Vietnam Allocates Over $501 Million for Semiconductor Chip Manufacturing Plant

Key Takeaways

Vietnam plans to invest 12.8 trillion dong ($501.2 million) in a semiconductor manufacturing plant.
The government will provide up to 30% support from the central budget if the plant becomes operational by 2030.
This initiative aligns with Vietnam’s strategy for developing its semiconductor industry until 2030 and beyond.

Investment in Semiconductor Manufacturing

Vietnam is set to invest approximately 12.8 trillion Vietnamese dong, equivalent to $501.2 million, to establish a semiconductor chip manufacturing facility. This investment aims to enhance the country’s capabilities in research, design, production, packaging, and testing of semiconductor chips, according to recent local media reports.

Nguyen Khac Lich, the director of the Department of Information and Communications Technology, emphasized that companies investing in this project would receive substantial support. Specifically, if the semiconductor plant is initiated and becomes operational by December 31, 2030, the Vietnamese government will contribute up to 30 percent of the total investment directly from its central budget, with the maximum support reaching 10 trillion dong (approximately $391.6 million).

Moreover, during the project’s preparation and implementation phases, companies involved will have the opportunity to deduct more than 10 percent, but not exceeding 20 percent, of their taxable income annually. This deduction will be allocated to a technology development fund designated to support the project financially.

The investment comes as part of Vietnam’s broader strategy for developing its semiconductor industry, which was outlined last year. This strategy includes goals leading up to 2030, with an extended vision reaching into 2050. It reflects Vietnam’s ambition to become a significant player in the global semiconductor market, which has become increasingly vital for technological advancements and economic growth.

With this initiative, Vietnam aims to bolster its technological infrastructure and create an environment conducive to innovation and development in the semiconductor sector, paving the way for future growth and investment opportunities in high-tech industries.

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