Hanoi ready to grant huge incentives for semiconductor investors: official

Hanoi stands ready to provide numerous incentives for strategic investors in the semiconductor industry as Vietnam’s capital city looks to become a science-technology hub, an official said.

Speaking at a conference on semiconductor investment on Monday, Nguyen Tran Quang, deputy director of the Hanoi Promotion Agency (HPA), said that Hanoi holds huge potential to develop and attract high-tech investment, including in the semiconductor industry.

A large number of semiconductor companies from the U.S., South Korea, Japan, and European countries have already visited Vietnam to explore investment opportunities, Quang noted.

To ride this trend, the city has been working on improving its investment climate, simplifying administrative procedures, and removing obstacles for businesses, aiming to help them cut operating costs, Quang said.

Vo Xuan Hoai, deputy director of the Hanoi-based National Innovation Center (NIC), said Hanoi is ready to join the race for semiconductor investment with a series of incentives. Going into details, he cited the amended Capital Law, effective from January 1, 2025, which stipulates that innovative startups operating in key science-technology areas can receive financial support for incubation activities.

The law also enables the city government to allocate funds for developing Hoa Lac Hi-Tech Park on its outskirts, with priority given to infrastructure that serves high-tech and science-technology purposes, and building accommodation facilities for laborers in the park.

The law also specifies a series of incentives related to land rent and corporate income tax rates lower than the common level.

Decree 74/2017/ND-CP also clarifies that investment projects within the park are entitled to the highest tax incentives regulated by law, Hoai added.