Ho Chi Minh City plans to support up to 7 billion VND for semiconductor support projects
This is part of the draft resolution being developed by the Department of Science and Technology of Ho Chi Minh City. Accordingly, the city will use science and technology funding to support two groups of activities including sample production; buy technology and innovate technology. The goal is to help Vietnamese businesses reduce R&D costs and have the opportunity to participate in the supply chain.
Specifically, sample production projects are supported with a maximum of 50% of the cost, but not more than 2 billion VND. Technology purchase and technology innovation projects are supported with a maximum of 50% of the cost, not exceeding 5 billion VND. If a project simultaneously produces prototypes and purchases and innovates technology, the maximum total cost is 50% of the cost, no more than 7 billion VND.
According to the draft, to receive support, the project must produce products in the list of raw materials, supplies, and components directly supplied to the production, packaging, and testing lines of semiconductor chips issued by the Ministry of Science and Technology in Circular 32/2025.
This category includes many links from input to chip packaging such as high purity silicon, wafer, SiC, GaAs, GaN, InP semiconductor compounds; photomask, contrast agent; specialized chemicals and gases; sputtering target; guide frame; packaged circuit base; packaging materials; connecting wires and wafer, die, chip mounting materials.
These are materials, supplies and components directly involved in the stages of chip production, packaging and testing, instead of products that only serve the industry indirectly.
In addition to product requirements, businesses must also have a dedicated R&D department and the total cost for this activity must be at least 2% of average net revenue in the three consecutive financial years.
For the electronic equipment manufacturing group, the draft defines a broader scope, including electronic products, computers, optical products and communication equipment in group C.26 of the Vietnam Economic Sector System.
Enterprises eligible for the policy must be Vietnamese enterprises, implementing projects within the scope of the resolution and declaring and paying actual taxes in Ho Chi Minh City.
According to the Department of Science and Technology of Ho Chi Minh City, current support policies mainly focus on credit, taxes and markets, while direct support for science and technology, innovation and digital transformation is still limited. This makes initial R&D investment costs become one of the barriers for businesses.
Therefore, the new policy aims to share part of research and development risks with businesses, reduce initial investment costs and create conditions for the formation of Vietnamese-branded semiconductor and electronic equipment auxiliary products.
In the long term, Ho Chi Minh City expects the policy to help improve technological autonomy and promote localization of high-tech supply chains, thereby increasing the participation of domestic enterprises in the semiconductor industry.
The mechanism is built on the basis of the authority of the Provincial People's Council assigned by the National Assembly in the Law on Digital Technology Industry 2025, allowing localities to stipulate criteria, conditions, sequences and levels of budget support appropriate to reality. According to the process, the draft will be reviewed by the Ho Chi Minh City People's Committee and submitted to the City People's Council for decision.
Le Tuyet