Reasons why foreign investors put their full trust in Vietnam's semiconductor industry

With the advantage of geographical location and outstanding semiconductor industry development policy, many investors are placing their full trust in Vietnam's semiconductor industry.

Attracting 170 FDI projects in the semiconductor sector

According to information given by Deputy Minister of Finance Nguyen Duc Tam at the opening ceremony of the Vietnam Semiconductor Industry Exhibition 2025 (SEMIEXPO Vietnam 2025) held in Hanoi on the morning of November 7, Vietnam currently has over 170 foreign direct investment (FDI) projects in the semiconductor industry, with a total registered capital of nearly 11.6 billion USD.

Vietnam's semiconductor supply chain mainly focuses on two main stages, including semiconductor chip design; semiconductor chip packaging and testing.

Deputy Prime Minister Nguyen Chi Dung speaks at the opening ceremony of the exhibition. Photo: Minh Tri.

In Vietnam, there are 58 design enterprises, including 13 domestic enterprises and 45 foreign enterprises. The Government is developing an "Investment project to build a small-scale, high-tech semiconductor chip manufacturing factory to serve the needs of research, design, and production of semiconductor chips", with a plan to put the factory into operation by 2030, with 8 packaging and testing projects, including 1 project of a Vietnamese enterprise and 7 projects of foreign enterprises such as: Intel, Amkor, Hanna Micron...

“Vietnam has begun to have the presence of a number of enterprises producing and supplying raw materials and equipment for the semiconductor industry such as Coherent, VDL...” - Deputy Minister of Finance Nguyen Duc Tam affirmed.

Deputy Prime Minister Nguyen Chi Dung visits booths at the exhibition. Photo: Minh Tri.

Meanwhile, according to Deputy Prime Minister Nguyen Chi Dung, Vietnam is increasingly attractive to the world's leading technology corporations such as Samsung, NVIDIA, Foxconn... thanks to its stable political system, solid macroeconomic environment, favorable geopolitical position; and possessing an abundant labor force with competitive costs, especially in the fields of engineering and technology.

“More importantly, Vietnam is promoting economic restructuring associated with growth model innovation, continuing to perfect institutions, improving the investment and business environment, removing bottlenecks in infrastructure and human resources…” - Deputy Prime Minister Nguyen Chi Dung informed.

Ms. Linda Tan - President of the Semiconductor Association of Southeast Asia (SEMI SEA) highly appreciated the opportunity to develop the semiconductor industry in Vietnam thanks to specific policies on infrastructure development, investment in talent development, and laying the foundation for a dynamic ecosystem.

With those efforts, Ms. Linda Tan believes, "Vietnam can absolutely participate more deeply in the value chain of the global semiconductor industry."

Continue to improve institutions for the semiconductor industry

According to Deputy Minister of Finance Nguyen Duc Tam, Vietnam has four potential factors to develop the semiconductor industry, including: First , the shift in the global semiconductor supply chain.

With a strategic geographical location in the heart of Southeast Asia, about 3-4 hours flight from leading semiconductor manufacturing centers such as Taiwan and South Korea, Vietnam has many favorable conditions to welcome the shift of the semiconductor industry supply chain; deep international integration through Free Trade Agreements (FTAs) with more than 17 signed FTAs.

Second , the potential of the electronics industry in Vietnam is the foundation for the development of the semiconductor industry. With hardware and electronics exports reaching over 132.3 billion USD in 2024, up 16.8% compared to 2023, Vietnam has demonstrated its ability to produce and apply advanced technology in the field of electronics manufacturing. This is the premise for expanding the ability to integrate the downstream chain for the semiconductor industry.

Deputy Minister of Finance Nguyen Duc Tam speaks at the opening ceremony of the exhibition. Photo: Minh Tri.

Third , the preferential investment policy mechanism for the semiconductor industry is favorable. According to Deputy Minister Nguyen Duc Tam, the Party and State of Vietnam have issued many regulations and policies to support the development of the semiconductor industry, such as Resolution No. 57-NQ/TW dated December 22, 2024 of the Politburo on breakthroughs in science, technology, innovation and national digital transformation; Resolution No. 193/2025/QH15 dated February 19, 2025 on piloting special policies to create breakthroughs in science, technology, innovation and national digital transformation; Decree No. 182/2024/ND-CP dated December 31, 2024 regulating the establishment, management and use of the Investment Support Fund, attracting strategic investment in high-tech fields, including the semiconductor industry.

Decision No. 1018/QD-TTg dated September 21, 2024 approving the Strategy for developing Vietnam's semiconductor industry to 2030, with a vision to 2050; Decision No. 1017/QD-TTg of the Prime Minister approving the Program "Developing human resources for the semiconductor industry to 2030, with a vision to 2050".

Along with that, the Law on Digital Technology Industry, which was recently passed by the National Assembly at the June 2025 session, has completed the legal corridor to promote and develop the semiconductor industry.

Fourth , Vietnam has the advantage of abundant human resources and a young, dynamic population - creating a solid foundation for the development of the semiconductor industry. With a population of about 100 million people, of which more than 60% are young, it has developed into a dynamic center for the electronics and information technology industry.

"With more than 1.9 million employees working in the field of information technology and digital technology, including more than 500,000 engineers, Vietnam has formed a strong semiconductor chip design community with about 60 enterprises and 7,000 design engineers" - Deputy Minister of Finance informed.

Deputy Prime Minister Nguyen Chi Dung and delegates attending the event. Photo: Minh Tri.

To continue developing the semiconductor industry in the coming period, Deputy Prime Minister Nguyen Chi Dung said that Vietnam is focusing on perfecting institutions and investment policies; developing high-quality human resources; attracting strategic investment; developing infrastructure; promoting international cooperation...

Continue to improve institutions and incentive policies towards international practices, ensuring competitiveness in attracting investment, especially in the fields of: Energy, tax, land, technology transfer, intellectual property and sandbox mechanism for high-tech enterprises...

"Vietnam not only creates conditions, but also proactively opens the way for investors to develop together" - Deputy Prime Minister Nguyen Chi Dung affirmed.

The strategy for developing Vietnam's semiconductor industry to 2030, with a vision to 2050, identifies four core ideas, with special attention paid to prioritizing investment in developing high-quality human resources, making Vietnam a global center for semiconductor human resources, capable of participating deeply in the stages of the semiconductor industry, as the first step for Vietnam to develop the semiconductor industry.

Source: https://congthuong.vn/ly-do-nha-dau-tu-nuoc-ngoai-dat-tron-niem-tin-vao-nganh-ban-dan-viet-nam-429432.html