Potential market for semiconductor sector
The semiconductor industry is gaining traction amid global changes. The Covid-19 pandemic has increased the demand for semiconductors due to the increased dependence on electronic devices during and after social distancing.
Benefiting from global changes, Vietnam’s semiconductor industry is facing many opportunities. Intel, one of the biggest names in the industry, has expanded the second phase of its chip testing plant in Ho Chi Minh City with a total investment of up to 4 billion USD. At the same time, Samsung has also invested in the largest product development center in Southeast Asia in Hanoi.
Some semiconductor chip companies from the Netherlands have also started investing in Vietnam. For example, BE Semiconductor Industries NV from the Netherlands has received an investment certificate in the Ho Chi Minh City High-Tech Park, with a capital of more than VND115 billion (equivalent to USD4.9 million) in the first phase, to invest in renting factories and production. This project is expected to come into operation in the first quarter of 2025.
Semiconductor industry is a potential field for industrial real estate in Vietnam.
According to Mr. Thomas Rooney, Senior Manager of Savills Industrial Leasing Department, there are many reasons that make Vietnam an attractive destination for semiconductor investors, thereby bringing the advantages of industrial real estate to this market.
In terms of geographical location, Vietnam has a strategic position in Southeast Asia, easy access to major markets in the region, and favorable natural conditions with large reserves of rare earths - important raw materials in the production of semiconductor chips.
Politically, Vietnam has a stable political system, creating a favorable environment for foreign investors. At the same time, the Vietnamese government is also actively promoting the semiconductor industry with attractive investment incentives and support policies.
Industrial real estate “benefits” from the development of the semiconductor industry
Regarding the demand for investment in semiconductor production in Vietnam from foreign enterprises, Mr. Thomas Rooney commented: "The demand for investment in semiconductor production and assembly has led to an increase in the search for factories and industrial parks that meet the infrastructure and service requirements of the semiconductor industry. Some basic requirements from enterprises include: stable power source, high-speed internet and effective water treatment system, thereby posing requirements for upgrading the quality and factory system for investors in Vietnam".
The Northern economic region is expected to continue to be a hot spot for industrial real estate in the face of the current strong wave of semiconductor investment. While industrial real estate tenants in the Southern provinces are in the rubber, plastic, food and beverage processing industries, in the North, investment capital is mainly from businesses operating in high value-added industries such as computers, electronics or electrical products. Therefore, when the wave of semiconductor investment develops, it will create more momentum for development of industrial real estate in the North.
Northern industrial zones are becoming the focus and attraction for many semiconductor businesses.
According to Savills experts, to attract capital into the semiconductor industry and industrial real estate, localities and businesses need to perfect their policy mechanisms, infrastructure and human resources to best meet the strict demands of this specific industry.
Notably, the current infrastructure in Vietnam is not really complete, especially the power transmission lines during peak months and the power supply system in Vietnam has not really met the demand. The semiconductor industry requires a huge amount of electricity. Therefore, to meet the huge energy demand from advanced industries such as semiconductors, Vietnam needs to accelerate large-scale energy infrastructure projects.
Regarding human resources, although Vietnam has a large working-age population with 52.4 million workers aged 15 and over in the first quarter of 2024. However, according to Mr. Thomas, Vietnam is currently lacking highly qualified engineers to serve the development of the semiconductor industry.
In fact, the lack of quality human resources will limit the flow of investment capital from large companies. Therefore, solving the problem of human resources for this field will further enhance Vietnam's position in investment destinations, attracting large technology corporations to invest in research, development and production in Vietnam.
The Ministry of Planning and Investment (MPI) pays special attention to developing labor capacity to increase Vietnam's competitiveness in the semiconductor manufacturing sector. Semiconductor manufacturing has two main areas: Research and Development (R&D) and Manufacturing. Both processes have high labor requirements. The Government is assigning the MPI to preside over and coordinate with the Ministry of Information and Communications, the Ministry of Education and Training and relevant agencies to research and develop a Project on human resource development for the semiconductor industry with the goal of training and developing 50,000 human resources for the industry by 2030.
"The government and businesses need to work closely to promote existing potentials, improve the investment environment, enhance the quality of infrastructure and train human resources, thereby creating favorable conditions for the sustainable development of the semiconductor industry and industrial real estate in Vietnam. With these efforts, Vietnam can become one of the important semiconductor manufacturing centers in the world, contributing positively to economic development and enhancing Vietnam's position in the global supply chain," said Mr. Thomas.
Source: https://www.congluan.vn/tiem-nang-va-thach-thuc-cua-bat-dong-san-cong-nghiep-voi-su-phat-trien-cua-nganh-ban-dan-post297194.html
Comment (0)