Nghe An provincial leaders work with the US Semiconductor Industry Association

Comrade Nguyen Duc Trung - Deputy Secretary of the Provincial Party Committee, Chairman of the People's Committee of Nghe An province and Vice ChairmanThe Semiconductor Industry Association co-chaired the meeting.

Before the official working session, Mr. John Neuffer - President of the US Semiconductor Industry Association came to greet the delegation of Nghe An province. He was very grateful to receive the delegation and expressed his hope that there will be activities to promote cooperation in the field of semiconductor technology between the two sides in the near future.

At the working session, Chairman of Nghe An Provincial People's Committee Nguyen Duc Trung introduced an overview of the province's natural conditions, potentials and strengths in developing the semiconductor ecosystem and the province's support policies, and the province's needs in attracting investment.

Chairman of the Provincial People's Committee Nguyen Duc Trung emphasized that Nghe An province has prepared favorable conditions to attract investment, meeting the requirements of investors when coming to learn about and invest in Nghe An.

Nghe An province has prepared platforms and ecosystems to welcome US businesses in high-tech fields such as: Semiconductor technology, manufacturing industry, production of materials, electronic components, financial services, banking. The attractive fields aim to meet the requirements of innovation, digital economy, green economy, circular economy, knowledge economy, sharing economy, climate change response economy, new energy, renewable energy for sustainable development.

At the meeting, members of the US Semiconductor Industry Association expressed their joy that the relationship between Vietnam and the US has been upgraded to a Comprehensive Strategic Partnership; at the same time, they hope to seek opportunities for members of the Association to invest in Vietnam in general and Nghe An province in particular.

Emphasizing that Nghe An is on the right track in attracting investment with adequate infrastructure, human resources and appropriate policies, members of the US Semiconductor Industry Association said that Vietnam should join the expanded Information Technology Agreement to create favorable conditions for partners. In addition, Nghe An province needs to ensure reliable energy sources and water sources to meet investors' needs.

Discussing and answering the content that the Association members are interested in, Chairman of Nghe An Provincial People's Committee Nguyen Duc Trung emphasized that energy source is an important issue. The province will work with the Government to ensure a stable energy source to facilitate the development of industrial sectors, including the semiconductor industry when the province attracts projects. At the same time, the province will listen and study the proposal to the Vietnamese Government to join the Expanded Information Technology Agreement, bringing common benefits to Vietnam and localities, including Nghe An.

Going into specific issues, Chairman of the Provincial People's Committee Nguyen Duc Trung said that the development plan of Nghe An province has been approved by the Prime Minister of Vietnam, which integrates 49 planning contents, including 28 sectoral and field plans and 21 local plans. In particular, in the sectoral plan, the province has planned to develop semiconductor manufacturing industries.

Nghe An is a province located in the North Central region, 300km from Hanoi city, so the distance from the economic development center to Nghe An is an issue that the province must improve to attract investment. Currently, the expressway from Hanoi to Nghe An is basically completed, reducing 1.5 hours of travel time.

Nghe An province has an international airport, but its scale is still small, with a capacity of about 2.5 million passengers per year, mainly serving domestic flights. The province has plans to invest in upgrading and expanding the airport to accommodate international flights. This is a favorable condition for investors to come to Nghe An province.

Nghe An also has seaport infrastructure and is continuing to invest in upgrading it to become a deep-water port, able to receive ships from 70,000 tons - 100,000 tons and in the long term can receive ships up to 200,000 tons.

In terms of land, Nghe An province has the Southeast Economic Zone with a total area of ​​over 20,000 hectares, of which about 2,000 hectares are reserved for developing industrial parks. Of these 2,000 hectares, the province has formed 5 industrial parks, of which 3 are basically full, the remaining 2 are implementing infrastructure investment to welcome new investors. If necessary, the province can form specialized industrial parks to attract businesses to invest in the semiconductor industry.

Regarding human resources, Nghe An province has a fairly abundant human resource with more than 1.6 million people of working age, providing the market with an average of 40,000 - 45,000 new workers each year. The province has a system of training facilities to train human resources with 6 universities, 11 colleges, and 70 vocational training centers. However, the province is looking for training support in the semiconductor industry.

In particular, enterprises investing in the Southeast Economic Zone will enjoy the highest incentives on corporate income tax. For high-tech enterprises, the Vietnamese Government is currently applying a very low corporate income tax rate of 5% for 37 years, of which the first 6 years are completely tax-free and 50% reduced for the next 13 years. In addition, land and water surface rents will be tax-free for 22 years and reduced by 75% for the remaining period.

Sharing about the attitude of the government and agencies in supporting investors, Chairman of the Provincial People's Committee Nguyen Duc Trung emphasized that the viewpoint of Nghe An province is to always accompany and support investors when they come to learn, survey and implement investment projects in the province with the goal: The success of investors is the success of Nghe An province; with the spirit: Publicity, transparency, creating the most favorable conditions for investors.

Nghe An province is aware that competition in attracting investment among localities in Vietnam is currently very high, so the difference between localities is the attitude of the government towards businesses and investors.

SIA - Semiconductor Industry Association was founded in 1977 by five microelectronics pioneers. Headquartered in Washington, DC, SIA is the voice of the U.S. semiconductor industry, one of America's top export industries and a key driver of America's economic strength, national security, and global competitiveness.

In 2022, U.S. semiconductor companies generated $146 billion in revenue, and semiconductors make the trillion-dollar global electronics industry possible. U.S. semiconductor companies represent more than half of the global market. The semiconductor industry directly employs a quarter of a million people in the U.S. and supports more than 1 million additional American jobs.

The Semiconductor Industry Association currently has 29 board members, 16 international members, and 31 corporate members.