HCMC – Vietnam’s Government has announced new financial incentives for businesses investing in semiconductor and artificial intelligence (AI) research and development (R&D).
Under Decree 182, issued on December 31, 2024, the Government will provide up to 50% funding for initial investment costs in R&D projects within these sectors.
To qualify for the support, companies must meet certain conditions, including having no tax debt. The projects must also have a significant impact on the country’s innovation ecosystem, promoting the development of new technologies and products.
Additionally, R&D centers must focus on high-tech areas and have a minimum capital investment of VND3,000 billion, with at least VND1,000 billion required to be spent within three years of approval.
The decree also extends general investment incentives to other high-tech industries. These incentives cover training, human resource development, R&D costs, infrastructure investment, and production of high-tech products.
The establishment of a national fund to manage the incentives aims to attract more foreign investment in the country’s technology sector.
The new decree is effective from the 2024 fiscal year and reflects Vietnam’s effort to update its investment policies in response to global market changes.
