The government asked the MPI to prepare the draft policy and submit it to the government in the first quarter of 2023.

The government’s assignment was issued after the publication of an article in The Youth newspaper on December 28 which mentioned the shifting of high-tech, foreign-invested enterprises to Vietnam. In the article, experts suggested that the government should continue to offer more incentives relating to tax and land rental.

In addition, it is necessary to prepare the technical infrastructure of industrial parks, factories, and modern logistics systems, as well as social infrastructure, to create a favourable living and working environment for investors.

In 2019, the Politburo enacted Resolution No.50-NQ/TW which provides the nation’s general orientation for completing institutions and policies and improving the quality and efficiency of foreign investment cooperation for this decade.

This is the first thematic resolution issued by the Politburo on foreign direct investment. It clearly states that foreign-invested enterprises are an important component of the Vietnamese economy that should be facilitated for long-term development and healthy cooperation and competition with other economic stakeholders.

At present, the construction of semiconductor component manufacturing sites is being accelerated with hopes to offset the shortages around the world. The projects have been invested in by a series of foreign companies, such as Samsung, Hana Micron Vina, and Amkor Technology, among others.

Responding to the opportunity to attract global semiconductor manufacturers, Do Nhat Hoang, director general of the Foreign Investment Agency under the MPI said, “During meetings with foreign investors, we see that many semiconductor manufacturers have plans to invest billions of dollars in Vietnam. Offering tariff incentives is one of the largest competitive advantages we have. The MPI is studying the policy to harmonise global regulations with the particular situation in Vietnam.”