Sci-Tech

Vietnam offers up to 50% of initial investment costs for semiconductor and AI investors

The Government has issued a decree allowing support of up to 50% of initial investment costs for businesses engaging in semiconductor and AI research and development (R&D) projects.

PM Pham Minh Chinh and CEO of Nvidia Corporation Jensen Huang (Photo: VNA)
PM Pham Minh Chinh and CEO of Nvidia Corporation Jensen Huang (Photo: VNA)

Hanoi (VNS/VNA) - The Government has issued a decree allowing support of up to 50% of initial investment costs for businesses engaging in semiconductor and AI research and development (R&D) projects.

This support is outlined in Decree 182, which was recently enacted to establish, manage and implement the Investment Support Fund.

Under the decree, businesses eligible for support must have no tax or budget-related debts. Their R&D investment projects must positively impact the innovation ecosystem and contribute to the development of groundbreaking technologies and products for Vietnam.

The R&D centre projects must also align with the list of prioritised high-tech industries and require a minimum investment capital of 3 trillion VND (117.78 million USD), with at least 1 trillion VND disbursed within three years of receiving the investment decision.

Beyond the exclusive support for semiconductor and AI giants, other tech enterprises are also eligible for general assistance. These include high-tech enterprises, firms with high-tech product manufacturing projects and those investing in R&D centres or applying advanced technology.

General support includes funding for training and workforce development, R&D costs, fixed asset investments, high-tech product manufacturing and infrastructure development. Other cases are decided by the Government.

The Investment Support Fund is a national fund managed by the Ministry of Planning and Investment. It is tasked with receiving, managing and using the State budget and other legal resources to provide financial aid to businesses.

Before this decree was introduced, Vietnam missed out on several investment projects from global giants.

In a 2024 report on drafting the decree, the Ministry of Planning and Investment revealed that numerous major corporations had looked into investment opportunities in Vietnam but shifted to other countries due to the lack of specific regulations.

Some large-scale high-tech projects also stalled, awaiting policy responses, and paused new investments or expansions in the absence of suitable support measures. For instance, LG temporarily suspended its plan to invest in a new 5 billion USD electronic device manufacturing project./.

VNA
#semiconductor #research and development #Investment Support Fund #R&D investment projects Vietnam
Follow VietnamPlus

Post-pandemic recovery

Related News

Production of “Made in Da Nang” tablets with a localisation rate of nearly 60% at the Trung Nam EMS factory in the Da Nang IT Park. (Photo: VNA)

Greater efforts needed to boost semiconductor industry’s growth

Minister of Planning and Investment Nguyen Chi Dung, who is also deputy head of the National Steering Committee for Semiconductor Industry Development, emphasised that the committee will continue to settle difficulties and bottlenecks to turn the semiconductor industry into a major driver of Vietnam’s growth in the new era.

Vietnam is now home to 174 foreign-invested projects with a total registered capital of nearly 11.6 billion USD, (Photo: vneconomy.vn)

Vietnam home to 174 FDI projects in semiconductor sector

Vietnam has emerged as a burgeoning hub for the semiconductor industry, now home to 174 foreign-invested projects with a total registered capital of nearly 11.6 billion USD, according to Minister of Planning and Investment Nguyen Chi Dung.

Prime Minister Pham Minh Chinh speaks at the first meeting of the National Steering Committee for Semiconductor Industry Development on December 14, 2024. (Photo: VNA)

Incentive mechanisms needed for semiconductor industry: PM

Prime Minister Pham Minh Chinh, Head of the National Steering Committee for Semiconductor Industry Development, urged the development of incentive mechanisms and policies to promote the development of the semiconductor industry, while chairing the first meeting of the committee in Hanoi on December 14 morning.

See more

Viettel officially launches 5G chipset and Human AI. (Photo: VNA)

5G revolution propels nation into Industry 4.0 era

Vietnam’s launch of 5G mobile services last year has opened up new space for socio-economic development while marking a significant leap forward in its digital transformation journey and Industry 4.0 aspirations.

Two international undersea cables are still facing issues. (Illustrative image. Source: cnbc)

Undersea cable problems affect Vietnam’s Internet connections

Despite the full restoration of the Asia-Africa-Europe-1 (AAE-1) undersea cable, two other international undersea cables are still facing issues, which are affecting Vietnam’s internet connection speed and service quality to international destinations.

Delegates at the launch of the National Policy Communication Network. (Photo: VNA)

MIC urged to promote digital infrastructure, AI application

Deputy Prime Minister Ho Duc Phoc has urged the information and communications sector to focus on developing digital infrastructure, strongly accelerate the application artificial intelligence (AI) and promote the digital industry, contributing to the whole country’s efforts to advance to a new era of prosperity and growth.

Those in the Top 10 science and technology events of 2024 receive certificates of recognition from the organising committee. (Photo: VNA)

Top ten science-tech events of 2024

The Vietnam Science and Technology Journalists’ Club has unveiled a list of the top 10 sci-tech events of 2024, selected by reporters and editors of press agencies nationwide.

Users look for smartphones that support 5G connection at a store in Phan Rang - Thap Cham city, Ninh Thuan province. (Photo: VNA)

Budget smartphone sales hit two-year high on 2G shutdown

Budget smartphone segment, priced under 5 million VND (200 USD), accounted for about 51% of the total industry revenue in the third quarter of 2024, marking the highest share since the first quarter of 2022, according to Vietnam Handset Market Tracker.

At the 5G service launching ceremony (Photo: VNA)

Vinaphone launches fastest 5G service in Vietnam

Vinaphone, the mobile network operator under the Vietnam Posts and Telecommunications Group (VNPT), has launched its official 5G service offering ultra-fast speed and unparalleled experience for both individual users and businesses alike.

Dr. Dao Duc Cuong from the mechanical, engineering and energy faculty of the University of Bradford of the UK (Photo: VNA)

Vietnam can partner with UK in developing nuclear power: Expert

Vietnam should research the feasibility of applying small modular nuclear reactor technology that the UK is currently working on, according to Dr. Dao Duc Cuong from the mechanical, engineering and energy faculty of the University of Bradford of the UK.

Vietnamese delegates at Coventry university (Photo: VNA)

Vietnam, UK share experience in research impact assessment

A delegation led by Vietnam’s Ministry of Science and Technology (MoST) visited the UK from December 7 to 18 to learn experience in scientific research assessment under an in-depth training programme organised by the University of Portsmouth and the Vietnamese Intellectual Society in the UK and Ireland (VIS).