Hanoi lures semiconductor giants with strategic advantages

With its strategic location and many unique advantages, Hanoi has great potential and opportunities to develop the semiconductor industry and attract investment in the sector, said Nguyen Tran Quang, Deputy Director of Hanoi Promotion Center (HPA), at the Hanoi Conference on Connecting Investment and Semiconductor Industry Development 2024 held in Hanoi on July 29. 

Nguyen Tran Quang, Deputy Director of the Hanoi Promotion Center speaks at the conference. Photos: VNA

Golden opportunity 

At the conference, Nguyen Tran Quang described semiconductors as the "lifeblood" of the digital economy and the cornerstone of many cutting-edge technologies. He highlighted that Vietnam has successfully drawn major corporations from the US, South Korea, Japan, and Europe to explore semiconductor investments.

Quang further emphasized that Hanoi is now a key player in the global semiconductor race. He noted that the city has made remarkable strides in attracting investment, enhancing infrastructure, and cultivating a skilled workforce, positioning itself as a rising star in the global semiconductor industry.

He added that despite facing many difficulties and challenges, Hanoi's socio-economic development has achieved remarkable results in the first half of 2024. Exports have regained momentum, with export value reaching US$8.9 billion, up 11% year-on-year. The city has also attracted $1.1 billion in foreign direct investment (FDI).

"With these positive results, Hanoi remains an attractive destination for domestic and international investors," he stressed. "Based on these concrete and practical goals, the city has consistently confirmed its leading position in attracting foreign investment."

The amended Capital Law, approved on June 28, 2024, lists semiconductors as a priority sector for strategic investors in the city. According to the official, Hanoi would offer a series of investment incentives to strategic investors in the semiconductor sector.

He added that a number of major IT companies have expressed interest in investing in Hanoi. Leading multinational technology company Samsung has expanded its operations in Vietnam by building a manufacturing plant and R&D center in Hanoi, investing billions of dollars and creating thousands of jobs for the local community.

Intel is also considering expanding production in Hanoi. The presence of these big names not only attracts foreign direct investment (FDI), but also stimulates ancillary industries, from component manufacturing to technical services.

The deputy director of the HPA said the city expects continued support and cooperation from provinces, cities, and domestic and foreign investors who have invested and will continue to pour capital into Hanoi, especially in the semiconductor industry.

"The city will continue to improve its investment and business environment and always stand by the business community so that investors can succeed and develop sustainably, contributing to the development of the capital and the country as a whole," Quang said.

A key factor: favorable government policies

The deputy director of the HPA said a key factor helping Hanoi attract semiconductor investment is the government's incentive policies. Vietnam has implemented strong support policies for technology companies, including tax, land, and administrative incentives. Industrial parks and high-tech zones in Hanoi, such as the Hoa Lac Hi-Tech Park, are fitted with modern infrastructure and are ready to welcome large investment projects.

He added that Hanoi's strategic location in the heart of Southeast Asia provides logistical and transportation advantages for semiconductor manufacturers, with easy access to large markets such as China and ASEAN. The city is optimistic about attracting strong semiconductor investment with favorable government policies and its geographic location.

Nguyen Viet Hung, Director of the Hanoi Department of Information and Communication, delivers a speech at the event.

Speaking at the event, Nguyen Viet Hung, Director of the Hanoi Department of Information and Communication, believed that the city has great potential and advantages to develop a thriving semiconductor industry. Hanoi is positioning itself as a priority location for semiconductor and artificial intelligence (AI) technology research and development, he said.

"Hanoi's goal in the coming period is to become a leading hub for scientific research, technology development and innovation, with strong links to the innovation ecosystem of the Red River Delta region and the whole country," Hung said.

Hanoi aims to establish itself as a leading design and production center for semiconductor and AI products, on par with regional and global leaders in certain fields, with a special focus on semiconductor technology, he added.

To develop the semiconductor industry, Hung said Hanoi will focus on implementing a series of tasks and solutions to promote the growth of digital enterprises under the principle of "government partnership, business insight and economic development".

Hanoi will also promote the development of concentrated information technology zones, support businesses with leading industrial products, and prioritize the selection, testing, investment, leasing, and procurement of digital technology products and services from enterprises.

The city has organized networking activities and events, collaborated with universities, colleges, and primary and secondary schools in the city on digital technology research and education, and accelerated business operations on digital platforms. It will continue to research, innovate and develop the Hanoi Information Technology Business Incubator model.

Hung said Hanoi will offer investment incentives for semiconductor companies, including land rental waivers, preferential tax rates, and exemptions from certain bidding requirements.

Chairman of the Vietnam Association of Software and IT Services (VINASA) Nguyen Van Khoa has urged Hanoi to move quickly to attract both domestic and foreign investment in the semiconductor industry.

He stressed that the most important step for Hanoi is to establish mechanisms to draw investment resources for R&D and production of semiconductor chips, as well as talent in the semiconductor field.

He said that the city needs to allocate appropriate resources to provide a launch pad for the semiconductor industry.

"Hanoi should work closely with enterprises to develop a robust market for semiconductor chips," Khoa underlined.

The event is part of a series of activities under the Hanoi 2024 Semiconductor Investment Festival, which is running from July 29-31 in Hanoi.