The investment support fund will operate on a non-profit basis under the management of the Ministry of Planning and Investment.

The fund is responsible for receiving, managing, and utilising state budgets and other legal resources in compliance with the decree and relevant regulations.

The fund will provide assistance to companies operating in specific industries, as outlined in the decree. This is coupled with reporting, financial management, accounting, auditing, and compliance with applicable regulations.

Notably, the fund will grant up to 50 per cent of initial investment costs for semiconductor and AI research and development (R&D) projects.

To be eligible for this incentive, businesses must have no tax arrears or budget debt. The R&D investments must have a positive impact on Vietnam's innovation and technology ecosystem with the development of new technologies and breakthrough products.

The R&D projects must be on the list of priority high technologies. Such projects must have a minimum investment capital of VND3 trillion ($117.8 million) and must disburse at least VND1 trillion ($39.3 million) within three years from the licensing date.

In addition, the fund will support high-tech companies, firms with high-tech products, businesses with high-tech applications, and those with R&D centre investments.