Speakers at the “Developing Việt Nam’s Semiconductor Industrial Ecosystem” seminar held in HCM City on Thursday. — VNA/VNS Photo

HCM CITY — Việt Nam is advancing plans to become a regional semiconductor hub through sweeping legal reforms and investment incentives aimed at attracting global players and boosting local industry growth.

Hundreds of policymakers, industry experts, and foreign-invested enterprises gathered at the “Developing Việt Nam’s Semiconductor Industrial Ecosystem” seminar in HCM City on Thursday to evaluate the current industry landscape and discuss strategies for growth.

Nguyễn Anh Tuấn, Deputy Director-General of the Information Technology Industry Department under the Ministry of Science and Technology, said semiconductors have become a national priority.

The Government has launched several landmark initiatives, including the National Semiconductor Industry Development Strategy to 2030, with a vision toward 2050, and Resolution 57 on science, technology, innovation, and national digital transformation, he said.

A key milestone is the recently enacted Law on Digital Technology Industry, Việt Nam’s first comprehensive legal framework to support semiconductor growth, he added.

Incentives to attract investment

The law introduces significant incentives for semiconductor firms, including a corporate income tax rate of 5 per cent for up to 37 years, with a full exemption for the first six years and a 50 per cent reduction for the following 13 years.

Qualified professionals benefit from a five-year personal income tax exemption.

Foreign experts working in semiconductors can obtain five-year visas without requiring work permits.

The Government also promises housing and R&D infrastructure support for skilled personnel.

These legal and financial frameworks aim to position Việt Nam as a reliable node in the global semiconductor supply chain.

A national action plan is being prepared to develop the ecosystem and attract investment and talent.

Challenges

While Việt Nam is emerging as a promising destination for chip assembly and testing, with major companies such as Intel, Samsung, Marvell, and Renesas already operating in HCM City, the industry faces systemic challenges.

Dr. Dương Minh Tâm, Vice Chairman of the HCM City Semiconductor Association, noted that the city lacks specialised policies for large-scale projects, streamlined licensing, and sufficient incentives to attract top engineers and experts.

Currently, Việt Nam’s domestic semiconductor industry primarily focuses on chip design, led by companies like FPT Semiconductor, Viettel, and CoAsia.

Manufacturing and packaging remain dominated by foreign-invested enterprises. Academic labs have begun developing MEMS prototypes and basic sensors but remain at an early stage compared to regional competitors.

Intel Việt Nam, one of the sector’s biggest investors, called Việt Nam a “rising centre for chip assembly, testing, and design,” but warned of a large capability gap to meet government targets of 100 chip design firms and 50,000 engineers by 2030.

Intel advocates for stronger cooperation between the Government, universities, industry associations, and businesses.

The Government’s role should include providing a clear long-term vision, attractive investment policies, and improved infrastructure, logistics, and talent retention programmes.

Universities and training institutions should focus more on practical, lab-based education and industry partnerships. Meanwhile, enterprises need to develop local supply chains and strengthen domestic suppliers.

Sustainable ecosystem

Becamex, a leading industrial infrastructure developer, stressed that beyond policies and investments, HCM City must redefine its value proposition in the global semiconductor market by strengthening infrastructure, providing shared services, streamlining administrative procedures, and supporting high-quality workforce development and innovation hubs.

To accelerate growth, Dr. Tâm recommended increasing public investment in semiconductor startups, encouraging large firms to support training and startup incubation, establishing service units to connect design, manufacturing and packaging stages, and expanding international cooperation in innovation.

Despite these challenges, optimism remains high among officials and industry leaders.

They said with legal incentives now in place and growing momentum, Việt Nam has a unique opportunity to deepen its role in the global semiconductor supply chain.

Whether it can become a true regional hub will depend on how quickly and effectively policies are implemented in practice, they added. — VNS