Vietnam is eligible to develop a domestic semiconductor ecosystem, Minister of Planning and Investment Nguyen Chi Dung affirmed at the Vietnam Business Summit, which took place in Hanoi on Friday.

The minister pinpointed five advantages for the establishment of a semiconductor ecosystem in Vietnam.

He underlined that Vietnam has a stable political system and boasts a favorable geographical location, while the government is prioritizing the growth of the semiconductor industry.

The government tasked the Ministries of Planning – Investment, and Information – Communications, and other relevant agencies and departments with mapping out a plan to foster the industry.

Vietnam is working to develop a workforce of 50,000 engineers and experts in the semiconductor sector by 2030.

Besides, an abundant labor source in the technological field will help the semiconductor industry thrive, Minister Dung explained.

Representatives attend the Vietnam Business Summit in Hanoi on September 29, 2023. Photo: Duy Linh / Tuoi Tre

Vietnam is home to a host of prestigious research facilities and training centers for the semiconductor industry, and many healthy firms which are willing to support the sector such as military-run telecom group Viettel, telecoms giant VNPT, and tech firm FPT.

In addition, Vietnam has been stepping up efforts to attract major semiconductor firms from the United States, South Korea, and Taiwan.

Notably, Vietnam and the U.S. elevated their ties to comprehensive strategic partnership on September 10, and were committed to join hands to develop the semiconductor industry.

The Southeast Asian nation has been offering various incentives and preferential policies to tech enterprises.

Moreover, Vietnam houses the National Innovation Center, and three hi-tech industrial zones in Ho Chi Minh City, Hanoi and Da Nang, making the nation ready to welcome foreign semiconductor investors.

Addressing the summit, Linda Tan, president of the Southeast Asia Semiconductor Association (SEMI SEA), said that the semiconductor development in Vietnam will contribute to the growth of the industry in the region.

Assessing the potential for the semiconductor industry in Southeast Asia, Deputy Minister of Information and Communications Nguyen Huy Dung said that Vietnam has the advantage of workforce, while Thailand and Singapore have dominance in infrastructure and technology.

Nguyen Thien Nghia, deputy head of the Bureau of Information and Communications Technology (ICT) Industry, said that Vietnam’s ICT industry has grown impressively.

In 2022, the nation was ranked second for phone exports in the world, and became the sixth-largest computer part exporter.

Vietnam has some 300,000 engineers, 1.6 million workers and 42,000 companies active in the technological sector, Nghia said, adding that the nation is home to numerous firms specializing in designing, testing and assembling chips.

Clark Tseng, senior director at SEMI SEA, said that Vietnam is moving toward becoming a hub of activities associated with the semiconductor industry.

Many international tech groups are doing business in Vietnam such as Intel, Samsung and Amkor.

Investment in Vietnam has been expanded to chip design thanks to the abundance of young skilled workers.

Workforce is seen as a key factor to spur the semiconductor industry.

Tseng expects Vietnam’s semiconductor industry to boom in the future.

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