Potential for Vietnam-US cooperation in the semiconductor industry

Vietnam has a great opportunity to increase its presence in the global semiconductor supply chain. To do this, Vietnam needs to quickly build an investment environment that promotes the semiconductor industry and develops human resources and infrastructure.

Mr. Ramin Toloui shared about Vietnam's presence opportunities in the US semiconductor manufacturing supply chain in an interview with Tuoi Tre newspaper in Ho Chi Minh City - Photo: THE KIET

Those were the shares of Mr. Ramin Toloui, US Assistant Secretary of State for Economic Affairs, in a conversation with Tuoi Tre when he was on a working trip to Vietnam in late April. Playing the role of promoting the construction of a supply chain for the US semiconductor industry, during his trip to Asia, Mr. Ramin Toloui visited Japan, South Korea, Singapore..., meeting with partners of the International Technology Innovation and Security Foundation (ITSI), an initiative of the US State Department. In Asia, three countries, Vietnam, Indonesia and the Philippines, were chosen as partners of ITSI.

Human resources in Vietnam

"I first came to Vietnam in 1997, and after 27 years, things have changed a lot here. From Nike investing in Vietnam in 1995, and then Intel in 2006, these investments have boosted the country's economic development and improved the lives of the Vietnamese people. The important thing is that I feel the positive energy of the people here is still the same. It is the Vietnamese people's desire to learn and work hard, constantly investing in themselves through education and work, striving to create a better life for themselves," said Mr. Ramin Toloui. During his trip to Vietnam, Mr. Ramin Toloui visited the Intel Vietnam factory, the world's largest manufacturing facility for Intel's assembly, testing and packaging of semiconductor chips. He also visited Ho Chi Minh City National University and Fulbright University, two educational institutions that promise to provide human resources for the semiconductor industry . And the discussion with the representative of the Ministry of Planning and Investment to discuss the necessary policies to promote cooperation in the semiconductor industry. He affirmed that human resources are one of the important factors that the US decided to choose Vietnam as a strategic partner in the process of diversifying the semiconductor manufacturing supply chain. The three important pillars for Vietnam to participate in the semiconductor chip manufacturing supply chain are the government, the academy and the private sector. His trip also focused on typical representatives of those three pillars. According to Mr. Ramin Toloui, the US Department of State is making efforts to promote assembly, test and packaging (ATP) capacity in ITSI partner countries in the Americas and the Indo-Pacific, to strengthen the flexible supply chain for US semiconductor manufacturers. This initiative will help US ITSI partners create an investment environment, support the semiconductor industry and enhance the capacity of the workforce, creating a new source of talent.

Win-win

Following President Joe Biden's visit in September 2023 and the two countries upgrading their relationship to a Comprehensive Strategic Partnership, there have been many memorandums of understanding outlining a roadmap for cooperation to promote the semiconductor industry in Vietnam. According to Mr. Ramin, in the first step to concretize this roadmap, the US side will reassess the semiconductor ecosystem in Vietnam, clearly understanding the development potential. After that, the US agency will also identify the areas that need to be addressed to realize that potential. Accordingly, the US Government has cooperated with the Organization for Economic Cooperation and Development (OECD) to conduct this assessment and provide a roadmap for the use of the ITST fund. "This is something I discussed with Deputy Minister of Planning and Investment Tran Duy Dong. When we met him, we discussed the importance of workforce development, the need to build infrastructure including clean energy and legal infrastructure, as well as policies to encourage foreign investment in Vietnam. The issue of human resources for the semiconductor industry is a common topic in all countries that want to develop this industry, not just in Vietnam," he told Tuoi Tre. Mr. Ramin emphasized that one of the sources of capital from the ITST fund is to develop the workforce in Vietnam. The semiconductor industry is playing an increasingly important role in economic development as global demand for semiconductors increases, determining the cost and increasing the functionality of all electronic systems, information technology, telecommunications, automation, self-driving cars, etc. Analyzing these potentials, Mr. Ramin said that opportunities are available to all US partners, including Vietnam. Therefore, to attract foreign investment and become a destination for US capital flows, Vietnam needs to continue to improve its investment environment. "These factors are very important when foreign businesses are making decisions about where they want to develop their investments and expand their production capacity," said Mr. Ramin Toloui.

About the ITSI initiative

ITSI was established under the CHIPS Act of 2022, a law that allocates new funding to increase semiconductor manufacturing capacity in the United States. The ITSI Fund initiative has been funded by the U.S. Department of State with $500 million ($100 million per year for five years, starting in fiscal year 2023) to implement the initiative. The program selects six countries in the West Asia and Asia regions to ensure diversity in the global semiconductor supply chain, focusing on assembly, testing, and packaging.

Tuoitre.vn

Source: https://tuoitre.vn/tiem-nang-hop-tac-viet-my-trong-nganh-ban-dan-2024042723392542.htm