Vietnam is exploring “breakthrough” incentives to attract foreign investors in semiconductor manufacturing, artificial intelligence and green energy, as the south-east Asian manufacturing powerhouse seeks to draw investment in high-tech industries.

Vietnam has been one of the biggest beneficiaries of a global production shift from China as companies seek to protect their supply chains from an escalating trade war between Beijing and Washington.

The country now hosts important manufacturing hubs for companies such as Samsung and Foxconn. But it has struggled to bring in investment in higher-value, high-tech industries, with investors deterred by a shortage of skilled labour and concerns about stable power supply, according to a senior government official and businesses. Vietnam faces competition for technology investment from south-east Asian countries such as Malaysia.