Vietnam looks to attract foreign high-tech eagles

Production activities at UMC Vietnam Electronics Co., Ltd - a FDI enterprise in Tan Truong Industrial Park in Hai Duong province (Photo: sggp.org.vn)

Hanoi (VNA) – The upgrade of the Vietnam-US bilateral relations to a Comprehensive Strategic Partnership has opened up strategic opportunities for Vietnam to lure more high-quality investment inflows in terms of innovation and high technology, said Vu Quoc Huy, Director of the National Innovation Centre (NIC) under the Ministry of Planning and Investment (MoPI).

Talking to Sai Gon Giai phong newspaper, Huy provided specific details about cooperation agreements signed between Vietnamese government agencies and US corporations during Prime Minister Pham Minh Chinh's recent official visit to the US, which focus on enhancing design capabilities, product development, and training human resources serving the semiconductor industry.

NIC has signed three significant memoranda of understanding (MOUs) with US partners, Huy said.

Among them, the MoU with Synopsys aims to support the development of a chip design incubation centre.

Meanwhile, the MoU with Cadence Design Systems Inc was designed to promote the semiconductor and electronics industry in Vietnam. Through this collaboration, NIC will provide Vietnamese universities, training centres, and startups with the necessary technology and training programmes to design and develop semiconductor products.

Illustrative image (Photo: baodautu.vn)

Through the MoU with Arizona State University (ASU), NIC and the university will collaborate with Vietnamese research institutes or other educational organisations to develop training programmes and exchange research related to semiconductors and relevant fields, seek and leverage appropriate sources of funding to improve the capacity of workforce in the semiconductor industry, he said.

Huy also underlined the great potential for Vietnam to lure more investment from the world’s largest economy, saying that the presence of high-tech "eagles" will attract satellite businesses, thereby forming and expanding a technology ecosystem, creating a spillover effect.

During the last three years, the US, with a 17% market share, has become the largest foreign direct investor in the ASEAN region. A significant portion of foreign direct investment (FDI) from the US has been poured into advanced manufacturing sectors.

Established in 2019, NIC works to support and develop Vietnam's startups and innovation ecosystem, contributing to modernising the country's growth model by leveraging science and technology, Huy said.

He said in October, NIC will inaugurate its new research centre covering an area of nearly 5ha in the Hoa Lac High-Tech Park in Hanoi, which will comprise a chip design incubation centre equipped with advanced technologies from major partners of NIC.

Businesses and partners participating in NIC's innovation ecosystem will enjoy various preferential policies related to taxes, land, and visa, he noted.

Huy, however, stressed the need to take measures to address challenges related to mobilising venture investment capital, and funding from the community for innovation activities.

It is also crucial to solve bottlenecks in the investment climate and legal frameworks for venture capital activities in Vietnam, thus encouraging venture capital funds to invest in businesses, startup projects and innovation initiatives, he went on.