Hanoi should speed up admin process to attract semiconductor investments: expert

Hanoi should speed up processing of administrative procedures for foreign investments by tech giants, says Prof. Nguyen Mai, chairman of the Vietnam’s Association of Foreign Invested Enterprises (VAFIE).

Mai stressed at a recent conference on semiconductor investment that Hanoi had not fully utilized its strengths like the availability of universities, experts and businesses to develop its economy in general and semiconductor sector in particular.

Noting that many global tech giants were drafting plans to invest tens of billions of USD in Vietnam’s semiconductor and digital technology industries, he said: “Hanoi should proactively work with the Ministry of Planning and Investment to welcome suitable projects.”

He pointed out that global tech giants’ biggest concern was quick processing towards early implementation of projects, even more than tax breaks. Slow processing can dissuade them from investing, he cautioned.

Hanoi has cut many administrative procedures but needs to do more, Mai added.

He also urged Hanoi authorities, including the Department of Planning and Investment, to compile and announce a list of prioritized investment projects. The list should provide details including project scale and incentives.

While Vietnam’s GDP growth reached 6.43% in the first half of 2024, Hanoi’s pace was lower at 6%, Mai noted. The capital city’s accumulated foreign direct investment (FDI) attraction was also modest at $41.17 billion as of end-2023, or 8.8% of the country’s overall figure.

He said the city was hampered by slow innovation and updating of its economic model, as also weak collaboration between municipal authorities and centrally-run agencies, such as institutes and universities.

To further utilize the capital city’s advantages and attract more FDI into high-tech areas like semiconductors, blockchain, artificial intelligence (AI) and big data, Hanoi authorities should work more closely with the Ministry of Planning and Investment, he added.

A former Vice Chairman of the State Committee for Cooperation and Investment, now the Ministry of Planning and Investment, Mai said conferences have become a limited means for investment promotion.

The capital city should focus on improving its infrastructure, including traffic network, energy supply, communications and data centers to attract investments.