In a strategic move to position Vietnam as a global hub for high-tech innovation, the government has issued Decree No. 182/2024/NĐ-CP on 31st December 2024[1], which establishes the framework for the investment support fund. Effective on January 1, 2025, this fund aims to foster investment in key technological areas, particularly semiconductors and artificial intelligence (AI).
Subjects and Categories Eligible for Investment Support
The Investment Support Fund serves as a crucial tool to foster research and development (R&D) within companies, encouraging further investment in high-tech sectors. Additionally, it aims to promote enterprise investment and development in the fields of AI and semiconductors. This initiative represents a significant milestone in Vietnam’s socio-economic and development strategy. Managed by designated government agencies, the fund operates with transparency, efficiency, and alignment with national priorities, ensured through regular audits and oversight.
The beneficiaries of this policy include: (1) High-tech enterprises; (2) Enterprises with investment projects in the production of high-tech products; (3) Enterprises implementing projects that apply high technology; (4) Enterprises with investment projects for R&D centers.
Investment Support Fund
| High-tech enterprises | Enterprises with investment in production of high tech products | Enterprises with projects applying high technology | Enterprises with investment for (R&D) centers | |
| Investment Support Fund conditions | · Minimum capital of 472 million USD or annual revenue of 787 million USD
· For projects in chip industries, semiconductor integrated circuits, or artificial intelligence data centers, a minimum capital of 236 million USD or annual revenue of 394 million USD · The products belong to the category issued and directed by the Prime Minister · The microchip design project employs at least 300 Vietnamese engineers, staff, and managers after five years of operation in Vietnam, while supporting the annual training of at least 30 high-quality engineers in this field in Vietnam |
· The products belong to the category issued and directed by the Prime Minister
· Minimum capital of 118 million USD and must disburse 39 million USD within 3 years from the date of the investment approval |
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| Support for training and human resource[2] | Up to 50% | Up to 50% | Up to 50% | Up to 50% |
| Support for R&D | 20 – 30% | 1-10% | 20-30% | 10-20% |
| Support for investment in fixed-asset | 8-10% | 1-3% | 8-10% | – |
| Support for high-tech product manufacturing | 1-3% | 0.5-1% | 1-3% | – |
| Support for social infrastructure investment[3] | Up to 25% | Up to 25% | Up to 25% | Up to 25% |
Source: Decree No. 182/2024/NĐ-CP
Moreover, the level of support funding will vary depending on each company’s expenditure, with stricter conditions required to qualify for higher levels of funding. These initiatives are also tied to requirements for reporting, financial management, accounting, auditing, and compliance with applicable regulations. By supporting enterprises in these sectors, the government aims to strengthen domestic production of high-tech products, attract foreign investment in advanced technologies, and create high-skilled jobs, ultimately enhancing economic resilience.
Conclusion
Decree No. 182/2024/NĐ-CP marks a significant step in Vietnam’s journey toward technological self-reliance and global competitiveness. With its clear focus on semiconductors and AI, this decree solidifies Vietnam’s commitment to innovation and economic growth. Enterprises and investors alike are poised to benefit from the country’s visionary policies, ensuring a bright future for Vietnam’s high-tech ecosystem.
[1] Thu Vien Phap Luat (2024). Decree No. 182/2024/NĐ-CP: Vietnam Investment Support Fund <Access>
[2] Supported costs: Long-term, short-term training domestically or abroad; other training and workforce development expenses, salaries for Vietnamese engineers and managers; Costs for implementing training, research, and business incubation programs for Vietnam at universities, innovation centers, and enterprises
[3] Social Infrastructure include: Social housing for workers to rent, schools, daycare centers, medical facilities, cultural establishments, and sports facilities
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