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| The semiconductor industry in Bắc Giang Province is projected to require approximately 6,300 workers between 2025 and 2030. VNA/VNS Photo Đồng Thúy |
HÀ NỘI — Việt Nam has become a safe destination for the global semiconductor industry, evidenced by the growing trend of leading technology corporations planning to shift their supply chains to the country, establish research centres and expand their investment and production activities in the sector, according to ministers.
Minister of Information and Communications Nguyễn Mạnh Hùng noted that major semiconductor companies are increasingly seeking additional destinations for their global semiconductor operations, with Việt Nam proving to be a safe and viable option for this industry.
Hùng remarked that Việt Nam's semiconductor industry revenue is expected to reach US$ 18.23 billion in 2024, reflecting an 11.5 per cent growth rate, which aligns with the global average.
On September 21, 2024, Prime Minister Phạm Minh Chính approved the Việt Nam semiconductor industry development strategy towards 2030, with a vision to 2050.
The strategy outlines a development pathway for the country's semiconductor industry based on the formula C = SET + 1, where C stands for chip, S for specialised semiconductor chips, including AI chips, IoT chips and chips for electronic devices, E for the electronics industry, and the T for talent. The +1 refers to a strategy for attracting foreign investment to enrich the semiconductor industry's supply chain.
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| Prime Minister Phạm Minh Chính meets with John Neuffer, President of the US Semiconductor Industry Association (SIA), in Hà Nội on December 10, 2024, to discuss collaboration. VNA/VNS Photo Dương Giang |
On December 10, PM Chính met with John Neuffer, President of the US Semiconductor Industry Association, and representatives of leading US semiconductor companies visiting Việt Nam to explore investment opportunities, primarily under the +1 approach.
This approach aligns perfectly with the +1 strategy, aimed at attracting FDI (foreign direct investment) across all stages of the semiconductor industry's supply chain in Việt Nam.
The minister emphasised that Việt Nam must achieve higher growth than the global average in this sector by 2025.
In November 2024, the ministry issued guidelines to implement the strategy for ministries, sectors, localities, enterprises and related organisations. So far, ten localities, including HCM City, Hà Nội, Đà Nẵng, Bình Định, Quảng Trị, Lai Châu, Phú Thọ, Gia Lai and Bình Phước, have developed plans or proposals for executing the strategy.
For Việt Nam, the semiconductor supply chain is in its early stages, with efforts primarily concentrated on two key areas, including chip design and assembly, packaging and testing.
Sharing the same opinion, Minister of Planning and Investment Nguyễn Chí Dũng said that Việt Nam is becoming an appealing destination for investors in the semiconductor industry.
Currently, the country hosts 174 FDI projects in the semiconductor field, with total registered capital approaching US$11.6 billion.
Dũng emphasised that Việt Nam has taken decisive actions, including establishing the National Steering Committee for Semiconductor Industry Development, launching the Human Resources Development Programme, and implementing the Semiconductor Industry Development Strategy.
In terms of attracting investment and supporting the semiconductor ecosystem, the Ministry of Planning and Investment has engaged with leading technology corporations such as Qualcomm, Google, Meta, LAM Research, Qorvo and AlChip. These companies have outlined plans to shift their supply chains to Việt Nam.
Notably, the ministry has established a task force for cooperation and negotiation with NVIDIA, the world’s leading technology corporation, to formalise collaboration plans. This effort culminated in a groundbreaking agreement.
On December 5, 2024, a cooperation agreement was signed between Việt Nam and NVIDIA to establish a research and development centre and an AI Data Centre in Việt Nam. This agreement is seen as a critical catalyst for the country's technological leap forward, drawing significant attention from the global tech community and other nations.
HCM City, Đà Nẵng, Bắc Ninh, Bắc Giang, Vĩnh Phúc and Bình Dương have actively promoted the development of the semiconductor ecosystem and workforce, attracting investment and fostering international cooperation.
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| A conference on semiconductor industry cooperation between Việt Nam and South Korea was held in Hà Nội on August 6, 2024. VNA/VNS Photo Việt Đức |
Dũng noted that investors highly appreciate Việt Nam's initiatives and efforts in the semiconductor sector. Many companies have demonstrated strong commitments, highlighting Việt Nam's importance as a market and announcing plans to expand their cooperation, investment and business activities in the country.
Regarding international cooperation, Việt Nam has actively engaged in programmes under the Innovation and Technology Security Initiative (ITSI), a key component of the US CHIPS Act. This includes support for training 120 lecturers and 4,000 students and developing chip packaging and testing training programmes for 20 universities in Việt Nam.
Việt Nam is also accelerating semiconductor and AI-related projects in collaboration with Japan, Taiwan (China) and South Korea.
Advancing the semiconductor industry
Minister of Planning and Investment Dũng proposed that the National Steering Committee for Semiconductor Industry Development focus on completing three key pillars, including regulatory frameworks and policies, infrastructure and high-quality human resources.
He emphasised the importance of attracting global Vietnamese talent to contribute to the domestic semiconductor industry.
Dũng stated that Việt Nam has a significant opportunity to integrate deeply into the semiconductor industry's global value chain. This requires active participation from ministries, sectors, local governments, enterprises, research institutes, universities and experts both domestic and international.
Minister Hùng of Information and Communications called for the swift completion and issuance of policies and decrees related to establishing, managing and using the Investment Support Fund.
This includes guidelines for the newly amended Investment Law to create special mechanisms for strategic investors and multinational corporations while supporting domestic enterprises.
The ministry also proposed revisions to import-export regulations to reduce logistics costs and streamline procedures. For instance, the turnaround time for import-export activities should align with regional standards, such as Malaysia and the Philippines, which are two to three hours.
Hùng stressed the need for adequate and stable supply systems for electricity and water to meet production demands, as well as robust wastewater and hazardous material treatment facilities to ensure environmental protection. He suggested that the Ministry of Industry and Trade, the Ministry of Natural Resources and Environment, along with local governments evaluate and upgrade relevant infrastructure.
To accelerate the industry, Hùng proposed assigning tasks to leading Vietnamese corporations, such as having Viettel develop the first semiconductor production facility. Additionally, the establishment of a Vietnam Semiconductor Industry Database and a set of criteria to evaluate its development was recommended, alongside creating annual plans for the sector, starting with 2025.
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| Students working in the High-Frequency IC and Systems Laboratory at HCM City's University of Technology, part of Việt Nam National University. VNA/VNS Photo Thu Hoài |
Minister of Education and Training Nguyễn Kim Sơn noted that it was vital to prepare a high-quality workforce for this industry.
He said, as of mid-2024, universities begun training approximately 18,000 students for the semiconductor industry. The ministry is also finalising a standard curriculum for semiconductor design and production, slated for completion by the first quarter of 2025.
Efforts are being made to promote STEM education at the school level, encouraging students to pursue careers in high-tech industries, including semiconductors.
Recently, the Ministry issued Plan 1758, which outlines actions to implement Decision 1018 on Việt Nam’s Semiconductor Industry Development Strategy to 2030, with a vision to 2050 and Decision 1017 on the Human Resources Development Programme for the Semiconductor Industry to 2030, with a vision to 2050.
In 2025, the ministry plans to review and propose policies for tuition exemptions, reductions and scholarships for students studying semiconductor-related disciplines domestically and abroad. It also aims to strengthen collaborations between government, academia and industry to develop a skilled workforce. – VNS
