Semiconductor Industry Development Strategy in Vietnam: A Promising Start

Vietnam is emerging as an attractive destination for investors in the semiconductor industry. In the semiconductor industry value chain, Vietnam is currently involved in the following stages: design, testing, packaging of microchips, manufacturing of semiconductor-related equipment and materials.

Vietnam is taking strong steps to develop the semiconductor industry.

Semiconductor industry development is a common trend of the world in the context of the Fourth Industrial Revolution and continues to be an inevitable trend in the future; is an objective need, a strategic choice, a top priority; needs to continue to be comprehensively implemented, including strong investment in human resource development; continues to make institutional breakthroughs and invest in upgrading and perfecting infrastructure; international cooperation with countries, economies, and large technology corporations in the world.

Vietnam has strategic advantages in developing the semiconductor industry such as rare earth reserves among the top in the world, favorable geographical location in the center of the main production area of ​​the global semiconductor industry, abundant human resources and great potential.

Vietnam has established a public service unit in the field of economic career, the National Innovation Center (NIC), as well as the Ho Chi Minh City High-Tech Park, Hoa Lac (Hanoi), Da Nang and many standard industrial parks, which are potential destinations in the process of shifting the semiconductor production chain and attracting FDI capital from large semiconductor technology corporations in the world such as: Amkor, Samsung, Hana Micron, Foxconn, LAM Research, Coherent, Intel.

Vietnam has many good IT companies and investors such as Viettel, FPT, Phenikaa, which are implementing development strategies and promoting specific projects in the semiconductor field. We are starting to have potential semiconductor startups such as Infrasen, VnChip, Hyphen Deux.

Currently, Vietnam has more than 50 microchip design enterprises with an estimated workforce of more than 6,000 engineers, 7 packaging and testing factories, with about 6,000 engineers and more than 10,000 technicians; enterprises manufacturing equipment and materials for the semiconductor industry such as Samsung, Seojin, Coherent... have also begun operations.

Many leading technology corporations such as NVIDIA, Qualcomm, LAM Research, Qorvo, AlChip... have shifted their supply chains to Vietnam to develop research centers, expand investment, business and production in Vietnam. Accordingly, Vietnam currently has 174 FDI projects in the semiconductor sector with a total registered capital of nearly 11.6 billion USD.

Vietnam has actively promoted deepening relations with key and potential partners in the semiconductor field, making economic and scientific-technological cooperation the key content of partnership frameworks, effectively exploiting cooperation opportunities from upgrading and enhancing investment and technological relations such as the United States, South Korea, Japan, Taiwan (China), India, etc. At the same time, there is close cooperation with relevant partners of the Netherlands, France, Germany, Belgium, etc. to connect businesses, universities, research institutes, as well as granting scholarship programs for Vietnamese students and lecturers to study and work in the semiconductor field in Europe, etc.

The above results are evidence of the efforts and drastic actions of leaders at all levels, especially the Government, Prime Minister, ministries, localities, training institutions and the business community in the development of the semiconductor industry...

Focus on developing human resources, institutions and infrastructure

The Government Office also issued Notice No. 05/TB-VPCP on the conclusion of the National Steering Committee on Semiconductor Industry Development. The Notice clearly stated that in the coming time, Vietnam must consider the development of human resources, institutions and infrastructure for the semiconductor industry as a comprehensive strategy; it is necessary to focus on implementation and investment commensurate with strategic breakthroughs. There are breakthrough policies and mechanisms for training high-quality human resources in the spirit of equality, simplicity and convenience for relevant entities to implement.

The Party directs, the National Assembly agrees, the people support, the nation expects, so we only discuss action, not retreat. There must be specific steps and directions, high determination, great efforts, drastic and effective actions, with focus and key points; each task must be completed; the assignment must be clear to the person, the task, and the results; during the implementation process, we must urge, inspect, and supervise.

Promote the responsibility of leaders, strengthen decentralization and delegation of authority along with resource allocation, improve the capacity of subordinates, and link with inspection, supervision and control of power.

Promote public-private cooperation, domestic and international cooperation; unleash and utilize all resources for training and developing human resources to serve the semiconductor industry. Promote the strength of the state, enterprises, investors, and training institutions in the spirit of "harmonized benefits and shared risks".

Develop the semiconductor industry in a harmonious and balanced manner with major countries. Focus on developing design, testing, packaging centers and participating in the global value chain of large enterprises, especially in advanced packaging technology, aiming to establish semiconductor manufacturing plants and participate in the global value chain of the semiconductor industry.

Perfecting mechanisms and policies to promote the development of the semiconductor industry

Ministries, sectors and localities should accelerate the implementation of goals, tasks and solutions on administrative procedure reform, promptly direct the removal of difficulties, obstacles and barriers in administrative procedures and processes for investment and business activities in the semiconductor sector such as environmental impact assessment reports, granting of fire prevention and fighting licenses, entry visas, work permits, etc. to create favorable conditions for businesses to invest in the semiconductor sector. Support for investors should be implemented promptly, consistently and according to the one-stop mechanism.

At the same time, continue to focus on implementing tasks and solutions to develop the semiconductor industry according to the policies and orientations for developing the semiconductor industry in the Vietnam Semiconductor Industry Development Strategy to 2030 and Vision to 2050, and the Semiconductor Industry Human Resource Development Program to 2030 and Vision to 2030.

Strengthen cooperation with countries and economies that possess semiconductor manufacturing capabilities, participate in the supply chain of semiconductor products, materials and components. Attract leading enterprises in the world, especially those that play a decisive role in the semiconductor industrial ecosystem, to shift their supply chains to Vietnam, set up offices, build R&D centers and semiconductor laboratories in Vietnam. Promote partnerships with large semiconductor enterprises such as Intel, Samsung, Amkor, Hana Micron. Gradually participate in the global semiconductor value chain, transfer and gradually master the technology.

Be more determined and thorough in researching and advising on perfecting mechanisms and policies to promote the development of the semiconductor industry; focus on removing institutional obstacles to create an open and favorable investment environment, increase competitiveness to attract investors; cut down on legal compliance costs, and support domestic enterprises to participate in semiconductor development.

Localities should research and select industrial parks with favorable locations and suitable for investment, ensuring synchronous technical infrastructure (especially in terms of providing stable power sources, sufficient capacity and clean water, wastewater treatment systems, and environmental sanitation) to develop the semiconductor industry; promote neighboring industrial parks and clusters to create industry linkage clusters for the semiconductor industry chain.

According to Intellectual Property

Source: https://doanhnghiepvn.vn/cong-nghe/chien-luoc-phat-trien-cong-nghiep-ban-dan-tai-viet-nam-buoc-khoi-dau-day-hua-hen/20250109113507749