Vietnam seeks to lure global chip companies through new incentives

Society – Economy - Ngày đăng : 12:01, 05/09/2024

Vietnam is drawing up a list of incentives for chip companies, ranging from tax breaks to fast-track export processes, as the country draws increasing attention from global players such as Nvidia and Besi, according to Japan’s news service Nikkei Asia.

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The financial newswire points out that the proposed Digital Technology Industry (DTI) Law lists additional incentives like letting firm write off 150% of their research expenses, grants, and expedited visas, as well as 10 years of rent-free land use.

The government is currently introducing rules aimed at seizing upon the opportunity created by the ongoing China-United States tech war, which has forced semiconductor firms and other companies to diversify their supply chains.

However, the Japanese media outlet outlines that the Government may need to consider if the measures are consistent and in line with a new global treaty on minimum taxes.

The enticements are primarily aimed at building on recent Vietnamese efforts to become an established semiconductor player, including by investing in energy, infrastructure, and training.

More broadly, the country has been trying to figure out how to offer enticements, while also complying with a new 15% global tax floor originally proposed by the OECD and backed by more than 140 countries.

Intel previously told Nikkei that, "Vietnam should modernise the incentive policies to support investors in the future to keep Vietnam competitive."

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