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[HO CHI MINH CITY] Armed with a bold new Investment Support Fund, Vietnam is stepping up its game to court tech giants, offset the impact of the global minimum tax (GMT) and tackle its high-tech talent crunch, with targeted workforce training that sets it apart from regional rivals.

The fund, which was rolled out this year, prioritises the semiconductor and artificial intelligence (AI) industries over other high-tech sectors, as Vietnam competes aggressively with other emerging countries to secure major investments in these areas.

Leif Schneider, lawyer and country head at international law firm Luther’s Vietnam practice, identified human capital requirements as one of the “unusual eligibility criteria” that set the fund apart in South-east Asia.

For example, it offers incentives to enterprises with microchip-design projects that employ at least 300 Vietnamese engineers and managers, and train 30 high-skilled engineers annually, without needing them to meet the minimum revenue or capital scale.

“Neither Malaysia nor Singapore – two of the most sophisticated economies in the region – have such specific and detailed requirements for human capital development in their incentive schemes,” he added.