Building a special mechanism to attract and transfer technology to develop the semiconductor industry

Great opportunity for Vietnam

At the end of January, US Under Secretary of State for Economic Growth, Environment and Energy Jose Fernandez visited and worked in Vietnam to continue to realize and specifically implement the agreements of the two countries' senior leaders during US President Joe Biden's visit to Vietnam in September 2023.

Speaking to the press, Mr. Fernandez emphasized that semiconductors are the focus of his visit. “My message to Vietnamese leaders is to seize the opportunity right now. There is competition in the world , if Vietnam wins it will be very beneficial,” Mr. Fernandez said. Deputy Minister Jose Fernandez also affirmed that the US will cooperate and support Vietnam in achieving its goals with the semiconductor industry, including the goal of training 50,000 engineers for this industry.

As someone who has lived, studied and worked in Russia for many years, Prof. Dr. Nguyen Quoc Sy - Director of VinIT Institute of Technology also believes that Vietnam has a great opportunity to become a country with a semiconductor industry. "The semiconductor industry is a super-profitable industry, using little land and natural resources but mainly using human resources. If participating in the world's semiconductor chain, Vietnam can "awaken" and effectively use this huge resource of the country," said Mr. Nguyen Quoc Sy. Strategically, this could be a key industry in Vietnam's development strategy, promoting the development of many other industries, thereby positively affecting the country's economic development.

Pointing out Vietnam's advantages in attracting large corporations in the world to participate in building semiconductor chip facilities, Mr. Nguyen Quoc Sy said that Vietnam has great advantages in political security and a stable development environment, a foreign policy of "making friends with all countries" and an open investment attraction policy. In particular, Vietnam's extremely important geopolitical position is a fundamental advantage for attracting investment in building high-tech industries, including the semiconductor industry.

According to Mr. Nguyen Quoc Sy, in reality, there are currently foreign-invested enterprises in Vietnam setting up microchip manufacturing facilities. However, the technology, machinery, equipment, and organizational and management models are brought by these enterprises, while we only participate in the final stages of the production process, which are testing and packaging. We also do not have core technology, foundational technology, with inventions and innovations as a foundation to be able to keep up with other countries in the world in this field.

Therefore, to build its own semiconductor industry, Vietnam must quickly learn technology, acquire scientific knowledge, and master technology to be able to develop with other countries. "We not only have to prepare a force of senior officials and experts, but also have to build research facilities, laboratories, and modern equipment; at the same time, we must deploy research on our own technologies to hope to go along with and participate in the world's semiconductor supply chain," Mr. Sy commented.

There should be special, favorable mechanisms for investors.

According to Mr. Nguyen Quoc Sy, it is necessary to distinguish between the governments of countries with strong semiconductor industries supporting Vietnam to develop the semiconductor industry and the large semiconductor corporations in the world investing in Vietnam. Vietnam can take advantage of this opportunity to call for investment and technology transfer from large units and corporations in the world. Political support is very important and is a solid, favorable foundation for corporations to consider investing in Vietnam. However, the final decision on whether to invest or not is up to the technology corporations. For them, the most important and top criterion is profit. Therefore, if Vietnam fully meets the criteria so that they can confidently implement semiconductor industry projects with long-term profits, they will invest in Vietnam and vice versa.

Analyzing, Professor, Dr. Nguyen Quoc Sy pointed out that we must be ready to invest in building infrastructure, fully meeting the conditions for supplying electricity, water, roads, seaports, airports... Besides, there needs to be a special, favorable mechanism, a streamlined, effective management system for investors, including semiconductor industry investors.

With human resources in science and technology for the semiconductor industry, the important thing is quality, not quantity. Only when all the above factors are fully met can we expect businesses and large semiconductor corporations in the world to cooperate and invest and build the semiconductor industry with Vietnam. “Eagles' food is different from that of sparrows. We must have a special approach, a special mechanism for investors in the semiconductor industry. The special approach here is not only special priority, but also something that others do not have. In the forest there are many trees, but eagles will choose tall, strong, large trees that can withstand storms to make their nests,” Mr. Nguyen Quoc Sy emphasized.

This Professor, Doctor of Science also believes that technology transfer and large investments from partners around the world are key factors that determine the success of building the semiconductor industry. Therefore, Vietnam must build a special mechanism to attract and transfer technology and intelligence in this field. At the same time, it must have a specialized R&D system, integrated with training and production, to create its own technological inventions, to be able to keep up with the world in the semiconductor product chain.

“We should not spread our investments, but focus on a number of key technologies, core technologies, and foundational technologies, with the need for long-term strategic tasks that have great significance, promoting the development of the semiconductor industry. Along with that, we need to identify the market and semiconductor products that Vietnam can participate in. The output products of the semiconductor industry must be regulated by the common mechanism of the market,” Mr. Nguyen Quoc Sy recommended on building policies and investment strategies in semiconductors.

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