Vietnam to issue support decree this year for luring foreign hi-tech investments

Vietnam will issue a decree this year to establish an investment support fund towards boosting foreign capital inflows into the artificial intelligence (AI) and semiconductor industries, says Minister of Planning and Investment Nguyen Chi Dung.

Dung was speaking on Tuesday at a workshop on “businesses and the young generation in the wave of AI and semiconductors” held under the auspices of the Innovate Vietnam 2024.

Earlier discussions on the decree had mentioned that the support would partly cover the costs of workforce development, R&D activities, investments in fixed assets, production of high-tech items, and investments in social welfare infrastructure.

The support decree was deemed a necessary legal framework update in the wake of disadvantages faced by businesses on the levying of the Global Minimum Tax (GMT).

Seven key advantages

Affirming Vietnam’s readiness to welcome and collaborate with global businesses and investors in the target industries, Minister Dung listed seven key advantages that the country possesses.

Firstly, Vietnam has a stable political system and a strong commitment to promoting innovation and high-tech industries.

Secondly, with a population exceeding 100 million, Vietnam is in a “golden period” characterized by a young and dynamic generation. This workforce, well educated in science, technology, engineering, and mathematics (STEM), is also highly skilled in both adopting and advancing technological innovations.

Thirdly, Vietnam has chosen to develop its semiconductor and AI industries based on extensive and practical research. The country has prioritized these sectors as part of a broader strategy to catch up with developed nations.

Fourthly, with existing long-term AI and semiconductor development strategies, the Vietnamese Ministry of Planning and Investment (MPI) has been partnering with relevant ministries and agencies to train a high-quality workforce for the semiconductor and AI sectors. The goal is to train 50,000 engineers by 2030.

Fifthly, Vietnam has developed a robust semiconductor and AI ecosystem in the region with the involvement of global tech giants like Google, Meta, Nvidia, AMD, Qualcomm, Intel, Amkor, Hana Micron, Marvell, and more.

Sixthly, Vietnam has continued to improve its investment policies and legal framework to foster a favorable environment for high-tech enterprises, particularly semiconductor and AI firms.

Lastly, Vietnam has established a national steering committee for semiconductor development chaired by the prime minister. In addition, the country has launched the National Innovation Center (NIC) and three high-tech parks in Ho Chi Minh City, Hanoi, and Danang, offering attractive incentives for semiconductor investors.

Earlier, in its comments on a draft decree for the Vietnam Fund for Investment Support, Intel Products Vietnam (IPV) had proposed simpler administrative procedures and employment regulations.