Hanoi encourages semiconductor investment

Hanoi will create conditions for domestic and foreign investors to develop the semiconductor industry in the city and the whole country, said Deputy Chairman of Hanoi People's Committee Nguyen Manh Quyen at the seminar "Development of Semiconductor Ecosystem and Connection for Investment in Hanoi" on September 27 in Hanoi.

Delegates at the conference. Photo: The Hanoi Times

He stated that the semiconductor industry is of great interest to the Government and the Prime Minister as it enhances Vietnam's participation in regional and global value chains and the development of high technology, electronics, semiconductors, financial centers and innovation.

"Prime Minister Pham Minh Chinh encouraged US semiconductor companies to deepen and expand their investments in Vietnam at various stages, including infrastructure development, technology transfer, design, production, and distribution," Quyen said.

At a meeting with Semiconductor Industry Association (SIA) CEO John Neuffer and executives from leading US semiconductor companies in Washington on September 19, Pham Minh Chinh acknowledged their contribution to promoting Vietnam-US bilateral relations.

This cooperation should also include human resource training involving businesses and research and training institutions from both countries. This approach will help enhance the quality of human resources and capabilities of Vietnamese enterprises and progressively integrate Vietnam into the global semiconductor industry's value and supply chain, covering various stages from design and assembly to packaging, testing and production.

For his part, US President Joe Biden sees an opportunity to strengthen the relationship between the two countries in various fields, including investment and innovation, for shared prosperity.

The US is willing to cooperate with and support Vietnam in chip technology, semiconductors, innovation, green transition, and human resource development, with a focus on deeper engagement in regional and global value chains, he said at a Vietnam-US High-Level Conference on Investment and Innovation chaired by Prime Minister Pham Minh Chinh in early September.

According to Minister of Planning and Investment Nguyen Chi Dung, semiconductor giants such as Intel, Amkor, Marvell, Global Foundries, and the Semiconductor Industry Association (SIA) are working together to develop chip and semiconductor ecosystems and will establish a joint training and research center for chip and semiconductor product design in Vietnam.

Hanoi will be the base for developing the semiconductor industry for domestic and foreign investors.

Hanoi also focuses on attracting investment in high-tech fields, including the semiconductor industry. In addition, the city is concentrating on developing 25 industrial zones, 10 of which are already occupied and operational.

The remaining 15 industrial zones are planned for investment, infrastructure development, and support systems to attract investment.

In recent years, Hanoi has adopted specific policies to attract foreign investment and support enterprises to invest and operate in the city, said Vu Duy Tuan, deputy director of the Hanoi Department of Planning and Investment.

Hanoi has a selective approach to attracting investment, prioritizing projects in high-tech, clean-tech, and environment-friendly sectors. He added that it also encourages participation in global value chains with products of high commercial value.

Tuan said the city is ready to assist enterprises in project implementation, managing investment procedures, and ensuring the supply of basic infrastructure services such as electricity, water, sewage treatment, waste management, and logistics. In addition, the city actively supports enterprises in training high-quality human resources to serve investment projects.

Currently, industrial enterprises in Hanoi enjoy investment incentives such as exemption from corporate income tax for the first four years, a 5% tax rate for the next nine years, and a 10% tax rate for the next 15 years.

Hanoi also exempts import duties on imported goods for fixed assets, raw materials and components used in investment projects according to the approved list, according to the deputy director of the city's Department of Planning and Investment.

The city has policies to reduce land lease and land use fees, provide support for enterprises to access loans with preferential interest rates, participate in trade fairs and exhibitions, logistics services and product branding.

Regarding policies, Deputy Chairman Nguyen Manh Quyen said the Capital City Law and Government Decree No. 74 are being revised and refined to facilitate the development of the semiconductor industry.

Leading multinational companies in the semiconductor manufacturing sector, including Foxconn, Synopsys, Marketech International, and MediaTek Capital, attended the seminar to discuss and propose solutions and policies to develop the semiconductor industry and encourage domestic and foreign investment.