Decree 182 in Vietnam offers up to 50% support for semiconductor and AI R&D projects, aiming to establish the country as a high-tech investment hub.
 |
| Vietnam's Flag. Image: ChicHue |
Hanoi, Vietnam — January 4, 2025:
Vietnam has unveiled a new set of financial incentives designed to attract investment in semiconductor and artificial intelligence (AI) research and development (R&D). The initiative, detailed in Decree 182, provides support that can cover up to 50% of initial investment costs. This move aims to stimulate the growth of high-tech industries, particularly in cutting-edge technologies like semiconductors and AI.
The decree establishes the Investment Support Fund, which will assist businesses that meet specific criteria, including having no tax or budget-related debts. To qualify for support, R&D projects must align with the country's innovation objectives and contribute to technological advancements that benefit Vietnam. Eligible semiconductor and AI projects must involve a minimum investment of VND 3 trillion (approximately $117.78 million), with at least VND 1 trillion to be spent within three years of project approval.
While the decree primarily targets the semiconductor and AI sectors, it also extends support to other technology companies. This includes businesses engaged in high-tech manufacturing, R&D, or those adopting advanced technologies. The funding will cover various areas, such as training, R&D expenses, fixed asset investments, and infrastructure development.
Managed by the Ministry of Planning and Investment, the Investment Support Fund will oversee the allocation and utilization of state funds to assist eligible companies. The introduction of this policy follows Vietnam's recognition of a gap in tailored support, which had previously deterred some major global investors from entering the market.
Notably, LG temporarily halted its $5 billion electronics manufacturing project in Vietnam, citing a lack of specific policy incentives. The new decree aims to eliminate such obstacles, positioning Vietnam as a competitive hub for high-tech investments and ensuring that the country attracts global players in the semiconductor and AI industries.