To let semiconductor and AI "eagles" come to Vietnam to "nest"

This is a highlight of Decree 182/2024/ND-CP, and at the same time, a milestone in the country's high-tech development journey, expected to attract a large number of "eagles" in the fields of semiconductors and AI to Vietnam.

Support initial investment costs up to 50%

The Government has just issued Decree 182/2024/ND-CP regulating the establishment, management and use of investment support funds. This Decree takes effect from December 31, 2024, applicable from fiscal year 2024. Accordingly, enterprises with investment projects in R&D centers in the fields of semiconductors and AI are eligible for support for initial investment costs, up to a maximum of 50%.

Production activities at Hoa Lac High-Tech Park, Hanoi . Photo: Pham Hung

To receive support, high-tech enterprises must have an investment project with a minimum capital scale of VND 12,000 billion or achieve a minimum project revenue of VND 20,000 billion/year. Enterprises with high-tech product manufacturing investment projects, enterprises with high-tech application projects must have a minimum project capital scale of VND 12,000 billion or achieve a minimum project revenue of VND 20,000 billion/year. Enterprises with high-tech product manufacturing investment projects, enterprises with high-tech application projects investing in the chip industry, semiconductor integrated circuits, AI data centers must have a minimum project capital scale of VND 6,000 billion or achieve a minimum project revenue of VND 10,000 billion/year.

In particular, enterprises with microchip design projects do not have to meet the criteria on capital scale or revenue stipulated in this Decree, but must commit to employing at least 300 Vietnamese engineers and managers after 5 years of operation in Vietnam. At the same time, each year, Vietnam must be supported to train at least 30 high-quality engineers in the field of microchip design... Enterprises that meet the prescribed conditions and criteria will be supported with up to 50% of the initial investment cost of the project, but not exceeding the financial resources of the Investment Support Fund. The Investment Support Fund is under the Ministry of Planning and Investment , operating under a model similar to a public service unit, according to separate regulations on organization and operating mechanism in this Decree.

Dr. Pham Van Dai, Fulbright University Vietnam, said that the Investment Support Fund model under Decree 182 is quite popular in the world, a tool used by the Government to support economic growth and development. "Investment Support Funds often bring many great benefits to society in addition to the benefits for investors" - Mr. Pham Van Dai clearly stated.

Experts say that Decree 182/2024/ND-CP is a breakthrough in attracting investment in the high-tech sector in Vietnam, especially in the semiconductor and artificial intelligence industries. This Decree provides a very attractive support mechanism for enterprises investing in high technology.

Milestone in the journey of high technology development

It can be seen that Decree 182/2024/ND-CP is not simply a financial support policy but lays the foundation for a strong transformation of the economy in the digital age. Dr. Nguyen Quoc Viet - Deputy Director of the Vietnam Institute for Economic and Policy Research (VEPR) also said that this support policy is a very positive step forward, helping to attract large investments in key industries such as semiconductors and AI. Technology enterprises now have more opportunities to develop strongly, contributing to the innovation ecosystem.

 

Decree 182 is a “strategic initiative” of the Government, as it demonstrates its commitment to attracting substantial investment into the Vietnamese economy while, at the same time, enhancing innovation capacity.

Deputy General Director of Tax and Legal Advisory Services of Deloitte Vietnam Bui Ngoc Tuan

"In the immediate future, it is necessary to reform and streamline the State apparatus towards effectiveness, efficiency, modernity, transparency, ease of understanding and implementation to reduce business risks and compliance costs. In the long term, it is necessary to develop strategies and implement development policies with goals, focus and key points... Decree 182 can be said to be an important and practical milestone in the journey of building a semiconductor and high-tech industry. At the same time, it is necessary to ensure effective disbursement of public investment" - Dr. Nguyen Quoc Viet emphasized.

Sharing about this issue, businesses said that through Decree 182, it will create a more attractive investment environment, helping businesses easily make decisions to expand their operations. Dr. Dao Quang Thuy - Head of the Department of Science and Technology Enterprise Development, Department of Market Development and Science and Technology Enterprises (Ministry of Science and Technology) emphasized that supporting up to 50% of the initial investment costs for research and development (R&D) projects in the semiconductor industry and artificial intelligence (AI) will solve the urgent problem of attracting large investors to Vietnam, developing satellite companies located in Vietnam, avoiding the situation of only coming to survey and then going to build elsewhere.

In addition, it creates strong competitive appeal for Vietnam in the race to attract global investment, especially in the context that other countries are also promoting their strategy of semiconductor industry autonomy, increasing production value and affirming their position in the global value chain.

However, many experts and businesses also believe that the minimum investment scale and revenue requirements can be a barrier for small and medium-sized enterprises. Therefore, there should be separate support policies for these enterprises, especially in building R&D centers, helping them improve technology and create their own products for the market.

In particular, in the context of increasingly fierce global competition in the field of modern technology, businesses believe that Decree 182 will create more favorable conditions for disbursement and access to support funds, contributing to making Vietnam an attractive destination for the high-tech industry as well as attracting technology "eagles" in the world.

The issuance of Decree 182/2024/ND-CP demonstrates the Government's determination to promote investment in key sectors, aiming to enhance competitiveness and raise the level of innovation of the Vietnamese economy in the coming decade. This Decree is also expected to create a spillover effect, increasing labor productivity. Thereby, enhancing Vietnam's position on the global technology map, especially in the context of fierce competition from other countries in the region.

 

Decree 182/2024/ND-CP clearly stipulates two main types of support that the Investment Support Fund will provide. The first is the annual cost support policy, under which the Fund will provide financial support to enterprises operating in the high-tech sector and research and development centers. Eligible costs for support include: human resource training and development costs, research and development costs, fixed asset investment costs, high-tech product manufacturing costs, social infrastructure investment costs, and other cases decided by the Government. The second is the initial investment cost support policy, for enterprises with research and development centers in key industries such as semiconductors and artificial intelligence, areas that require large investments in facilities and technology to reduce financial risks and create a solid foundation for long-term development.

Source: https://kinhtedothi.vn/de-dai-bang-ban-dan-ai-ve-viet-nam-lam-to.html