Vietnam offers 50% investment subsidy to attract semiconductor and AI investments

The financial support, outlined in a decree which was issued on Dec. 31, applies to projects with a minimum investment of VND3 trillion (US$118 million).

The project developer must disburse at least VND1 trillion of the registered capital within three years of receiving the investment approval.

The developer must not have outstanding tax or debts to the government.

The project must positively impact the innovation ecosystem and foster the development of breakthrough technologies and products.

The government will also provide financial support for other high-tech projects, including the costs of training and talent development, R&D, asset investment, production and infrastructure.

The money for these supports will be sourced from the Investment Support Fund established by the government and managed by the Ministry of Planning and Investment.

Vietnam has previously missed out on billion-dollar investments from multinationals due to the lack of inadequate policies which lack diversity, the ministry has said previously.

Due to the lack of specific incentives in Vietnam, some large companies have not chosen to invest in the country after conducting preliminary studies, it said in a report last year.

Intel shifted a proposed $3.3 billion chip manufacturing project to Poland after Vietnam did not meet its 15% cash support request.

Austria’s AT&S opted for Malaysia due to Vietnam's limited financial support and high-tech labor availability.

LG paused a $5 billion electronics manufacturing project pending supportive policy developments.