Nghe An will fulfil the energy demand of semiconductor businesses from the U.S., the central province's Chairman Nguyen Duc Trung pledged Thursday.
Trung gave the assurance at a Washington D.C. meeting with John Neuffer, president and CEO of the U.S. Semiconductor Industry Association (SIA).
He reiterated that Nghe An will work with the central government to ensure stable energy supply for industrial activities, especially those of semiconductor firms.
He also said that the province has accorded priority to semiconductor businesses in its efforts to facilitate investment.
Highlighting other Nghe An attractions, Trung mentioned its traffic infrastructure projects including plans to upgrade Vinh airport, build a deep-water seaport to accommodate ships of up to 200,000 tons and complete construction of several expressways connecting with the capital city of Hanoi.
Nghe An stands ready to provide 2,000 hectares in industrial parks and economic zones to facilitate the work of foreign investors, he said, adding that the province was willing to set up an industrial park specifically for semiconductor businesses.
Besides, investments in the Dong Nam Economic Zone will receive the country’s highest preferential policies, he noted. These include a low corporate income tax (CIT) of 5% for 37 years, CIT exemption for the first six years and 50% CIT reduction in the next 13 years. Land and water surface lease fees are also exempted for 22 years and subject to 75% reduction for the remaining project duration.
The central province has 1.6 million people of working age and 40,000-45,000 new additions to the workforce every year, as also many universities, colleges and vocational training centers. The province is seeking training support for the semiconductor industry, Trung said.
The SIA’s Neuffer said Nghe An was making the right moves to attract investment. Apart from energy, the association urged Nghe An to ensure water supply to meet investors’ demand and for Vietnam to join soon the Information Technology Agreement (ITA) of the World Trade Organization (WTO).
Nghe An is an emerging foreign direct investment hub in central Vietnam. The province has so far attracted 130 FDI projects with a total registered capital of $3.85 billion. This includes $1 billion in 2022 and $1.27 billlion in the first 10 months of 2023.
Stable power supply has been a concern for foreign investors. It was cited by Intel as one of the reasons it called off a planned investment expansion in Vietnam, which would have doubled the tech giant’s operations in the country.
Intel made the decision in July, prior to the visit of U.S. President Joe Biden to Vietnam, a Reuters report said.
An unnamed source who attended two separate meetings between U.S. companies and top Vietnamese officials told the news wire service that Intel had raised "concerns about the stability of power supplies and excessive bureaucracy."