According to the current plans and trends, countries are focusing on attracting investment in high technology sectors in general, including areas that are global trends such as semiconductor chips, artificial intelligence AI. This is a common trend in the world and countries are actively competing to attract investors. Many countries such as the United States, South Korea, India, China, European countries, or even neighboring countries like Singapore, Malaysia, Indonesia, Thailand all have diverse and attractive support policies.

By simultaneously applying favorable income tax policies, tax exemptions, and cost-based incentives with support packages that can amount to billions of USD. Thanks to the quick response in the policy transformation process, these countries, especially neighboring countries in Southeast Asia, have attracted many large projects in the high-tech sector. Meanwhile, the Ministry of Planning and Investment notes that in Vietnam, although foreign investment has been increasing in recent years, the number of large-scale projects with high technology content is still modest.

The expansion of some high-tech projects also shows signs of temporary suspension, with some companies officially announcing the suspension of new investment expansion plans in Vietnam, such as LG, Samsung, or Intel. In addition, some large corporations have come to conduct investment research but did not choose Vietnam or chose to wait to monitor Vietnam's policy reactions, notably LG Chemical proposed a battery production project with a request for Vietnam to support 30% of production costs in cash, then shifted to Indonesia.

Intel proposed a $3.3 billion chip manufacturing project, requesting Vietnam to support 15% in cash, then shifted to Poland. The Austrian semiconductor company ATS surveyed investment plans but Vietnam could not meet the cost and available high-tech labor, so it shifted to Malaysia. In addition, some large-scale high-tech projects are also on hold waiting for Vietnam's new policies, such as Samsung announcing plans to shift its production line to India, LG temporarily suspending plans for a new $5 billion electronic device manufacturing project, and Japanese SMC considering investing $500 million to $1 billion in Dong Nai.

In this context, the Ministry of Planning and Investment believes that Vietnam needs to introduce breakthrough selective investment support policies to ensure competitiveness, especially retaining and attracting large enterprises with extensive supply chains and large satellite business networks that have a significant impact on the socio-economic development. This policy is not intended to compensate for investors subject to global minimum tax but to encourage all businesses that meet the priority investment criteria while demonstrating the goodwill and support of the Vietnamese government for investors in the context of changing international situations.

"With the ambitious goal of attracting foreign investment (From 2021 to 2025 about $150 to $200 billion; $30 to $40 billion per year; from 2026 to 2030 about $200 to $300 billion, $40 to $50 billion per year) and in the current fiercely competitive international environment, introducing new investment support policies at this time is extremely urgent."

Mr. Do Thanh Trung, Deputy Minister of Planning and Investment, said that companies worldwide have many choices, not only in Vietnam, as other countries also have many strengths. Therefore, their investment in Vietnam but investing in other countries is normal. According to Mr. Chung, their investment depends on many factors, including three main factors: first, objective factors related to political, economic, global, regional factors, the shifting of supply chains between countries and globally.

Second, the subjective factor depends on the investment strategy, the target investment development evaluation of each region, the resources and implementation capacity of the investor. The third is Vietnam's readiness to attract these conglomerates, focusing on three issues, institutional infrastructure, and human resources. Regarding institutions, we are increasingly improving policy mechanisms, improving the investment business environment, currently researching special incentive mechanisms for semiconductor electronics manufacturing companies.

Regarding infrastructure, including road, waterway, air transport, and infrastructure related to production services such as electricity, recently approved plans to build high-tech zones to create a superior institutional environment for corporations, manufacturing conglomerates in Vietnam.

Regarding human resources, specific programs are being developed, in addition to capable agencies and units, large corporations such as VNPT, CMC, Viettel have proposed training 50,000 engineers to serve semiconductor chip production from now until 2030. We have set a goal that large corporations appreciate the determination of the Government in pursuing the development of the semiconductor electronics industry.

To truly build and develop the industry focusing on potential partners with strong commitments, especially the United States, South Korea, Japan, and Taiwan. Recently, we have achieved good results, Samsung and the national innovation center organized a training course in electronic design for more than 250 engineers, with the efforts of the Government and agencies, the results will be clearer in the future. We should not be overly concerned or criticize when many large technology companies come to Vietnam to explore investment opportunities but announce investment projects in other countries in the region. As our country develops, so do other countries, especially those in Southeast Asia are also rising strongly.

Having many large technology companies come to Vietnam to survey but not invest is normal, if 10 large technology companies come and 5 decide to invest in Vietnam, it is very successful. The worst is when 10 investors come but only 2 investors. The Ministry of Planning and Investment has just announced that there are 13 to 14 FDI projects investing in sectors such as semiconductor industry, future technology supporting high-quality workforce training. The US, South Korea, Vietnam cooperation project on rare earth exploitation and processing is being discussed, with some projects to be implemented in 2024.

In fact, Vietnam has been attracting more and more large technology conglomerates. In the semiconductor industry, more and more large corporations from Japan, South Korea, Taiwan, and the United States are investing, such as Intel, Amcore in packaging, testing, Marvel Cobo Qualcom in design, sosis, carden in chip design supply. Recently, Nvidia's leadership continued to visit Vietnam and committed to cooperation in AI, semiconductors, thereby enhancing cooperation including building supercomputing centers in Vietnam, training AI and semiconductor workforce, developing an ecosystem for AI research and development and startups.

The global investment environment is changing rapidly, countries are facing political and economic difficulties, so they tend to protect domestic production, shift investment from abroad to domestic. All these changes make the foreign investment pie shrink, so the competition of countries with the same need to attract investment like Vietnam is increasing, so we need to change our approach to the world to improve the investment environment to adapt to the competitive attraction of foreign investment. Vietnam needs to quickly reform the national administrative system, build a government that creates conditions for investors, businesses, and people to enjoy administrative procedures without inconvenience.

Large corporations need very fast development time for projects. If they cannot do it, the opportunity will be minimized or even lost, many foreign investors are still showing interest in the Vietnamese market, but the important thing is how Vietnam truly becomes the destination. Vietnam is becoming the focus of foreign investors, even when announcing an update on the East Asia economy recently, Mr. Adiya Matu, a World Bank economic expert in the Asia-Pacific region, said, "The destination for choosing China +1 is Vietnam, so Vietnam has many opportunities to attract very large investments."

Mr. Adya Matu's comments on the Vietnamese economy with a forecast that GDP growth will reach about 5.5% this year, a growth rate that may be modest. Therefore, Mr. Adya Matu believes that Vietnam should not be satisfied with the 5.5% growth figure when it is the chosen destination for foreign investors and has the potential for significant growth to promote growth, which is an important solution to attract more foreign investors' attention. Giant neighbor China is also making efforts to attract investment, Chinese leader Xi Jinping recently met with American companies to restore investor confidence, China's efforts are noteworthy in addition to information that even developed economies like Japan, Europe, and the United States are willing to allocate billions of USD in support to attract foreign investors.

It can be seen that the competition to attract foreign investment is extremely fierce, for Vietnam to be the destination, it may need more preparedness and faster action in issuing investment support policies.

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