Vietnam’s Preferential Power Tariff Bid for Semiconductor Fabs
Vietnam is preparing special and preferential electricity tariffs for semiconductor manufacturers as part of its Semiconductor Industry Development Strategy to 2030, with a Vision to 2050. The plan addresses the sector’s heavy energy demands and its sensitivity to even short power disruptions.
The government has issued a directive with deadlines and has assigned responsibilities to multiple ministries to attract large-scale semiconductor investment.
Policy directive and timeline
On August 22, 2025, the government released Notice No. 439/TB-VPCP, which lays out the steps required to design and implement a tariff for chipmakers. The Ministry of Industry and Trade (MOIT) has been tasked with preparing a pricing specific to semiconductor plants and submitting it to the Prime Minister in the third quarter of 2025. The MOIT is also reviewing rules on direct power purchase agreements, renewable energy, and self-produced or self-consumed electricity under Decision 57/2025 and 58/2025. Its detailed report is due in August 2025.
The stated objective is to allow manufacturers to secure a reliable power supply at competitive rates and expand access to renewable sources of energy for operation in Vietnam.
Institutional roles beyond pricing
Electricity pricing is just one element of a wider package. The Ministry of Finance is responsible for attracting foreign investment in advanced semiconductor projects and is drafting a decision to provide credit support for students in science, technology, engineering, and mathematics (STEM). This proposal is scheduled for submission in the fourth quarter of 2025.
The Ministry of Science and Technology is working on the implementation of the “Semiconductor Industry Development Strategy to 2030, with a Vision to 2050.” It’s been directed to coordinate with other agencies and submit progress reports to the steering committee by the fourth quarter of 2025.
The Ministry of Foreign Affairs has been tasked with building international cooperation and mobilizing training resources abroad. The Ministry will be working with its diplomatic missions to keep an updated list of Vietnamese experts abroad. Provincial governments have been told to propose their own support measures and work with universities and research institutes. They would address local bottlenecks that could delay projects and impact the establishment of new semiconductor fabs.
Why electricity pricing matters for fabs
Semiconductor fabrication plants are among the most power-intensive facilities in modern industry. Electricity is one of their largest recurring costs, and disruptions can scrap production batches worth millions of dollars. For investors comparing different locations under the China+1 policy, predictable and cost-efficient power pricing becomes important.
A preferential tariff can lower expenses and ensure Vietnam competes more effectively with other chipmaking hubs.
Stable and cleaner power supply
For bringing in the electricity-intensive semiconductor industry, having an uninterrupted, clean power supply is central to Vietnam’s semiconductor ambitions. Vietnam’s new national power plan sets a target of total installed capacity of 183-236 GW by 2030 from just over 80 GW in 2023.
The projected energy mix by 2030 is:
- Solar: 25.3-31.1 percent;
- Onshore and nearshore wind: 14.2-16.1 percent;
- Coal: 13.1-16.9 percent;
- LNG: 9.5-12.3 percent.
- Nuclear: up to 6.4 GW coming online between 2030 and 2035; and
- Offshore wind: 6-17 GW targeted for the early 2030s.
To reach these goals, Vietnam will require investment of about US$136.3 billion by 2030, equal to more than one quarter of Vietnam’s GDP in 2024. Linking semiconductor tariffs to this roadmap has the benefit of giving investors the confidence that their power supply will remain both competitive and resilient throughout the life of a facility.
Execution risks in the power market
Vietnam has encountered challenges in the past with renewable energy pricing. In January 2025, the government’s retroactive changes to subsidies and tariffs for solar and wind projects created uncertainty and delayed investment. To succeed, the new semiconductor tariff will need to be stable and predictable, by having contract terms that remain valid over the long term.
The steering committee has directed ministries and provinces to actively respond to investor concerns and design policies that avoid repeating earlier disputes. Stability will be the indicator to reassure both energy developers and semiconductor companies that Vietnam can support high-value, power-dependent projects.
Investment implications and supply chain context
Vietnam is inching closer towards becoming a competitive location for chipmaking as global electronics firms diversify their supply chains due to trade risks. A preferential tariff, together with long-term clean power supply and contracts, would strengthen its case.
Multinationals like Intel and Amkor already operate in the country, and a predictable energy pricing system could attract more advanced manufacturing projects.
The Ministry of Finance is focusing on projects with high added value, modern governance, and close integration with global supply chains. If taken on priority, this could contribute both capital and expertise and link Vietnam to international networks.
In brief
The success of this initiative will depend on whether tariffs remain stable and agencies at both central and provincial levels implement policies that address practical challenges. If these conditions are met, Vietnam will be better positioned to attract long-term semiconductor investment.
