Vietnam Enacts Decree to Boost Semiconductor and AI R&D with Investment Support
Hanoi, The Gulf Observer: The Government of Vietnam has issued Decree 182, allowing businesses engaged in semiconductor and artificial intelligence (AI) research and development (R&D) projects to receive financial support of up to 50% of their initial investment costs.
Decree 182, recently enacted to establish and manage the Investment Support Fund, outlines specific criteria for eligibility. Businesses must have no outstanding tax or budget-related debts and demonstrate their R&D projects’ potential to enhance the innovation ecosystem and contribute to groundbreaking technological advancements in Vietnam.
Eligible R&D centre projects must align with the prioritised high-tech industries and require a minimum investment of VNĐ3 trillion (US$117.78 million), with at least VNĐ1 trillion disbursed within three years of receiving the investment decision.
While semiconductor and AI giants receive exclusive support, other high-tech enterprises are also eligible for general assistance. These include companies manufacturing high-tech products, investing in R&D centres, or applying advanced technologies. Support covers workforce training, R&D costs, fixed asset investments, infrastructure development, and high-tech product manufacturing.
The Investment Support Fund, managed by the Ministry of Planning and Investment, aims to allocate State budget and legal resources to aid businesses.
Prior to this decree, Vietnam faced challenges in attracting large-scale investments from global high-tech corporations. A 2024 report by the Ministry of Planning and Investment revealed that many global firms, including LG, postponed or shifted their projects to other countries due to unclear regulations.
