Vietnam promises stable power supply to attract chip investments

Vietnam offers tax incentives to attract foreign tech investments. (Photo: iStock)

In the context of the US-China tech war, many tech companies are relocating their factories to Southeast Asian countries. To attract foreign investment in industries such as semiconductors, Vietnam has not only offered tax reductions but also promised sufficient power supply and infrastructure to avoid a recurrence of last year's power shortage crisis.

The World Bank estimates that Vietnam suffered a loss of $1.4 billion last year due to power shortages, equivalent to 0.3% of Vietnam's GDP. Amid water and power shortages, there are reports that some Taiwanese semiconductor companies are planning to withdraw from the Vietnamese market.