Viet Nam Dangles Chip Incentives to Draw Foreign Companies: Nikkei Asia

10:39:45 AM | 2/19/2024

Viet Nam has pledged tax breaks and other perks to semiconductor companies that help to develop the sector in a Southeast Asian country, according to Japan's Nikkei Asia.

The newswire's article quoted Vietnamese Minister of Science and Technology Huynh Thanh Dat as saying in an interview that the national plan for chips will include industry grants through a science fund and joint state research with private companies like FPT.

Companies from Nvidia to Samsung are looking to expand their chip business in Viet Nam, which is slated to receive millions from the U.S. CHIPS and Science Act and already hosts Intel's biggest global test and assembly factory.

Meanwhile, Jose Fernandez, U.S. undersecretary of state for economic growth, energy and the environment, told Nikkei Asia that Viet Nam has attracted dozens of companies in the semiconductor field, and several more U.S. players would jump in if the country had enough renewable energy to meet their green goals.

Viet Nam aims to train 50,000 engineers for the industry by 2030. The country has a strong foundation for science and tech education, but a dearth of advanced skills has limited a broader march up the electronics supply chain.

Fernandez said in an interview while visiting Viet Nam that the country is a top target for U.S. CHIPS Act subsidies, which will be a "badge" of confidence. The dollar amount will be based on an assessment expected sometime this month.

Viet Nam has emerged as one of four winners as the U.S. has significantly increased its import of chip products since the beginning of the year, according to data released by the U.S. Census Bureau.

Source: VGP