From Shanghai: the question is no longer simply “Why Vietnam?”
On 18 September 2026, ECOVIS Vietnam Law joined ECOVIS colleagues and industry professionals in Shanghai for the Qiushiyuan Cross-Border Investment Policy & Practical Implementation Seminar, focused on Chinese semiconductor companies expanding internationally.
The programme brought together representatives of the Qiushiyuan Semiconductor Alliance and professional advisers from China, Vietnam, Malaysia and Spain. Attorney Vu Manh Quynh, Managing Partner of ECOVIS Vietnam Law, presented the Vietnam session under the theme “Vietnam as Your Next Manufacturing Base.”
The discussion started from a proposition that is increasingly important for Chinese manufacturers:
Vietnam should not be viewed as a replacement for China. It can instead serve as a complementary manufacturing and operating platform within a regional and global supply-chain architecture.
This distinction matters. China already has extraordinary depth in semiconductor R&D, engineering, equipment, capital and supplier networks. For many companies, the commercial question is therefore not whether to leave China, but which parts of the value chain should remain in China, which capabilities should be duplicated in Vietnam, and which activities should be developed in Vietnam for global customers. This was the central framework of the Vietnam presentation in Shanghai.
Vietnam already has the industrial base to make this question relevant
Vietnam’s total merchandise trade reached approximately US$930.05 billion in 2025, according to the National Statistics Office. Exports of electronics, computers and components reached approximately US$107.7 billion, making this the country’s first export category to exceed US$100 billion.
Those numbers matter because semiconductor investment does not develop in isolation. Chip design, packaging, testing, precision engineering, machinery, PCB, EMS, components and supporting industries all benefit from an existing electronics manufacturing ecosystem.
Vietnam had also attracted more than 170 foreign-invested semiconductor projects with almost US$11.6 billion in registered capital by late 2025. Government sources identify chip design and packaging/testing as two of the principal segments already attracting investment.
The investment thesis, therefore, is not based solely on future policy ambition. There is already an industrial platform on which further semiconductor investment can build.
Vietnam’s semiconductor strategy gives investors a clear policy signal
Under Decision 1018/QD-TTg, Vietnam has adopted a semiconductor industry development strategy through 2030 with a vision toward 2050. For the period to 2030, the Government targets:
- at least 100 semiconductor design companies;
- one small-scale semiconductor fabrication plant;
- 10 packaging and testing facilities;
- more than 50,000 engineers and university graduates in the semiconductor workforce;
- semiconductor industry revenue exceeding US$25 billion per year; and
- electronics industry revenue exceeding US$225 billion per year.
These figures should be understood correctly: they are policy targets, not current capacity. For investors, however, they show where Vietnam intends to direct public policy, infrastructure, talent development and investment support.
The strategy also expressly calls for selective attraction of high-technology foreign investment, investment-support mechanisms and facilitation for semiconductor-related imports, supporting industries and R&D.
Where are the most practical investment opportunities?
“Semiconductor investment” is too broad a category for a meaningful investment decision. Different parts of the value chain require fundamentally different conditions.
1. IC design and R&D
Vietnam’s growing pool of engineers, expanding university programmes and national workforce strategy make chip design and semiconductor R&D an important opportunity.
This segment is relatively asset-light compared with fabrication but highly dependent on talent, IP protection, compensation structures and retention. For Chinese technology companies, a Vietnam design or R&D team may also serve as part of a broader regional engineering structure rather than as a standalone operation.
2. Packaging, assembly and testing
This is one of the areas where Vietnam is already developing meaningful capabilities. Government data identifies packaging and testing as a major component of existing semiconductor FDI, while national policy targets at least 10 packaging/testing facilities by 2030.
For many investors, this segment may present a more immediately executable opportunity than advanced wafer fabrication. Key considerations include clean-room specifications, utilities, specialised machinery, customs treatment, chemical management, environmental approvals and skilled technicians.
3. Semiconductor equipment, materials and supporting industries
This may be one of the less discussed but commercially significant opportunities. A growing electronics and semiconductor base creates demand for:
- precision components;
- production equipment;
- clean-room systems;
- chemicals and specialty materials;
- industrial automation;
- testing equipment;
- packaging materials; and
- logistics and bonded supply-chain services.
For companies already supplying semiconductor manufacturers in China, Vietnam can potentially become a customer-proximity investment rather than an entirely independent market.
4. Electronics and EMS
Vietnam’s US$107.7 billion electronics, computer and component export base demonstrates the scale already present in this segment. This ecosystem can support semiconductor-adjacent investment in electronics manufacturing services, components, industrial electronics, IoT equipment and downstream applications.
5. Wafer fabrication
Fabrication represents a different class of investment. The legal entity is rarely the difficult part. The critical questions are power, water, redundancy, process water, wastewater, chemicals, technology transfer, clean-room infrastructure, CAPEX and long-term operating reliability.
Vietnam’s strategy clearly seeks to build domestic fabrication capability, but an investor considering a fab must treat the project first as an infrastructure and technology feasibility exercise and only second as a corporate-registration exercise.
North or South? Location must follow the manufacturing process
Location selection is one area where investors frequently start with the wrong question. The question should not be “Where is industrial land cheapest?” For semiconductor and advanced manufacturing, the correct question is: “Which location can reliably operate our specific manufacturing process?”
Northern Vietnam offers particularly strong connections with China’s manufacturing base and dense electronics clusters around areas such as Bac Ninh, Hai Phong, Hanoi and Thai Nguyen.
Southern Vietnam offers the greater Ho Chi Minh City industrial ecosystem, Dong Nai, major engineering and business services, and strong port connectivity.
But neither North nor South should be selected simply on headline rental prices. Before making a binding commitment, investors should verify at least:
- available power capacity and redundancy;
- water quantity and required water quality;
- wastewater treatment capacity;
- chemical storage and handling;
- clean-room and structural specifications;
- logistics and customs arrangements;
- expansion rights; and
- whether the site’s legal and environmental approvals accommodate the intended process.
Our site selection scorecard for manufacturing investment sets out how these criteria can be weighted before a site is shortlisted. This was a central message of the Shanghai presentation:
“Do not choose the cheapest industrial land. Choose the site that can actually run your process.”
The investment regime is becoming more supportive — but incentives must be modelled carefully
Vietnam’s legal framework for investment has changed materially. The new Law on Investment No. 143/2025/QH15 took effect on 1 March 2026, with Decree 96/2026/ND-CP providing implementing guidance from 31 March 2026.
Separately, Vietnam established the Investment Support Fund under Decree 182/2024/ND-CP. For eligible businesses and projects, the Fund can support qualifying expenditure such as:
- workforce training;
- R&D;
- investment in fixed assets;
- production of high-tech products; and
- certain initial investment costs.
Official investment authorities note that eligible support can reach up to 50% of qualifying workforce-training costs, up to 30% of qualifying R&D expenditure, and up to 10% for certain fixed-asset investment costs, depending on the category of enterprise and the applicable conditions. Certain qualifying semiconductor and AI R&D centres may also access support for initial investment costs.
This represents an important shift: Vietnam is increasingly combining traditional tax incentives with expenditure-based investment support. That development is particularly relevant for large multinational groups affected by the OECD Global Minimum Tax, because a headline tax holiday does not necessarily equal the same economic benefit once Pillar Two is taken into account.
The practical rule for investment committees should therefore be:
Do not put an incentive into the financial model until the project has been tested against the actual qualification requirements.
“Semiconductor” alone is not a sufficient qualification. Technology, products, investment scale, location, R&D content, high-tech status, implementation milestones and the investor’s global tax position can all affect the result. We discuss the review points in more detail in Tax Incentives for Foreign Investors in Vietnam: What Companies Should Review Before Relying on Them.
Chinese investment into Vietnam is already moving at scale
The China–Vietnam investment story is no longer theoretical. In the first seven months of 2026, Chinese investors registered 849 new investment projects in Vietnam, representing approximately 35% of all newly registered FDI projects during the period, according to the Foreign Investment Agency.
China also recorded approximately US$3.69 billion in total registered investment capital, ranking fourth by capital but first by number of new projects.
This distinction is significant. Large headline investment projects attract attention, but the very high number of Chinese projects indicates something broader: a deepening pipeline of manufacturers, suppliers, service providers and mid-sized enterprises entering Vietnam. For semiconductor and advanced-manufacturing companies, this creates a reinforcing ecosystem of customers, suppliers and China–Vietnam operating experience.
A Vietnam factory does not automatically create Vietnamese origin
For China-linked manufacturing investment, rules of origin deserve board-level attention. A factory located in Vietnam does not automatically transform Chinese inputs into Vietnamese-origin goods. Origin must be assessed against the applicable rules for the product and destination market.
The commercial implications can be significant for:
- preferential FTA tariffs;
- trade-remedy investigations;
- anti-circumvention risk;
- customs documentation; and
- customer representations about product origin.
An investment model that depends primarily on changing the shipping route or product label is therefore inherently risky. Vietnam should be used as a real manufacturing platform, supported by genuine operations, equipment, employees, value creation and supply-chain substance. Our customs and supply chain legal FAQ for international manufacturers covers the related compliance questions.
The biggest factory risk often lies between advisers
Foreign factory investment requires multiple workstreams to move together: investment licensing, corporate, industrial land, construction, environment, fire safety, customs, tax, and labour and immigration.
A company can obtain an Investment Registration Certificate and Enterprise Registration Certificate while still being far from legal commercial production. Typical sources of delay include:
- committing to the site before technical and legal due diligence;
- describing the project too generically in the investment application;
- starting environment or fire-safety work too late;
- shipping machinery before customs planning;
- mobilising foreign specialists before work permit and immigration planning; and
- discovering that investment incentives assumed by management are not actually available.
The question for management should therefore not be “How quickly can we incorporate?” It should be: “What is the regulatory critical path from board approval to commercial production?” That was the execution framework presented in Shanghai.
What should an investor do in the first 90 days?
For investors seriously considering Vietnam, incorporation should not necessarily be the first step. A disciplined first 90 days might look as follows.
Days 0–30: define the investment case
- define the exact product and manufacturing process;
- map inputs and customer markets;
- identify imports and exports;
- screen two or three potential locations;
- conduct preliminary legal, tax and incentive analysis.
Days 31–60: test the assumptions
- conduct site visits and due diligence;
- verify utilities;
- assess environmental and construction requirements;
- determine investment and financing structure;
- test tax, customs and incentive assumptions.
Days 61–90: prepare for execution
- select site and corporate structure;
- negotiate conditional land/factory documentation;
- prepare investment-registration documentation;
- develop the permit and implementation roadmap.
The appropriate decision at the end of this stage should be GO, MODIFY or STOP — before major irreversible capital has been committed.
The opportunity: Vietnam as part of a China-connected regional manufacturing architecture
The most useful conclusion from the Shanghai discussion is not that Vietnam is “cheaper than China”. That argument is too narrow. The stronger investment thesis is that Vietnam can become a complementary platform within a China-connected regional manufacturing architecture.
For the right project, Vietnam can offer:
- an established electronics manufacturing base;
- growing semiconductor investment;
- increasingly targeted national semiconductor policy;
- integration with Chinese suppliers;
- developing engineering talent;
- investment and high-tech support mechanisms;
- access to multiple international trade frameworks; and
- a location from which manufacturers can serve regional and global customers.
The opportunity is meaningful. But it is also selective. A successful investment depends on matching the right activity, the right site, the right structure and the right incentive regime before capital is committed.
For semiconductor companies, that distinction can determine whether Vietnam becomes merely another legal entity — or a genuinely productive second operating platform.
How ECOVIS Vietnam Law can assist
ECOVIS Vietnam Law advises foreign investors on the legal and regulatory execution of manufacturing and high-tech investments in Vietnam, including:
- investment feasibility and market-entry structuring;
- FDI licensing and corporate establishment;
- industrial land and factory due diligence;
- investment incentive and high-tech qualification review;
- factory licensing and regulatory roadmaps;
- employment and expatriate planning;
- customs and rules-of-origin coordination;
- corporate governance and post-licensing compliance; and
- M&A involving existing Vietnamese manufacturing platforms.
ECOVIS Vietnam Law Firm is a licensed Vietnamese law firm based in Ho Chi Minh City and a member of Ecovis International, a global network of around 19,000 people in more than 90 countries whose member firms also provide accounting, audit and tax services. Through the network, projects can be coordinated with ECOVIS professionals in China and other relevant jurisdictions where cross-border tax, accounting, audit or legal input is required. Answers to common investor questions are collected in our Vietnam FDI Legal FAQ Hub.
Attorney Vu Manh Quynh is the Managing Partner of ECOVIS Vietnam Law, advising international investors on Foreign Direct Investment (FDI), manufacturing projects and corporate governance in Vietnam.
Considering a semiconductor or advanced-manufacturing investment in Vietnam?
ECOVIS Vietnam Law can support investors with project feasibility, FDI structuring, industrial site due diligence, investment licensing, factory setup, incentive review, employment and post-licensing compliance. Contact our team to discuss your project.
This article is for general informational purposes only and does not constitute legal, tax, customs or investment advice. The availability of investment incentives, tax treatment and regulatory approvals depends on the specific investor, project, technology, location and operating model. Project-specific advice should be obtained before making an investment commitment.
Last reviewed: 28 September 2026 · Reviewer: Attorney Vu Manh Quynh, Managing Partner
