ENTERPRISE

Article 5 of Resolution No. 58/2024/NQ-HDND stipulates support policies for organizations and enterprises operating in the semiconductor and artificial intelligence (AI) sectors as follows:

1. Applicable Entities

Organizations and enterprises leasing information infrastructure assets and meeting the following conditions:

a) Legally established under the Enterprise Law, headquartered and registered for tax declaration in Da Nang City;

b) Operating and generating revenue in the semiconductor or AI sectors:

• Micro-enterprises: Minimum revenue of VND 100 million/year;

• Small enterprises: Minimum revenue of VND 500 million/year;

• Medium and large enterprises: Minimum revenue of VND 2 billion/year;

c) Not in arrears on taxes or social insurance contributions at the time of applying for support.

2. Support Content and Level

a) Support for rental expenses of information infrastructure assets (excluding service costs):

• Micro and small enterprises: 50% of rental cost, up to VND 200 million/year;

• Medium and large enterprises: 25% of rental cost, up to VND 250 million/year;

b) The support period shall not exceed two years per enterprise.

Article 7 of Resolution No. 58/2024/NQ-HDND stipulates support for initial setup costs for leasing unfinished infrastructure assets (without flooring, ceiling, lighting, internal network):

a) Support of VND 100,000/m², up to VND 200 million per entity;

b) Each entity may receive this support only once.

Article 6 of Resolution No. 58/2024/NQ-HDND stipulates support policies for innovative startups and investment projects in the semiconductor and AI sectors as follows:

1. Applicable Entities

a) Startup investment projects conducted and applied in Da Nang City with the following conditions:

• Engage in research, development, application, or technology transfer of prioritized technical solutions; develop new investment or cooperation models;

• Commit to and be responsible for using allocated space for the intended purpose.

b) Startup enterprises in these sectors must:

• Carry out innovative activities leveraging intellectual property, novel business models, and high growth potential;

• Be operating for no more than five years since their first business registration;

• Be legally established and headquartered in Da Nang City;

• Commit to appropriate use of allocated space.

2. Support Content and Level

Free allocation of up to 100m² of space in product development and training zones for semiconductors and AI, with a maximum duration of 3 years per project or enterprise.

3. Revocation Clause

Enterprises or project owners failing to fulfill their commitments will have their allocated space revoked.

Article 4 of Resolution No. 59/2024/NQ-HDND defines the activities of semiconductor enterprises, including:

1. Design

a) Participation in full or partial stages of chip architecture, logical design (Front End), and physical design (Back End);

b) Design and provision of Electronic Design Automation (EDA) software and tools;

c) Supply of IP cores and related services;

d) R&D and training in semiconductor design, manufacturing, packaging, and testing.

2. Manufacturing

a) Semiconductor manufacturing and chip fabrication;

b) Production of materials, tools, and equipment for semiconductor production, such as:

• Wafer, photomasks;

• Semiconductor materials (e.g., silicon, GaN, ZnO);

• Components (transistors, ICs, PCBs, memory);

• OEM/ODM electronics (excluding assembly-only companies);

• Equipment (photolithography machines, wafer polishers, etc.).

3. Packaging and Testing

Partial or full participation in chip packaging and testing processes.

Article 6 of Resolution No. 59/2024/NQ-HDND specifies the criteria and conditions to qualify as a semiconductor enterprise:

• Active enterprise legally established in Da Nang;

• Registered with specific business codes (e.g., 2610, 7212, 5820, etc.);

• Employing semiconductor professionals;

• Investing in or generating revenue from semiconductor activities.

Article 5 of Resolution No. 59/2024/NQ-HDND defines AI enterprise activities in areas such as:

1. Infrastructure

• Providing high-performance computing infrastructure (e.g., GPU, NPU);

• Supporting simulation models.

2. Data

• Data collection, labeling, annotation, QA, augmentation, management;

• Data mining and classification using machine learning techniques.

3. Applications

• Computer vision systems (e.g., facial, biometric recognition);

• Speech processing (e.g., speech-to-text, text-to-speech);

• NLP systems (e.g., handwriting recognition, translation, digital assistants);

• Behavior analytics, anomaly detection, expert systems, autonomous systems;

• Generative AI systems.

Article 7 of Resolution No. 59/2024/NQ-HDND sets out the criteria and conditions for AI enterprises in Da Nang:

• Participation in activities defined in Article 5;

• Legally established in Da Nang with registration under AI-specific codes per Decision No. 1354/QD-BTTTT;

• Employing AI personnel;

• Engaging in AI-related investment, revenue, or product development.

Article 8 of Resolution No. 59/2024/NQ-HDND outlines criteria to determine individuals eligible for income tax exemption when working in design, production, packaging, and testing at semiconductor and AI enterprises:

1. A valid labor or expert contract with a recognized enterprise, including job descriptions relevant to the semiconductor or AI fields.

2. Documentation proving involvement in related professional activities.

Article 10 prescribes the procedures for tax exemption under Article 14 of Resolution No. 136/2024/QH15:

a) Personal Income Tax Exemption: Individuals must present supporting documents and an enterprise certification issued by the Department of Information and Communications to the Tax Department during annual tax finalization.

b) Corporate Income Tax Exemption: Organizations must present similar documentation when filing for exemption on capital transfers or equity contributions in certified semiconductor or AI enterprises.

Article 11 clarifies the timing of tax benefits:

• Exemption takes effect from the issuance date of the certification by the Department of Information and Communications;

• Applies to pre-existing shareholders or contributors from the date of certification.