According to the Semiconductor Industry Association, the total global revenue of the semiconductor industry reached $601 billion in 2022, making up 5.9 percent of the globe’s GDP.

With the current growth rate and digitization, the semiconductor industry would obtain a high 6-8 percent growth rate per annum from now to 2030, with revenue reaching $1.4 trillion by 2029.

Experts say that Vietnam, with advantages in geopolitical position, economy’s openness and the workforce, and initial foundation of the electronic semiconductor which have been built in the last 20 years, is believed to be a potential destination and compete with rivals to join the global supply chain.

Hoang Hung Hai from Qualcomm Vietnam said there are companies relocating production to Vietnam in the electronics industry. Many clients come to Qualcomm and plan to relocate their production facilities to Vietnam, asking for advice about partners and locations.

Hai affirmed that many manufacturers will come to Vietnam in the next three years, bringing high technologies, thus helping Vietnam speed up digital transformation. 

Linda Tan, chair of the Southeast Asia Semiconductor Association (SEMI SEA), said that Vietnam’s semiconductor industry is on the rise, with many advantages. Vietnam has been attracting more and more large economic groups in the industry from South Korea and the US. The situation is believed to be brighter after Vietnam and the US has upgraded their relationship to Comprehensive Strategic Partnership and put emphasis on cooperation to develop the semiconductor industry in the Joint Statement.

Policies 

To realize its policy on taking initiative in participating the fourth industrial revolution, Vietnam has identified hi-tech fields, especially semiconductor, as the momentum to bring opportunities to Vietnamese enterprises to join more deeply the global value chain.

Minister of Planning and Investment Nguyen Chi Dung cited potential for Vietnam to develop a semiconductor ecosystem. 

First, Vietnam has enough conditions and factors to develop the industry. It has a stable political system and advantageous geographical position. The government of Vietnam, especially Prime Minister Pham Minh Chinh, always pay high attention to fostering cooperation and investment in the semiconductor industry in Vietnam. 

MPI and other relevant ministries have been assigned to build an action plan and strategy to develop the industry in Vietnam, as well as design a plan to develop a workforce for the industry, with 50,000 engineers and specialists by 2030.

Second, Vietnam has an abundant workforce in technology, suitable to the semiconductor industry. It has research institutes and training establishments, including the Hanoi and HCM City National Universities, Hanoi University of Science and Technology. Meanwhile, its large corporations, including Viettel, VNPT, FPT and CMC, have good resources and are ready to cooperate to develop the semiconductor industry.

Third, Vietnam has been attracting more and more large corporations in the industry from the US, South Korea and Taiwan (China).

Dung affirmed that Vietnam will offer attractive investment incentives to semiconductor companies. These investment projects are considered hi-tech projects, and can enjoy the highest possible investment incentives within the legal framework.

“The government of Vietnam is quite aware of the necessity to build a favorable business environment for semiconductor groups, and to build reasonable investment policies to facilitate R&D in the industry,” Dung said.

Dung from the Ministry of Information and Communications (MIC) said Vietnam is drafting a strategy on developing semiconductor industry by 2030 which sets the goals, roadmap for development, tasks and specific preferences to develop electronics in general and semiconductor industry in particular.

The key task for now is accelerating the process of Vietnam joining the regional semiconductor ecosystem and attracting semiconductor manufacturers to come to Vietnam for R&D and production.

Nguyen Thien Nghia, deputy head of the Authority for Information and Communication Technology, says Vietnam ranks 10th in electronic exports and sixth among outsourcing countries. Vietnam is ready to do outsourcing for countries in the region and other countries, including the US, Europe, and Japan.

Thai Khang