Prime Minister: Developing semiconductor industry is an inevitable need, a strategic breakthrough

Việt NamViệt Nam14/12/2024

Prime Minister Pham Minh Chinh requested to perfect institutions and policies in an open direction, prioritizing resource attraction; and soon establish a Fund to support investment in developing the semiconductor industry.

The Prime Minister speaks at the first meeting of the National Steering Committee on Semiconductor Industry Development. (Photo: Duong Giang/VNA)

On the morning of December 14, chairing the first meeting of the National Steering Committee for Semiconductor Industry Development (Steering Committee), Prime Minister Pham Minh Chinh, Head of the Steering Committee, requested the development of mechanisms and preferential policies to develop the semiconductor industry.

A Promising Start

Presenting the results of implementing the "Vietnam Semiconductor Industry Development Strategy to 2030 and Vision to 2050", the meeting assessed that in recent times, Vietnam is emerging as an attractive destination for investors in the semiconductor industry.

In the semiconductor industry value chain, Vietnam is currently participating in the following stages: design, testing, packaging of microchips, manufacturing of semiconductor-related equipment and materials, but does not have a chip manufacturing plant.

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.

Scene of the first meeting of the National Steering Committee on Semiconductor Industry Development. (Photo: Duong Giang/VNA)

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. Vietnam is 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... are shifting their supply chains to Vietnam to develop research centers, expand investment, business and production in Vietnam.

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 sector, 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 from the Netherlands, France, Germany, Belgium... to connect businesses, universities, research institutes, as well as provide scholarship programs for Vietnamese students and lecturers to study and work in the semiconductor field in Europe.

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.

Delegates raised a number of difficulties and challenges in implementing the "Vietnam Semiconductor Industry Development Strategy to 2030 and Vision to 2050" such as this is a new field, ministries, branches, localities, research institutes, universities and enterprises are currently in the research and implementation stage; proposing investment projects for national laboratories and grassroots laboratories takes a lot of time.

Delegates said that in order to further promote the development of the semiconductor industry, it is necessary to have specific incentive mechanisms and investment capital for this industry; focus on training human resources; develop synchronous and modern infrastructure, especially technology infrastructure, electricity, water, transport and logistics infrastructure; develop the semiconductor and electronics industry ecosystem; promote more strongly international cooperation in the semiconductor field with major partners; continue to attract talents, especially Vietnamese talents around the world to contribute to the development of the domestic semiconductor industry.

Concluding the meeting, analyzing the context, situation and requirements for developing the semiconductor industry in the world and Vietnam; the position, potential, advantages and conditions of Vietnam in developing the semiconductor industry; the policies, the things that Vietnam has been doing to develop the semiconductor industry, Prime Minister Pham Minh Chinh said that along with the Resolutions, strategies, programs, projects, mechanisms and policies on science and technology development, innovation and digital transformation, in the coming time, Vietnam will continue to make breakthroughs in policy mechanisms such as: establishing an Investment Support Fund; proposing mechanisms and policies in the process of drafting legal documents such as the Investment Law, the Corporate Income Tax Law, the Science and Technology Development Fund of Enterprises, preferential policies on personal income tax, fees, charges... to encourage the development of the semiconductor industry.

Pointing out some difficulties and limitations such as large capital needs, incentive mechanisms must be breakthroughs, infrastructure must be synchronous and modern, technology must be advanced, high-quality human resources...; emphasizing that "The Party has directed, the Government has agreed, the National Assembly has agreed, the people support, the Fatherland expects, then only discuss and do, not discuss backtracking," the Prime Minister requested ministries, branches, localities, units, educational institutions, and enterprises to proactively develop plans to implement the "Human Resource Development Program for the Semiconductor Industry to 2030, with a vision to 2050" and "Semiconductor Industry Development Strategy to 2030".

The Prime Minister speaks at the first meeting of the National Steering Committee on Semiconductor Industry Development. (Photo: Duong Giang/VNA)

Pointing out that “ideology must be clear, determination must be high, effort must be great, whatever is done must be done”; assigning “clearly to people, clear to work, clear to time, clear to products, clear to results,” Prime Minister Pham Minh Chinh noted that the implementation process must check, urge, replicate good and effective models, at the same time have measures to deal with weaknesses and limitations; promote the responsibility of leaders; strengthen decentralization, delegation of authority, improve implementation capacity for subordinates, coupled with inspection and supervision; promote public-private partnership, domestic and international cooperation, promote the strength of the State, people, and enterprises to develop the semiconductor industry.

The Head of Government requested to raise awareness of the role, position, potential, strengths and requirements for developing the semiconductor industry; perfect institutions, policy mechanisms in an open and preferential direction to attract all resources for the development of the semiconductor industry; develop infrastructure, especially digital infrastructure, information technology infrastructure, innovation infrastructure, transportation and logistics infrastructure; have policies to train and attract high-quality human resources in the semiconductor industry; manage in a smart direction; continue to promote administrative procedure reform, creating favorable conditions for development.

The Prime Minister also directed the early establishment of an Investment Support Fund; actively transferring technology to develop the semiconductor industry, based on Vietnam's unique potential, outstanding opportunities, and competitive advantages; developing design, testing, and packaging centers; participating in global value chains of large technology corporations; strengthening communication, especially guiding and encouraging people to participate in developing the semiconductor industry.

“The principle is harmonizing benefits, sharing risks; listening and understanding together; sharing vision and action together; working together, enjoying together, winning together and developing together,” the Prime Minister emphasized.

Determination must be demonstrated by concrete actions.

Prime Minister Pham Minh Chinh assigned the Ministry of Planning and Investment to continue focusing on promoting the implementation of tasks and solutions in the Program on Human Resources Development for the Semiconductor Industry to 2030, with a vision to 2050; promptly complete and submit to the Government the Decree on the Investment Support Fund, in order to encourage and attract investors around the world and support domestic enterprises.

Minister of Information and Communications Nguyen Manh Hung, Deputy Head of the National Steering Committee for Semiconductor Industry Development, speaks. (Photo: Duong Giang/VNA)

The Ministry of Information and Communications continues to focus on and promote the implementation of tasks and solutions of the Vietnam Semiconductor Industry Development Strategy to 2030 and vision to 2050, especially specific task groups: developing specialized chips; developing the electronics industry.

The Head of Government assigned the Ministry of Foreign Affairs to develop a "Project to promote international cooperation to mobilize resources for the development of Vietnam's semiconductor and electronics industry"; to research, develop and submit to competent authorities to sign international cooperation agreements on semiconductors with a number of leading countries and economies in semiconductors; to strengthen bilateral and multilateral cooperation on semiconductors.

Along with that, the Ministry of Foreign Affairs continues to take advantage of the network of Vietnamese representative agencies abroad to promote international cooperation in the semiconductor and electronics industries, identify priority areas for cooperation with each partner; complete the database of Vietnamese experts and intellectuals abroad and educational training institutions and universities abroad, and have a plan to approach, promote and connect effective cooperation with Vietnam.

The Ministry of Industry and Trade organizes the implementation of the National Power Development Plan for the 2021-2030 period, with a vision to 2050 (Power Plan VIII) and updates and supplements the Power Plan VIII Implementation Plan in the context of implementing the policy of restoring and researching the development of nuclear power after the competent authority permits; developing offshore wind power after the revised Electricity Law is passed by the National Assembly; and developing solar power after the competent authority directs the handling of the planning supplement, ensuring power supply security, meeting the development needs of the semiconductor industry.

The Ministry of Industry and Trade shall preside over and coordinate with the Ministry of Foreign Affairs to mobilize relevant US agencies to promptly remove Vietnam from the D1-D3 lists of high-tech export restrictions, thereby creating more favorable conditions for Vietnam to access advanced US technologies and promote cooperation between businesses of the two countries in high-tech fields, including the semiconductor industry.

Minister of Education and Training Nguyen Kim Son speaks. (Photo: Duong Giang/VNA)

Assigning the Ministry of Education and Training to continue to closely coordinate with the Ministry of Planning and Investment to implement the Program "Developing human resources for the semiconductor industry to 2030, with a vision to 2050," including researching, proposing and organizing the implementation of a linkage model between the state, schools and enterprises in training human resources for the semiconductor industry to ensure efficiency and quality, the Prime Minister requested to urgently submit the Project "Training human resources to serve high-tech development in the period 2025-2035 and vision to 2045" to prepare STEM human resources with high professional and technical qualifications to meet the needs of expanding investment in developing high-tech fields, including the semiconductor field, especially a talented workforce capable of participating deeply in the research and development stage in a number of key technology fields.

The Prime Minister directed the Ministry of Finance to preside over and closely coordinate with the Ministry of Planning and Investment and relevant agencies to research and propose mechanisms and preferential policies on tax, finance, management and use of public assets to serve the training, research and development of the semiconductor industry.

The Ministry of Science and Technology promotes research and development, enhancing Vietnam's science and technology capacity in the semiconductor industry, especially developing core technologies and specialized chip products.

Minister of Science and Technology Huynh Thanh Dat speaks. (Photo: Duong Giang/VNA)

Ministries, branches and localities continue to focus on and promote the implementation of tasks and solutions to develop the semiconductor industry according to the policies and orientations for developing the semiconductor industry in the Strategy for Developing the Vietnam Semiconductor Industry to 2030 and Vision to 2050 and the Program for Developing Human Resources for the Semiconductor Industry to 2030 and Vision to 2030.

Along with that, promote cooperation with countries and economies that possess semiconductor manufacturing capacity, participate in the supply chain of semiconductor products, materials and components; attract leading enterprises in the world, especially enterprises that play a decisive role in the semiconductor industrial ecosystem to shift the supply chain to Vietnam, set up offices, build R&D centers, semiconductor laboratories in Vietnam; work closely with large semiconductor enterprises such as: Intel, Samsung, Amkor, Hana Micron.

Ministries, branches, localities and units shall further strengthen research and consultation work to perfect mechanisms and policies to promote the development of the semiconductor industry, support domestic enterprises to participate in semiconductor development; guide and direct the quick handling of supporting investors to remove obstacles and difficulties in policies and administrative procedures related to investment and production and business activities such as environmental impact assessment reports, granting of fire prevention and fighting licenses, work permits, etc. to create favorable conditions for enterprises to invest in the semiconductor sector.

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, clean water, wastewater treatment systems, etc. to develop the semiconductor industry; promote neighboring industrial parks and clusters to create industry linkage clusters for the semiconductor industry chain.

Among them, Hanoi City strengthens traffic connections from the center of Hanoi to Hoa Lac High-Tech Park; Ho Chi Minh City builds a traffic system connecting Long Thanh and Tan Son Nhat airports.

Emphasizing that developing the semiconductor industry is a necessity, an inevitable requirement, a strategic breakthrough and also our key task in the coming time; it is something that needs to be done, must be done and is determined to be done, the Prime Minister said that it requires the participation of the entire political system, the support and participation of people, businesses, investors, and the support of international friends; determination must be demonstrated by specific, methodical, scientific, drastic, focused, and key actions, completing each task; contributing to the implementation of the socio-economic development goals based on science, technology, innovation, and digital transformation, in which the semiconductor industry is one of the key priority areas for development./.


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