Speaking at the Semiconductor Investment Promotion Conference in Da Nang 2024 held on the morning of August 30, Mr. Ho Ky Minh, Vice Chairman of the Da Nang People's Committee, shared that the semiconductor industry is identified as one of the new important driving forces, laying the foundation for a breakthrough in the socio-economic development of Da Nang in the coming time. Especially since Vietnam and the United States upgraded their comprehensive strategic partnership.

Many attractive policies

The Vice Chairman of the Da Nang People's Committee said that to develop the semiconductor industry, Da Nang focuses on three breakthrough directions: policy, human resources and infrastructure. On June 26, the National Assembly passed Resolution 136 on the organization of urban government and piloting specific mechanisms and policies for the development of Da Nang with specific preferential policies to attract strategic investors and strategic partners in the field of semiconductors, specifically:

Regarding investment attraction policies, for strategic investors, enterprises will be leased land by the State without auctioning land use rights or bidding to select investors; can choose the form of State land lease with one-time land rental payment for the entire lease term; can include in deductible expenses to determine taxable income for research and development (R&D) activities 150% of the actual costs of this activity when calculating corporate income tax.

Enterprises also enjoy priority in customs procedures and tax procedures according to the provisions of law and are supported with 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.

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Vice Chairman of Da Nang City People's Committee Ho Ky Minh. Photo: Ho Giap

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 long-term cooperation agreements with the city in human resource training, technology transfer and investment expansion in the city.

For investment activities in developing semiconductor chips, artificial intelligence, information and communication, science and technology management, and innovation, Da Nang exempts corporate income tax for a period of 5 years from the time the payable income tax arises.

Enterprises are also exempted 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 (not yet offering securities to the public) within a tax exemption period of 5 years from the time of capital contribution to the enterprise.

Exemption from personal income tax for 5 years for income from innovative start-up activities, activities in the fields of design, production, packaging, testing of semiconductor chips, artificial intelligence working at enterprises in the city.

Developing infrastructure to serve the semiconductor industry

Mr. Ho Ky Minh said that for students and experts in the semiconductor industry, the city supports training and development costs for students majoring in semiconductors; and enjoys preferential treatment in terms of income and accommodation costs.

Regarding the development of human resources for microchips and semiconductors, the city identifies human resources as the “core” that creates the semiconductor industry. Along with organizing new enrollment for undergraduate, master’s and doctoral training in the semiconductor industry, Da Nang focuses on retraining and transitional training for graduated engineers and lecturers specializing in microchips and semiconductors.

Regarding the development of infrastructure serving the semiconductor industry, Mr. Ho Ky Minh said that Da Nang identified this as the "skeleton" for developing the semiconductor industry.

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Software Park No. 2 project in Da Nang with a total investment of nearly 1,000 billion VND, where the semiconductor microchip sector will be developed. Photo: Ho Giap

To prepare infrastructure for semiconductor design in the short term, in addition to focusing on attracting investment in high-tech parks and 3 existing concentrated information technology parks, Da Nang strives to continue putting into operation software park No. 2 by the end of 2024, meeting the needs of more than 6,000 employees.

At the same time, research and invest in expanding phase 2 of the software park project No. 2 with an area of ​​2.5 hectares; create favorable conditions for strategic investors to invest in new software parks and concentrated information technology parks in the city with an area of ​​about 22 hectares...

In addition, the city also focuses on accelerating the implementation of procedures for selecting investors to develop infrastructure for specialized semiconductor manufacturing zones in the Free Trade Zone to attract investment projects in the fields of testing, packaging, and enterprises producing materials, components, equipment, etc. in the semiconductor supply chain.