Da Nang aims to be in the Top 3 largest semiconductor centers in Vietnam
Implementing many preferential policies and attracting investment, Da Nang City aims to become one of the three largest semiconductor centers in Vietnam by 2030.
On August 30, Da Nang City organized the event "Da Nang Semiconductor Day 2024".
Speaking at the Semiconductor Investment Promotion Session, Da Nang City Chairman Le Trung Chinh affirmed that the City is looking forward to the contributions of investors and experts in planning and orienting the development of this important field.
According to Mr. Le Trung Chinh, the semiconductor industry is one of the important industries with high value; forecast to bring in revenue of 620 billion USD in 2024 and increase sharply to 1,000 billion USD in 2030.
Da Nang City has many strengths to develop the semiconductor industry with well-trained, high-quality human resources, synchronous technical infrastructure and convenient transportation.
In particular, the City has received attention from Government leaders to create a legal corridor and preferential mechanisms to support specific investments in the development of the semiconductor industry.
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| Chairman of Da Nang City, Mr. Le Trung Chinh spoke at the event "Da Nang Semiconductor Day 2024". |
These advantages have facilitated Da Nang to become the country's high-tech center with a focus on semiconductor microchips, as set out in Conclusion No. 79-KL/TW dated May 13, 2024 of the Politburo on continuing to implement Resolution No. 43-NQ/TW of the 12th Politburo on building and developing Da Nang City by 2030, with a vision to 2045.
The Chairman of Da Nang City affirmed that from the end of 2023, the City will quickly seize the opportunity to approach investors, promote the investment environment and opportunities as well as deploy human resource training in the semiconductor industry.
World leading enterprises such as Synopsys, Marvell are present in Da Nang. Nvidia, Qualcom, Intel… have come to survey investment opportunities in Da Nang and are planning to cooperate in training high-quality human resources in the city.
In addition, Foxlink Group, one of Taiwan's leading enterprises, has also invested 135 million USD in the city and is planning to expand in the near future.
“With the goal of “taking the lead and going fast” in developing human resources for the semiconductor industry in Vietnam to catch the investment wave, Da Nang is looking forward to the contributions of investors, businesses and experts in planning and orienting the development of the semiconductor industry, thereby establishing an open investment environment with appropriate support mechanisms and investment incentives, creating fast and effective investment opportunities for investors in this field,” Mr. Chinh affirmed.
Many preferential policies
Regarding the development goals of the semiconductor industry, Vice Chairman of Da Nang, Mr. Ho Ky Minh, said that the city aims to become one of the three largest semiconductor centers in Vietnam by 2030; forming a network to train high-quality human resources in semiconductors associated with the synchronous development of the semiconductor ecosystem.
Specifically, Da Nang City focuses all resources on training and attracting at least 5,000 high-quality human resources for the semiconductor industry.
Including at least 2,000 design staff and 3,000 testing and packaging staff; attracting investment from at least 20 semiconductor design and design service enterprises, including 1-2 packaging and testing enterprises.
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| Secretary of the Da Nang City Party Committee, Mr. Nguyen Van Quang visited intellectual products at the Da Nang Semiconductor Day event. |
Mr. Ho Ky Minh also said that the City will implement a series of policies to attract investment and build a semiconductor ecosystem.
The National Assembly passed Resolution 136/2024/QH15 on the organization of urban government and piloting specific mechanisms and policies for the development of Da Nang city with specific incentive policies to attract strategic investors and strategic partners in the field of semiconductor microchips, specifically:
Accordingly, for strategic investors, enterprises will be leased land by the State without auctioning land use rights or bidding to select investors; and can choose the form of State land lease with one-time land rental payment for the entire lease term.
At the same time, deductible expenses to determine taxable income for research and development (R&D) activities are calculated at 150% of the actual costs of this activity when calculating corporate income tax; enjoy priority in customs procedures according to the provisions of the law on customs and tax procedures and receive support of no more than 5% of the total cost of purchasing production support equipment, costs of moving assets, production lines, equipment, technology, and costs for new investment projects.
For strategic partners, enterprises are directly leased information infrastructure assets by the State without auction; are designated by the State to bid for the purchase of specific equipment; are supported with no more than 5% of the total cost of purchasing production support equipment, costs of moving assets, production lines, equipment, technology, costs for new investment projects; are partially supported with costs of hiring highly qualified human resources.
To enjoy incentives from strategic investors and strategic partners, businesses and investors, in addition to meeting requirements on capital, revenue, technology, etc., must sign a long-term cooperation agreement with the city.
For investment activities in developing semiconductor chips, artificial intelligence, information and communications, enterprises will be exempted from corporate income tax for a period of 5 years from the time the payable income tax arises.
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| Da Nang City offers many incentives in the field of semiconductor microchips. |
Exemption from personal income tax and corporate income tax for organizations with income from transferring shares, capital contributions, and capital contribution rights to innovative enterprises, semiconductor chip activities, and artificial intelligence for a tax exemption period of 5 years from the time of capital contribution to the enterprise.
In addition, businesses are also exempted from personal income tax for a period of 5 years for income from innovative start-up activities, activities in the fields of design, production, packaging, testing of semiconductor chips, and artificial intelligence working at businesses in the city.
For students and experts in the semiconductor industry, the city supports training and development costs for students majoring in semiconductors; enjoy preferential treatment in terms of income and accommodation costs.
Mr. Ho Ky Minh also affirmed that the City is urgently completing the draft Resolution regulating policies to support the development of semiconductor microchips and artificial intelligence to promptly issue and apply it from the beginning of 2025.
![[Photo] Prime Minister Pham Minh Chinh chairs Government Conference with localities on economic growth](https://vstatic.vietnam.vn/vietnam/resource/IMAGE/2025/2/21/f34583484f2643a2a2b72168a0d64baa)
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