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

VIETNAM ECONOMY INVESTMENT

GIA LAI ATTRACTS NEARLY $6.3 BILLION IN INVESTMENT, CLOSE TO MEETING ANNUAL TARGET

Central Highlands province Gia Lai attracted 168 new investment projects with total registered capital of nearly VNĐ165 trillion (US$6.3 billion) in the first half of 2026, putting it within reach of its annual investment target. According to the provincial Department of Finance, as of the end of June, the province had licensed 168 new projects with total registered capital of VNĐ164.9 trillion, achieving 98.8 per cent of the provincial People's Committee's target of 170 projects for the year.

Jul 09, 2026

INFRASTRUCTURE / CONSTRUCTION / LOGISTIC / PORT

TRANSPORT INFRASTRUCTURE SPENDING HITS $2.3 BILLION IN FIRST HALF OF 2026

Vietnam disbursed $2.3 billion for key transport infrastructure projects in the first half of 2026, but sluggish spending on two flagship railway projects continued to weigh on overall public investment progress. According to the Ministry of Finance (MoF), the Ministry of Construction (MoC) and local authorities allocated approximately $9.8 billion in state budget investment for major transport infrastructure projects in 2026, accounting for around 22 per cent of the country's total public investment plan.

Jul 09, 2026

VIETNAM ECONOMY INVESTMENT

VIETNAM'S REALISED FDI REACHES FIVE-YEAR HIGH IN FIRST HALF

According to the National Statistics Office (NSO), total registered FDI in Vietnam as of the end of June, including newly registered capital, additional capital for existing projects, and foreign investors' capital contributions and share purchases, reached $34.65 billion, an increase of 61 per cent on-year. Regarding newly registered investments, 2,013 projects were licensed with a total registered capital of $17.39 billion, up 1.3 per cent in the number of projects and 87.2 per cent in registered capital on-year.

Jul 09, 2026

GARMENT / TEXTILE

MANUFACTURING BOOSTED BY FDI, EXPORT RECOVERY AND PUBLIC INVESTMENT

Data released by the National Statistics Office (NSO) under the Ministry of Finance on July 3 showed that the industrial and construction sector maintained solid momentum during the first six months of the year, while the services sector continued to benefit from recovering domestic consumption, tourism, and trade. Industrial value-added expanded by 9.86 per cent on-year during the period, contributing 40.35 per cent to Vietnam's overall economic growth.

Jul 09, 2026

GARMENT / TEXTILE

TEXTILE AND GARMENT SECTOR POSTS NEARLY $10 BILLION TRADE SURPLUS IN H1

The textile and garment industry generated an estimated trade surplus of nearly US$10 billion in the first six months of this year, despite weak global demand, intense price competition and continued reliance on imported raw materials. The industry is aiming to achieve its full-year export target of $48 billion. According to the Vietnam Textile and Apparel Association (VITAS), exports reached an estimated $22.2 billion in the first half, up 1.7 per cent from the previous year.

Jul 09, 2026

VIETNAM ECONOMY INVESTMENT

HO CHI MINH CITY POSTS STRONG ECONOMIC GROWTH IN H1 2026

Ho Chi Minh City reported strong economic growth in the first half of 2026, with gross regional domestic product (GRDP) expanding 8.55 percent year on year, according to the city's statistics office. The service sector remained the main driver of growth in the first six months, accounting for 54 percent of GRDP and expanding 8.89 percent, while the industrial and construction sector grew 8.5 percent and contributed 32.8 percent of the city's economy.

Jul 09, 2026