On December 31, 2024, the Vietnamese government issued Decree No. 182/2024/ND-CP, providing groundbreaking support measures for semiconductor and artificial intelligence (AI) research and development (R&D) businesses. This decree, effective immediately, underscores Vietnam’s commitment to fostering innovation and technological advancement in high-tech sectors.
Key Provisions of Decree 182
Support for Initial Investment Costs
Businesses investing in semiconductor and AI R&D projects can receive up to 50% of their initial investment costs if they meet specific requirements outlined in the decree. These projects must demonstrate their potential to enhance Vietnam’s innovation ecosystem and contribute to the development of groundbreaking technologies and products.
Eligibility Criteria
To qualify for support, businesses must:
- Have no outstanding tax or budget-related debts.
- Align their R&D projects with Vietnam’s prioritized high-tech industries.
- Commit to a minimum investment capital of VND 3 trillion (approximately USD 117.78 million), with at least VND 1 trillion disbursed within three years of receiving the investment decision.
These stringent criteria ensure that the support is directed toward impactful and viable projects, maximizing their contribution to Vietnam’s technological landscape.
Support for High-Tech Enterprises
Decree 182 also extends benefits to a broader range of tech enterprises, including those engaged in high-tech product manufacturing, R&D center investments, and the application of advanced technologies. General support measures include:
- Funding for training and workforce development.
- Financial aid for R&D activities.
- Assistance with fixed asset investments and infrastructure development.
- Support for high-tech product manufacturing.
Investment Support Fund
The Investment Support Fund, managed by the Ministry of Planning and Investment, plays a central role in implementing Decree 182. This national fund is tasked with:
- Receiving and managing State budget allocations and other legal resources.
- Providing financial aid to eligible businesses in accordance with the decree’s provisions.
The fund’s oversight ensures that financial resources are efficiently allocated to projects with the highest potential for success and innovation.
Implications for Vietnam’s High-Tech Industry
Decree 182 is a significant step forward in positioning Vietnam as a hub for semiconductor and AI innovation. By offering substantial financial support and fostering an ecosystem conducive to technological advancement, the decree aims to:
- Attract domestic and international investment in high-tech industries.
- Accelerate the development of cutting-edge technologies and products.
- Strengthen Vietnam’s competitive edge in the global technology landscape.
With its focus on semiconductors and AI—sectors critical to the future of technology—Decree 182 lays the foundation for sustainable growth and innovation in Vietnam’s high-tech industry.
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