HO CHI MINH CITY PLANS UP TO $600,000 SUPPORT FOR DOMESTIC SEMICONDUCTOR DESIGN PROJECTS

Ho Chi Minh City People's Committee is consulting on a draft resolution regarding policies to support businesses implementing semiconductor chip design projects in the city.

Ho Chi Minh City plans to support up to $600,000 for each domestic semiconductor chip design project. Photo: Le Toan

It marks a crucial policy boost to boost the development of this strategic industry, befitting its position as the largest technology centre in the country.

According to Ho Chi Minh City Department of Science and Technology (the drafting authority), although the city is a hub concentrating most research institutes, universities, and microchip human resources nationwide, domestic businesses are still facing enormous financial barriers. The high costs of training, R&D, and equipment investment are bottlenecks that the market cannot regulate on its own.

To address this issue, the draft proposes a support level of 30 per cent of the total project implementation cost, but not exceeding $600,000 per project. The support focuses on four core areas: human resource training and development; R&D; pilot production; and investment in technology, machinery, and equipment for chip design.

This policy gives priority to domestic businesses (established under Vietnamese laws, headquartered and paying taxes in Ho Chi Minh City) and does not apply to foreign-invested enterprises or multinational corporations.

One of the most innovative and groundbreaking aspects of this draft is intellectual property rights. Unlike typical support programmes, Ho Chi Minh City plans to grant businesses full registration and ownership rights to research results and intellectual property generated from the project. The city will not regulate profits or require a share of the commercial value generated from the exploitation of these assets.

To receive support, projects must meet stringent criteria regarding feasibility, innovation, and especially contribute to the creation of new core technologies or core designs. Businesses also need to have a plan for matching capital and prioritise research collaboration with institutes and universities or utilise the city's shared laboratory system.

Amid Vietnam's rapidly growing semiconductor industry, with revenue reaching $21 billion by 2025 and a workforce of over 7,000 engineers, Ho Chi Minh City's continued refinement of special mechanisms in 2026 is expected to create highly applicable "Made in Vietnam" chips that meet market demands.

Source: VIR

Related News

MEMBER CORNER / PROMOTIONS

AN ELECTRIFYING NIGHT WITH THE "QUEEN OF DANCE" THU MINH AT THE GRAND HO TRAM!

The stage at The Grand Ballroom is set to catch fire as Vietnam’s undisputed "Queen of Dance," Thu Minh, takes the spotlight. Renowned for her powerhouse vocals, magnetic stage presence, and sultry, high-energy performances, Thu Minh promises an evening of pure musical euphoria. The energy escalates with an exclusive appearance by special guest and The Voice champion, Vu Thao My.

Sep 17, 2026

HR / LABOUR/ EMPLOYMENT

HIGH-QUALITY HUMAN RESOURCES NEEDED TO ATTRACT NEW TECH INVESTMENT CAPITAL

Besides infrastructure, Việt Nam must also rapidly develop a highly skilled workforce to attract investment in AI, semiconductors and advanced manufacturing, experts have said. Don Lam, CEO and co-founder of investment management company VinaCapital, said that global technology investors were increasingly looking at the readiness of the entire ecosystem, with high-quality human resources a decisive factor.

Sep 16, 2026

HR / LABOUR/ EMPLOYMENT

HIRING OUTLOOK STRENGTHENS IN Q4 AS SKILLS SHORTAGES PERSIST

Hiring intentions among employers in Việt Nam strengthened in the fourth quarter, with 52 per cent of surveyed companies planning to increase headcount between October and December, according to a ManpowerGroup survey released this week. Việt Nam's hiring outlook was stronger than the Asia Pacific and Middle East (APME) regional average of 33 per cent and the global average of 29 per cent, ranking third in the region and 11th globally among 42 markets surveyed.

Sep 16, 2026

BANKING / FINANCE / INSURANCE / TAX

LARGE BANKS FORECAST TO GAIN HIGHER PROFITABILITY IN H2 2026

The return on average assets (ROAA) of the banking sector will likely remain stable at around 1.5 per cent in the second half of 2026, but profitability divergence among banks will increase, with large banks outperforming peers on stronger margins and diversified earnings, analysts forecast. In a recent report on the banking sector, analysts from the Vietnam Investors Service Rating said the sector’s ROAA rose by 10 basis points quarter-on-quarter to 1.51 per cent in the first half of this year, driven by net interest margin (NIM) improvements at some State-owned banks and large private banks.

Sep 16, 2026

GARMENT / TEXTILE

VIỆT NAM'S FOOTWEAR, BAG EXPORTS TO US TOP $8 BILLION IN EIGHT MONTHS

Việt Nam's exports of footwear and handbags to the US exceeded US$8 billion in the first eight months of 2026, as the US and EU remained the country's biggest markets despite sluggish growth in footwear shipments. Exports from Việt Nam's leather and footwear sector reached more than $2.45 billion in August, down 9 per cent from July but up 3 per cent from a year earlier, according to preliminary statistics.

Sep 16, 2026

VIETNAM ECONOMY INVESTMENT

LÂM ĐỒNG TARGETS DIGITAL ECONOMY TO ACCOUNT FOR 30 PER CENT OF GRDP BY 2030

Lâm Đồng Province aims to raise the digital economy’s contribution to around 30 per cent of its gross regional domestic product (GRDP) by 2030, as part of a five-year plan to develop digital economy and society issued recently. Under Plan No. 15358/KH-UBND, the province targets more than 60 per cent of small- and medium-sized enterprises (SMEs) to adopt digital technologies by 2030 while increasing the value of cashless payments to 30 times its GRDP.

Sep 16, 2026