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.
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 attracting investment and supporting the development of the semiconductor ecosystem, the Minister of Information and Communications 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 developed specific plans to shift supply chains to Vietnam, develop research centers, and expand investment, business, and production in Vietnam.
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 No. 1 technology corporation, NVIDIA, the Prime Minister assigned the Ministry of Planning and Investment to coordinate with relevant agencies to establish two groups, including the Working Group for Cooperation Implementation and the Negotiation Group with NVIDIA.
These two groups have exchanged ideas and worked with NVIDIA Corporation to attract investment, concretize cooperation plans, and have achieved many breakthrough results, creating a great impact and elevating 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 a crucial "boost" that will help Vietnam achieve a technological leap forward in the coming period, with a significant ripple effect, attracting the attention of other high-tech investors worldwide, especially in the fields of AI and semiconductors, to invest in Vietnam; at the same time, it will attract and retain many talented individuals in the semiconductor and AI fields.
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, affirming that they highly value the Vietnamese market, and have informed about their operational status and plans to expand cooperation, investment, and business in Vietnam in the coming period," Mr. Dung said.
Many challenges still lie 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. Semiconductors are a special industry, requiring large investment capital, high requirements on human resources and technology.
Amidst fierce competition among economies to attract semiconductor investors, many large technology corporations have previously planned to enter Vietnam but have only gone as far as surveying and exploring options, awaiting specific incentives. Meanwhile, investment support mechanisms need time to be enacted and implemented.
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 the transportation of goods is not really fast and smooth.
Furthermore, businesses in the semiconductor industry are very concerned about the availability and stability of electricity, water, and wastewater treatment infrastructure. Some large corporations such as Samsung and Intel have requested a stable supply of renewable and sustainable energy at preferential prices. However, Vietnam's electricity system, especially clean energy, still has limitations and is prone to risks during factory operation.
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 stated that currently, proposing investment projects for national-level and institutional-level laboratories requires considerable time for research and implementation, as this is a new and unprecedented issue for some universities.
The Ministry of Planning and Investment has issued guidance and instructions to universities and governing bodies. To ensure the project proposal is completed on schedule in December 2024, governing bodies and universities need to urgently organize research and consult with semiconductor experts to finalize the proposal and submit it to the Ministry of Planning and Investment for compilation.
Seize the rare opportunity to stand on the shoulders of giants
To further develop the semiconductor industry in the coming period, the Ministry of Planning and Investment proposes that the Steering Committee strengthen international cooperation, actively approach and work with major semiconductor and artificial intelligence corporations and enterprises, and especially focus on attracting investment projects in advanced packaging, a field with 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 guide and direct the effective use of the Investment Support Fund.
Take the lead and coordinate closely 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 the two 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 funding 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 suggested.
The Minister of Planning and Investment believes that Vietnam can seize this "rare" opportunity to participate deeply in the semiconductor industry value chain, therefore requiring the participation and involvement of all ministries, sectors, localities, businesses, research institutes, universities, and experts both domestically and internationally.
"Vietnam cannot reach its goal alone. More than ever, at this crucial stage and opportunity, it needs rapid, strong, and comprehensive cooperation with leading countries, economies, and businesses in the semiconductor industry to stand on the shoulders of giants, leverage its human resources, and rise to become a central player in Asia and the world in semiconductor industry development, and potentially a future AI powerhouse," Mr. Dung stated.
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