Vietnam is becoming a new digital powerhouse in Southeast Asia, with flexible policies that open up opportunities for technological investment, analysts told the “Industrial Electronics Investment” convention held by VnEconomy, the Vietnam Association of Foreign Invested Enterprises (VAFIE), and Invest Global.
Vietnam’s electronics industry now accounts for 17.8 per cent of all industry, primarily producing electronic products, computers, and components. Major global names are involved, such as Samsung, Qualcomm, and Intel, which have already invested substantial sums in the country.
“According to CSIS, Vietnam is currently applying many policies, including tax incentives, to create a more favorable environment for technology investment,” said Mr. Dao Quang Binh, General Director and General Secretary of VnEconomy. “As a developing economy, Vietnam’s digital market has huge potential and promise.”
The Vietnamese Government has introduced various incentives for technological investment, especially high-technology. Corporate income taxes, for example, are 10 per cent for a period of 15 years, exempted for four years, and subject to a 50 per cent reduction for the following nine years. Vietnam also possesses an abundant workforce, who are considered fast learners. Moreover, it also has key mineral resources to develop the electronic materials industry, and, most importantly, has a stable political situation.
“Corporations and companies in the field of electronics in India in particular and around the world in general will certainly have many opportunities and success when investing in Vietnam,” said Mr. Nguyen Van Toan, Vice President of VAFIE. “Investments in the industrial electronics sector can be made in the form of joint ventures, purchasing shares in Vietnamese enterprises, or 100 per cent foreign capital without any restrictions or conditions, with conditions mainly relating to service projects.”