The Vietnamese government has approved funding of 12.8 trillion VND ($500 million) to build a small-scale semiconductor chip manufacturing plant, with the goal of developing a domestic chip industry and ensuring supply chain resilience.

Nguyen Khac Lich, director of the Department of Information and Communications Technology, stated that the government seeks to attract private investments in local semiconductor manufacturing by offering financial incentives to companies.

He added that the government would support 30 percent of the total investment directly from the central budget, provided if the plant begins production before December 31, 2030. The total support amount would not exceed 10 trillion VND ($391.6 million).

In addition, up to 20% of the enterprise's taxable income can be used for reinvestment in the plant's development. Furthermore, land for the semiconductor factory will be allocated without going through public auctions.

The Prime Minister will directly oversee the selection of private companies to partner with the government on this initiative.

"To accelerate semiconductor research, design, and production, Vietnam will invest in a state-supported semiconductor fabrication facility, strengthening its long-term vision of achieving technological self-sufficiency by 2050,"- he said highlighting  that the initiative aligns with Vietnam’s Semiconductor Development Strategy to 2030, recently signed by the Prime Minister.

The Vietnamese government has set an ambitious goal of training 50,000 semiconductor engineers by 2030, including:

15,000 engineers for semiconductor design
35,000 engineers for semiconductor manufacturing

Countries like the United States, South Korea, and Japan have already pledged to strengthen chip partnerships with Vietnam, viewing it as a strategic alternative to China and Taiwan.

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