On July 29, Hanoi hosted a conference focused on connecting investment for the semiconductor industry, with the aim of attracting more resources and investment for its future growth. The event, titled "Semiconductor industry development in Hanoi 2024," gathered key stakeholders from various sectors.

Policymakers, businesses and experts gathered at the event to discuss about the development of the city’s semiconductor industry

Nguyen Tran Quang, deputy head of Hanoi Centre for Investment, Trade, and Tourism Promotion (HPA), said that as the "lifeblood" of the digital economy, semiconductor technology forms the foundation for many modern solutions.

"Vietnam has been attracting many large corporations in the semiconductor industry, including those from the United States, South Korea, Japan, and European countries," Quang said. “Hanoi is not outside the global race for semiconductor technology development. With significant progress in attracting investment, developing infrastructure, and building human resources, Hanoi is quickly becoming a hot spot on the world’s semiconductor industry map.”

Nguyen Tran Quang, deputy head of Hanoi Centre for Investment, Trade, and Tourism Promotion (HPA)

In the first six months of 2024, despite various challenges, Hanoi achieved notable socioeconomic progress. The city’s regional GDP increased by 6 per cent on-year. The industrial production index rose by 5 per cent, with the processing and manufacturing sectors up by 4.1 per cent. The product consumption index climbed by 13.1 per cent. Exports also showed impressive growth, with a turnover of $8.9 billion, an 11 per cent increase over the same period in 2023.

“Based on specific and practical goals, Hanoi has always stated its leading position in attracting foreign investment. The city has been constantly improving the investment and business environment, actively reviewing and simplifying administrative procedures, creating convenience and reducing costs for people, organisations, and businesses,” Quang said.

During this period, Hanoi attracted $1.16 billion in foreign investment, making it an attractive destination for international capital flows.

In recent times, several large technology companies have announced plans to invest in Hanoi. Notably, Samsung, one of the world's leading technology corporations, has expanded its operations in Vietnam with the construction of a research and development (R&D) centre in Hanoi.

This group is expected to invest billions of dollars in the country, creating thousands of jobs for local workers. Intel has also considered expanding its production operations in Hanoi. The presence of these major players is not only drawing foreign investment but also providing a strong impetus for the development of supporting industries, from component production to technical services.

The HPA leader expressed hope for continued support and cooperation from domestic and international investors, especially those in the semiconductor industry. He highlighted the government's preferential policies as a key factor in attracting investment, including tax incentives, favourable land, and streamlined administrative procedures. Industrial parks and high-tech zones in Hanoi, such as Hoa Lac High-Tech Park, are equipped with modern infrastructure and ready to welcome significant investment projects.

Hanoi's strategic location in the centre of Southeast Asia, with easy access to major markets like China and ASEAN countries, offers logistical and cost advantages for semiconductor manufacturing businesses.

Nguyen Viet Hung, director of Hanoi Department of Information and Communications, emphasised the growth potential of the local semiconductor industry. He outlined plans to develop digital businesses, implement appropriate policies, enhance digital infrastructure, promote scientific and technological research, and create markets.

The city is also working to promptly address challenges and create better conditions for businesses to accelerate digital transformation and invest in core technology research. This includes efforts to develop and provide Made-in-Vietnam digital technology products and services, such as AI, big data, blockchain, cloud computing, and semiconductor chips. Furthermore, Hanoi is fostering collaboration with universities and research institutions to promote training and innovation in digital technologies.

To support the semiconductor industry, the city offers numerous preferential policies, such as exemptions from land and water surface rent for ten years, a half reduction in rent for the remaining time, and a corporate income tax (CIT) rate of 5 per cent, with a four-year CIT exemption and a half reduction for the next nine years.

Regarding human resources, leading universities in Hanoi, such as Hanoi University of Science and Technology and the University of Technology - Hanoi National University, have launched specialised training programmes in semiconductor engineering and technology. These institutions are working with technology companies to provide internships, training, and research opportunities, enabling students to gain practical experience with advanced technology.

The opening ceremony of the exhibition

At the conference, delegates discussed the potential opportunities for Vietnam and Hanoi in the semiconductor industry. They also analysed the role of the Internet of Things and AI technology in the semiconductor production and supply chain, as well as strategies for developing human resources in the semiconductor chip industry.

The conference is part of the Hanoi Semiconductor Investment Festival 2024, which will run until July 31. On July 29, HPA, Hanoi Department of Information and Communications, the Vietnam Software and IT Services Association, and Hanoi University of Science and Technology jointly opened an exhibition featuring 60 booths on 2,000-2,500 square metres, showcasing the local semiconductor industry.