Ho Chi Minh City proposes a series of special mechanisms for a breakthrough in the semiconductor industry.
Ho Chi Minh City proposes a 10-year personal income tax exemption for experts and the application of "green-lane" procedures for chip manufacturing plants and large-scale data centers to foster the semiconductor industry.
On August 4, Prime Minister Pham Minh Chinh presided over the second meeting of the National Steering Committee for Semiconductor Industry Development. The meeting was held in person at the Government Headquarters and connected online with various provinces, cities, universities, academies, and high-tech parks.
Reporting to the Prime Minister from the Ho Chi Minh City venue, Ms. Tran Thi Dieu Thuy, Vice Chairwoman of the City People's Committee, stated that the city had early on identified the semiconductor industry as a strategic sector.
To date, the city has attracted investment from major technology corporations such as Intel, Samsung, Marvell, Renesas, Siemens EDA, and Ampere Computing.
Specifically, the Ho Chi Minh City High-Tech Park (SHTP) is home to 37 operational projects in the electronics and microchip sectors, with a total investment capital exceeding US$7.7 billion.
.jpg)
Intel Vietnam's factory at the Ho Chi Minh City Hi-Tech Park. Photo: Le Toan
Despite attracting investment from several major corporations, the Vice Chairwoman of the Ho Chi Minh City People's Committee highlighted limitations hindering the city's breakthrough in semiconductor industry development. These include policies for attracting experts that lack sufficient appeal, a lack of specific mechanisms for large-scale projects, and slow licensing processes for chip manufacturing projects relative to investor needs.
To address these practical obstacles, Ms. Thuy proposed that the Government submit a request to the National Assembly to amend and supplement Resolution 98/2023/QH15. The proposal includes a 10-year personal income tax exemption for domestic and foreign experts working in the city's semiconductor sector.
Regarding chip manufacturing and large-scale data center projects, the city proposed including them in the list of strategic investment priorities. This would be accompanied by a "green channel" mechanism to minimize administrative procedures, thereby creating a competitive advantage to attract leading global technology "eagles."
Regarding infrastructure, the city proposed that the Government prioritize accelerating the approval of plans to expand the Hi-Tech Park and develop a digital technology industrial park, aiming to create a supply of "clean" land ready for major investment projects.
Regarding credit, the city recommended that the Government establish specific preferential mechanisms for domestic enterprises investing in chip design, semiconductor material production, and supporting industries.
Speaking at the meeting, Prime Minister Pham Minh Chinh commended Ho Chi Minh City for expanding its high-tech and digital technology industrial parks and for implementing projects within the semiconductor sector. Regarding the proposals put forward by Ho Chi Minh City, the Prime Minister directed that the City must proactively implement—without delay—any measures falling within its jurisdiction, particularly those stipulated in the National Assembly's Resolution 98, to prevent issues from dragging on.
The Prime Minister instructed Ho Chi Minh City to leverage its role as a leading economic engine, act more proactively, and accelerate the implementation of set tasks, adopting a "resolve obstacles as they arise" approach.
He also required ministries and agencies to proactively assess situations, clearly identify the nature of obstacles and where responsibility lies, and propose specific solutions to promptly address bottlenecks.