ensure you maximize the benefits received.

# Conclusion Vietnam's filming incentives are in their infancy, however, Vietnam has the inherent cost-effectiveness and an attitude aligned to developing culturally inclusive landscapes for international productions providing a great opportunity for projects. As government explores formal incentive programs and processes, there is an ever-growing appeal of Vietnam as a worldwide filming site. This appeal should be able to be capitalized on by filmmakers who are able to partner with an experienced local production company. Reach out to Fixers in Vietnam now to discuss your project and how we can assist in maximizing your project budget in Vietnam.