Many preferential policies of Da Nang in the field of semiconductor microchips

DNO - On the morning of August 30, Standing Vice Chairman of the City People's Committee Ho Ky Minh informed about development orientations and policies to attract investment in the semiconductor sector of Da Nang at the event "Da Nang Semiconductor Day 2024".

Standing Vice Chairman of the City People's Committee Ho Ky Minh spoke about Da Nang's orientation to attract investors in the semiconductor microchip sector.

Standing Vice Chairman of the City People's Committee Ho Ky Minh said that the semiconductor industry is identified as one of the new important driving forces, laying the foundation for a breakthrough in the city's socio -economic development in the coming time; especially since Vietnam and the United States upgraded their comprehensive strategic partnership.

From October 2023 to present, the city has drastically and synchronously implemented many important steps with the main direction being to focus on developing semiconductor human resources associated with cooperation with large and reputable domestic and foreign enterprises and partners to attract investment, train human resources and form a semiconductor ecosystem in the city.

Based on the analysis of the city's strengths, weaknesses, opportunities and challenges, Da Nang has identified the viewpoint of developing the semiconductor industry in association with the development of the electronics industry, digital transformation and building a smart city; based on research, development and innovation, prioritizing the development of chip design, testing and packaging.

Building a semiconductor innovation ecosystem in Da Nang, optimally exploiting the specific strengths of each type of enterprise, prioritizing cooperation with the world's leading semiconductor corporations to have appropriate participation plans in the value chain, creating a favorable environment to promote research, development, application and commercialization of semiconductor products for domestic and international markets.

By 2030, Da Nang aims to become one of the three largest semiconductor centers in Vietnam, forming a network to train high-quality human resources in semiconductors associated with the synchronous development of the semiconductor ecosystem. Da Nang focuses on three breakthrough directions: policy, human resources and infrastructure.

Specifically, Da Nang focuses on and takes advantage of all resources to train and attract at least 5,000 high-quality human resources for the semiconductor industry, including at least 2,000 design personnel and 3,000 testing and packaging personnel; attracting investment from at least 20 semiconductor design and design service enterprises, including 1-2 packaging and testing enterprises.

On June 26, 2024, the National Assembly passed Resolution No. 136/2024/QH15 on the organization of urban government and piloting specific mechanisms and policies for the development of Da Nang city with specific incentive policies to attract strategic investors and strategic partners in the field of semiconductor microchips.

Specifically, for strategic investors: enterprises will be leased land by the State without auctioning land use rights or bidding to select investors; can choose the form of State land lease with one-time land rental payment for the entire lease term; can include in deductible expenses to determine taxable income for research and development (R&D) activities 150% of the actual costs of this activity when calculating corporate income tax; enjoy priority in customs procedures according to the provisions of the law on customs and tax procedures and receive support of no more than 5% of the total cost of purchasing equipment to support production, costs of moving assets, production lines, equipment, technology, and costs for new investment projects.

For strategic partners: enterprises are directly leased information infrastructure assets by the State without auction; are designated by the State to bid for the purchase of specific equipment; are supported with no more than 5% of the total cost of purchasing production support equipment, costs of moving assets, production lines, equipment, technology, costs for new investment projects; are partially supported with the cost of hiring highly qualified human resources.

To enjoy incentives from strategic investors and strategic partners, enterprises and investors, in addition to meeting requirements on capital, revenue, technology, etc., must sign long-term cooperation agreements with the city in training human resources, transferring technology and expanding investment in the city. This content is specified in detail in Resolution No. 136/2024/QH15 of the National Assembly.

For investment activities in developing semiconductor chips, artificial intelligence, information and communication, science and technology management, and innovation, corporate income tax is exempted for a period of 5 years from the time the payable income tax arises.

Exemption from personal income tax and corporate income tax for organizations with income from transferring shares, capital contributions, and capital contribution rights to innovative enterprises, semiconductor chip activities, and artificial intelligence (not yet offering securities to the public) for a tax exemption period of 5 years from the time of capital contribution to the enterprise.

Exemption from personal income tax for 5 years for income from innovative start-up activities, activities in the fields of design, production, packaging, testing of semiconductor chips, artificial intelligence working at enterprises in the city.

For students and experts in the semiconductor industry, the city supports training and development costs for students majoring in semiconductors; enjoy preferential treatment in terms of income and accommodation costs.

In addition, based on the above-mentioned support and incentive policy orientations, the City People's Committee is urgently completing the draft Resolution regulating policies to support the development of semiconductor microchips and artificial intelligence in Da Nang city; submit it to the City People's Council for approval at the meeting at the end of 2024 for timely promulgation and application from the beginning of 2025.

To prepare infrastructure for semiconductor design in the short term, in addition to focusing on attracting investment in the High-Tech Park and 3 existing concentrated IT Parks, Da Nang strives to continue to put into operation Software Park No. 2 with a floor area of ​​over 90,000 ^m2 by the end of 2024, serving more than 6,000 employees.

The city is also promoting the creation of conditions for domestic technology enterprises and the world's leading semiconductor companies to cooperate in investing in building high-performance computing centers, data centers serving simulation and virtualization of semiconductor chip design; and chip foundry research and development centers.

In addition, focus on accelerating the implementation of procedures for selecting investors to develop infrastructure for specialized semiconductor manufacturing zones in the Free Trade Zone to attract investment projects in the fields of testing, packaging, and enterprises producing materials, components, equipment, etc. in the semiconductor supply chain.

Along with that, the city focuses on attracting investment to develop at least 1 new submarine fiber optic cable station; expanding the transmission capacity of SMW3 and APG fiber optic cables; upgrading and completing the electricity, traffic, and logistics infrastructure in sync with the areas planned for semiconductor industry activities to increase connectivity with regional and global markets.

MAI QUE - QUOC CUONG

Source: http://baodanang.vn/kinhte/202408/nhieu-chinh-sach-uu-dai-cua-da-nang-trong-linh-vuc-vi-mach-ban-dan-3984739/