In mid-2024, the Ministry of Planning and Investment (now the Ministry of Finance) reported on a draft decree establishing, managing, and utilizing the Investment Support Fund. At that time, the ministry highlighted that Vietnam’s investment incentives were not aligned with the new global context, leading several major corporations to shift their investments to other countries after initially considering Vietnam.
Notably, LG Chemical proposed a battery production project, requesting Vietnam to cover 30% of production costs in cash, but later moved to Indonesia. Similarly, Intel proposed a $3.3 billion chip manufacturing project, seeking a 15% cash subsidy from Vietnam, but ultimately relocated to Poland.
On the last day of 2024, the Government issued Decree 182/2024 on the establishment, management, and utilization of the Investment Support Fund to adapt to these developments.
By September 2025, South Korea’s LG Group demonstrated its commitment to Vietnam by seeking approval for approximately VND 2,493 billion in support from this fund.
Specifically, LG Display Vietnam Hai Phong requested VND 1,650 billion for activities aligned with Decree 182/2024, including workforce training, research and development, fixed asset investment, and high-tech product manufacturing costs.
LG Electronics Vietnam Hai Phong sought VND 441.3 billion for the same four cost categories, while LG Innotek Vietnam Hai Phong requested VND 402 billion for these expenses.
Regarding eligibility, LG Display Vietnam Hai Phong is investing VND 177,240 billion (USD 7 billion) in Hai Phong, meeting the minimum capital requirement.
LG Electronics Vietnam Hai Phong reported VND 109,553 billion in revenue for 2024, satisfying the minimum revenue criterion.
LG Innotek Vietnam Hai Phong achieved VND 99,380 billion in 2024 revenue, also meeting the minimum revenue threshold.
Currently, these three LG units employ approximately 27,800 workers in the city, with LG Display Vietnam Hai Phong leading at nearly 20,000 employees.
Several Hai Phong agencies, including the Department of Finance, Department of Industry and Trade, Department of Science and Technology, Department of Home Affairs, and the City Tax Department, have expressed their support for this initiative.
The Ministry of Planning and Investment: Global Giants Stall on Billion-Dollar Mega-Projects in Vietnam Due to One Crucial Reason
In recent times, there has been a formal discussion among several large corporations regarding the pausing of new investment plans. These corporations have expressed that they will halt their investment initiatives if the government does not implement appropriate supportive policies.
What Industries Are Eligible for Investment Support Grants?
The Ministry of Planning and Investment proposes that the beneficiaries of investment support from the Investment Support Fund be: High-tech enterprises; businesses with investment projects in high-tech product manufacturing; businesses with projects on high-tech application; and businesses with investment projects in research and development centers.
