Many tech giants plan to move their supply chains to Vietnam.

The Ministry of Planning and Investment is working with many leading technology corporations such as Qualcomm, Google, Meta... and they have plans to shift their supply chains to Vietnam.

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Vietnam currently has 174 FDI projects in the semiconductor sector.

On the morning of December 14, Prime Minister Pham Minh Chinh, Head of the National Steering Committee for Semiconductor Industry Development, chaired the first meeting of the Steering Committee.

Reporting at the meeting, Mr. Nguyen Chi Dung - Minister of Planning and Investment said that in the trend of diversifying supply chains and complex geopolitical developments in the world, Vietnam is emerging as an attractive destination for investors in the semiconductor industry.

Regarding investment attraction and support for the development of the semiconductor ecosystem, the Minister of Information of the Ministry of Planning and Investment has contacted and worked with many leading technology corporations such as Qualcomm, Google, Meta, LAM Research, Qorvo, AlChip... and has a specific plan to shift the supply chain to Vietnam, develop research centers, expand investment, business and production in Vietnam.

Minister of Planning and Investment Nguyen Chi Dung reports at the meeting.

Accordingly, Vietnam currently has 174 FDI projects in the semiconductor sector with a total registered capital of nearly 11.6 billion USD.

Especially for the world's number 1 technology corporation NVIDIA, the Prime Minister assigned the Ministry of Planning and Investment to coordinate with relevant agencies to establish 2 groups including the Working Group for Cooperation Implementation and the Negotiation Group with NVIDIA.

These two groups have discussed and worked with NVIDIA Corporation to attract investment, concretize cooperation plans and have achieved many breakthrough results, bringing great resonance and raising Vietnam's position in the region and the world as a destination for high technology, semiconductor technology and artificial intelligence.

On December 5, a cooperation agreement between the Vietnamese Government and NVIDIA Corporation was signed to cooperate in establishing a Research and Development Center and an AI Data Center in Vietnam.

The agreement is an important "push" to help Vietnam make a leap forward in technology in the coming time, with a large spillover effect, attracting the attention of other high-tech investors in the world, especially in the fields of AI and semiconductors, to invest in Vietnam; at the same time, attracting and retaining many talents in the fields of semiconductors and AI.

Immediately after signing the Agreement with the Vietnamese Government during the visit and working session of Chairman Jensen Huang, NVIDIA immediately implemented related tasks such as recruiting people, perfecting the leadership apparatus, and consolidating and attracting domestic and foreign talents to work at the Research and Development Center.

"The Ministry of Planning and Investment recognizes that investors highly appreciate Vietnam's initiatives and efforts in developing the semiconductor industry in recent times. Many businesses have expressed their commitment, affirmed that they attach great importance to the Vietnamese market, and announced their operations and plans to expand cooperation, investment and business in Vietnam in the coming time," said Mr. Dung.

There are still many challenges ahead.

Besides the achieved results, the Minister said there are still many difficulties and challenges that need to be overcome to achieve greater achievements for the Vietnamese semiconductor industry.

It is about implementing mechanisms, preferential policies and support. Semiconductor is a special industry, requiring large investment capital, high requirements on human resources and technology.

In the context of fierce competition between economies in attracting investors in the semiconductor sector, many large technology corporations have previously planned to enter Vietnam but have only stopped at the survey and exploration level and need to wait for specific incentives. Meanwhile, investment support mechanisms need time to be issued and put into practice.

Overview of the meeting (Photo: VGP).

Regarding facilities and infrastructure, although there have been efforts to improve and build new roads, railways, seaports and airports, there is still a lack of synchronization between regions and localities, a lack of connectivity, and not really fast and smooth for transporting goods.

In addition, businesses in the semiconductor industry are very interested in the ability to meet and stabilize electricity, water, wastewater treatment systems, etc. Some large corporations such as Samsung and Intel have proposed to be provided with stable, sustainable renewable energy at preferential prices. However, Vietnam's electricity system, especially clean electricity, is still limited and prone to risks during factory operations.

Regarding bilateral cooperation in the semiconductor field with major partners, the progress of implementing some cooperation contents with the United States has not yet met requirements, cooperation programs mainly focus on packaging and testing stages, and cooperation in the upstream stage is still limited.

Regarding the difficulties in implementing the tasks of the Steering Committee, the Minister said that currently, the proposal of investment projects for national laboratories and grassroots laboratories requires a lot of time to research and implement because this is a new and unprecedented content for some universities.

The Ministry of Planning and Investment has issued documents to guide and urge schools and competent authorities. To ensure the completion of the project proposal on schedule in December 2024, competent authorities and universities need to urgently organize research, consult with semiconductor experts to complete the proposal soon, and send it to the Ministry of Planning and Investment for synthesis.

Seize the rare opportunity to stand on the shoulders of giants

To continue developing the semiconductor industry in the coming time, the Ministry of Planning and Investment proposed the direction of the Steering Committee's implementation in the coming time to strengthen international cooperation, actively approach and work with large corporations and enterprises in semiconductors and artificial intelligence, especially focusing on attracting investment projects in the field of advanced packaging, a field that has the potential to create a breakthrough for Vietnam.

To realize the proposed implementation directions, the Ministry of Planning and Investment will continue to focus on and promote the implementation of tasks and solutions in the Human Resources Development Program.

Urgently complete and report to competent authorities on the issuance of the Investment Support Fund Decree, guide the implementation and promote the preferential mechanisms of the Investment Support Fund, and report to the Steering Committee to orient and direct the effective use of the Investment Support Fund.

Take the lead and closely coordinate with relevant ministries, branches and localities to promote and attract foreign projects in this field such as the US, Europe, Japan, Korea, Taiwan (China), Singapore, especially 2 Samsung projects.

Continue to coordinate with relevant agencies to promote the implementation of the cooperation agreement signed with NVIDIA Corporation.

"For the Ministry of Finance, allocate funds from other development investment expenditure sources in 2025 (estimated at 10,000 billion VND) for the Investment Support Fund to carry out the task," the Minister proposed.

Recently, the National Innovation Center (NIC) has cooperated with partners and leading technology corporations to promote cooperation in training human resources in the semiconductor industry.

The Minister of Planning and Investment believes that Vietnam can seize this "rare" opportunity to participate deeply in the semiconductor industry value chain, so it requires the participation of all ministries, sectors, localities, enterprises, research institutes, universities, and domestic and foreign experts.

"Vietnam cannot reach its destination alone. More than ever, at this important stage and opportunity, we need fast, strong and comprehensive cooperation with countries, economies and businesses, and the world's leading semiconductor partners to stand on the shoulders of giants, take advantage of human resources to become a country with a central position in Asia and the world in developing the semiconductor industry and possibly become an AI powerhouse in the future," said Mr. Dung.

Source: https://baoquangninh.vn/nhieu-dai-bang-cong-nghe-co-ke-hoach-chuyen-chuoi-cung-ung-sang-viet-nam-3334652.html