Vietnam has been proactive and successful at attracting both domestic and foreign technology investors through enhanced investment incentives and regulatory reforms. We look at the key attractions.
A New Mandate
The Law on the Digital Technology Industry became effective in January 2026 and marked a significant milestone. The law establishes a unified legal framework that governs semiconductors, AI, digital infrastructure, data centres, and digital assets.
The change provides greater regulatory certainty for investors. Previously, technology projects were often subject to fragmented regulations administered by multiple ministries and authorities. The new law consolidates regulatory oversight, streamlines the compliance process, and introduces a clearer and more predictable system of investment incentives and support mechanisms.
In addition, the government has created a list of key digital technology products and services eligible for incentives. Investors engaged in research, development, production, or that provide prioritized products and services that can qualify for incentives.
The Law on Artificial Intelligence, which came into effect in March, complements these developments by introducing a risk-based governance framework for AI systems. The law establishes a structured regulatory sandbox that allows technology companies to test and deploy AI products. This is a positive signal for serious institutional investors. It signals Vietnam’s intent to build a transparent, rules-based ecosystem to attract and retain high-quality, long-term technology investment.
The latest Law on Investment, also introduced in March, creates a dedicated framework for special investment incentives, support measures, and preferential tax treatment.
In parallel, the government has established an investment support fund aimed to attract strategic investors and multinational corporations operating in priority sectors.
New Incentives
The financial incentives embedded in Vietnam’s new technology laws are significant.
Investment incentives in science and technology have been prioritized. In a unique move, the government can determine and adjust the list of sectors by simple decision. This approach permits the regulatory framework to adapt swiftly to developments. This flexibility is particularly important in the technology sector, where innovation and development evolve rapidly.
The investment law provides new forms of investment incentives, including: corporate income tax, preferential tax rates or tax exemptions and reductions; import duty exemptions for goods used to create fixed assets, as well as for raw materials, supplies, and components used in production; exemptions or reductions of land use fees, land rentals, and land use taxes; and accelerated depreciation and enhanced deductible expenses.
Projects located in high-tech parks and digital technology zones can apply a special investment process. This will significantly shorten timelines and will be particularly attractive for digital technology projects, semiconductor projects, AI data centres, and innovation centres.
Under these new rules, investors are only required to comply with standards and to submit an economic-technical report together with environmental impact mitigation measures. They will not be required to obtain construction permits, zoning approvals, or other pre-implementation licences normally mandated.
This mechanism is available without restriction, except for investment projects specifically subject to approval.
Meanwhile, the Investment Support Fund, established at the end of 2024, provides government funding up to 50 per cent of initial investment costs in semiconductor and AI research and development (R&D) projects. This includes infrastructure and factory construction, equipment and machinery procurement, workforce training and talent development, and pilot production and R&D activities.
By comparison with other regional destinations, this level of direct government financial participation is a meaningful differentiator. It reduces the capital required to enter the market and the execution risk associated with building new facilities.
Workforce Development
Elsewhere, in 2024 Vietnam began to target the training of 50,000 degree-qualified semiconductor professionals by 2030, in a cornerstone initiative designed to ensure that the human capital required for advanced technology manufacturing keeps pace with investment inflows.
More broadly, Vietnam’s young, digitally native workforce, combined with a strong culture of STEM education, will provide a competitive foundation. Universities are actively expanding engineering programmes, and qualified foreign technology professionals benefit from personal income tax incentives under the new laws.
For investors planning long-term operations, this focus on workforce development reduces the risk of talent bottlenecks that have constrained technology scaling in other regional markets.
In addition, a digital technology park framework was introduced, allowing investors to establish and operate concentrated technology zones with streamlined licensing, land access, and customs processing.
The Benefit of Designated Parks
Projects operating within designated parks will benefit from priority customs processing, including faster processing and simplified documentation for technology imports. For companies managing complex global supply chains, this operational efficiency is expected to translate into cost savings and faster time-to-market.
Cities like Danang have already demonstrated the model’s potential, attracting nearly 70 companies in the semiconductor, microchip, and AI sectors including Marvell, Synopsys, Renesas, and FPT Semiconductor. To celebrate this momentum, the city has established the Danang Semiconductor and AI Centre to promote the development of both industries–and positioning itself as Vietnam’s and Southeast Asia’s AI hub.
Investment incentives are only credible when backed by consistent political will. Vietnam intends to anchor its technology strategy by making it a high-level national policy.
Vietnam has set explicit targets for 2030: ranking among the top three in Southeast Asia for digital competitiveness and AI R&D, achieving nationwide 5G coverage, and ensuring the digital economy accounts for at least 30 per cent of national GDP.
The Long Term
These are not just aspirational; they are policy mandates that are driving budget allocation, regulatory prioritization, and institutional coordination across government. For investors, political commitment at this level is a strong indicator of a stable, long-term investment plan.
For technology companies and institutional investors evaluating Southeast Asia, Vietnam’s incentive window is open, clearly defined, and actively supported by a growth-oriented government.
