Ambition to join the group of leading countries in the semiconductor industry “Vietnam has strategic partnerships with many semiconductor powers. This is an opportunity for Vietnam to participate more deeply in the supply chain of the global semiconductor industry,” said Dr. Nguyen Thanh Tuyen, Deputy Director of the Department of Information Technology and Communications Industry, Ministry of Information and Communications, at the seminar “Overseas Vietnamese contribute ideas to the development of the semiconductor industry in Vietnam” recently held in Hanoi, within the framework of the 4th Conference “Overseas Vietnamese around the world”.

Dr. Nguyen Thanh Tuyen, Deputy Director of the Department of Information Technology and Communications Industry. Photo: Doan Manh

According to estimates by the US Geological Survey, Vietnam's rare earth reserves are about 22 million tons, ranking second in the world, after China. Vietnam is one of the 16 most populous countries in the world with a young population, with a talent for science, technology, engineering and mathematics (STEM), which is a unique advantage for the semiconductor industry. The country currently has about 500,000 engineers in the fields of information technology, telecommunications electronics, and automation, including 300,000 software engineers, ranking among the top 10 countries in terms of the number of IT engineers graduating each year. These are favorable conditions for the development of the semiconductor industry. The draft Strategy for Vietnam's Semiconductor Industry Development to 2030 and Vision to 2050 developed by the Ministry of Information and Communications sets quite ambitious goals for the 3-stage development roadmap of Vietnam's semiconductor industry. In phase 1 (2024-2030), Vietnam will become a global semiconductor human resource center. The human resource scale of Vietnam's semiconductor industry will reach over 50,000 engineers. The revenue scale of the semiconductor industry in Vietnam will reach over 25 billion USD/year, the added value will reach 10-15%, forming at least 100 design enterprises, 1 small-scale, high-tech semiconductor chip manufacturing factory and 10 semiconductor product packaging and testing factories. Phase 2 (2030-2040), becoming one of the global semiconductor centers by 2040. And phase 3 (2040-2050), becoming a country in the group of leading countries in the semiconductor industry by 2050. Many solutions and tasks will be deployed to soon realize these high goals. Notably, it is necessary to develop specific tax incentives for semiconductor activities in Vietnam, such as: incentives for corporate income tax, research and training organizations in the semiconductor field; incentives for personal income tax operating in the semiconductor field; increasing the deductible expense ratio to determine taxable income for research and development (R&D) activities based on the actual costs of this activity when calculating corporate income tax. "The Ministry of Information and Communications is developing the Law on Digital Technology Industry, which has included in the draft law many preferential regulations and special investment support for the development of the semiconductor industry," said Mr. Tuyen. Compensating for weaknesses thanks to the overseas Vietnamese network According to the Deputy Director of the Department of Information Technology and Communications Industry, the weaknesses in capital and human resources on the journey to turn Vietnam into a regional chip manufacturing base will be partly compensated thanks to investment in brainpower and credit resources from 6 million overseas Vietnamese around the world. Silicon Valley (USA) has about 50,000 Vietnamese people working in the technology sector, of which a significant number work on semiconductor chips. In many companies around the world, Vietnamese people participate in all stages of the semiconductor production chain, from chip design research, semiconductor material research, to testing and packaging of semiconductor chips. In recent years, many Vietnamese engineers have returned from abroad to work for FDI companies in the semiconductor sector in Vietnam and also for Vietnamese semiconductor companies.

Vietnam has many favorable conditions to develop the semiconductor industry. Photo: Binh Minh

“The Ministry of Information and Communications calls on the overseas Vietnamese business community to invest more strongly in Vietnam, focusing on the fields of chip and semiconductor manufacturing, supporting human resource training, and connecting and calling for investment in the semiconductor industry in Vietnam. Overseas Vietnamese, with extensive professional knowledge and experience working at the world's leading technology corporations, are an important resource for the development of the semiconductor industry in Vietnam,” said Mr. Tuyen, and pointed out four main areas that require the joint efforts of overseas Vietnamese. First: Research, design, and production of specialized semiconductor products. Vietnam, with a population of about 100 million people, has a relatively large market size, and is developing into a global electronics industry center. It is expected that industrial and specialized electronic equipment and IoT (Internet of Things) will have a much larger market size than consumer electronic equipment. The demand for applying semiconductor chips in industries and fields (such as new generation information technology, digital technology; robots and digitally controlled machine tools; self-driving automobile industry; agricultural machinery; healthcare, pharmaceuticals; defense, security, etc.) will increase. Overseas Vietnamese are one of the resources contributing to research and development activities, creative startups, and commercialization of specialized semiconductor products in Vietnam. Second: Improving the quality of human resources, developing a talent force in the semiconductor industry. Overseas Vietnamese, with their advantages in expertise and technology, will play an important role in supporting human resource training, supporting the construction of key semiconductor laboratories, and fostering high-quality human resources to realize the goal of the human resource scale of the semiconductor industry reaching over 50,000 engineers and bachelors by 2030. Third is attracting investment to develop the semiconductor industry. Overseas Vietnamese are a bridge, helping multinational corporations learn about and invest in Vietnam. Overseas Vietnamese working at major technology companies around the world contribute to enhancing the image of Vietnam as an attractive investment destination. The success of overseas Vietnamese in the semiconductor sector will create a ripple effect, attracting more talents to return home. "Vietnam creates all conditions in terms of infrastructure, land, electricity, water, telecommunications, tax policies, human resources, intellectual property... to create a favorable destination for semiconductor enterprises and overseas Vietnamese to invest and expand investment in Vietnam, contributing to realizing the goal of establishing at least 100 design enterprises and 10 semiconductor packaging and testing factories in Vietnam by 2030," Mr. Tuyen noted. Fourth: Support investment in building small-scale, high-tech semiconductor chip manufacturing factories. This is a strategic task to help Vietnamese engineers know how to make semiconductor chips, access advanced production management and operation technology, develop an ecosystem, and create a foundation for Vietnam to develop a domestic chip industry in the future, ensuring proactive semiconductor production for national defense and security in all situations. Overseas Vietnamese with advantages in knowledge, experience, and resources will support Vietnam in finding reliable partners, transferring technology, accessing advanced chip manufacturing technologies, and narrowing the technology gap with developed countries. "The Ministry of Information and Communications hopes that with the determination and efforts of the Government, along with the knowledge, patriotism, and enthusiasm of overseas Vietnamese to contribute to the country, Vietnam's semiconductor industry will have a strong transformation, Vietnam will soon become one of the important semiconductor centers in the world, enhancing national competitiveness," said Deputy Director Nguyen Thanh Tuyen.

Vietnamnet.vn

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