Building Vietnam's semiconductor industry according to four core ideas

“Vietnam identifies semiconductors as a strategic technology, playing a key role in enhancing competitiveness, promoting economic growth, and affirming national position.”

Deputy Minister of Science and Technology (KH&CN) Bui Hoang Phuong said the above at the SemiExpo Vietnam 2025 Exhibition on November 7 in Hanoi.

Deputy Minister of Science and Technology Bui Hoang Phuong speaks at SemiExpo Vietnam 2025 Exhibition.

According to the Deputy Minister, Vietnam participates in this industry with a number of potentials and advantages, such as its strategic geopolitical position, located in the center of Southeast Asia, near leading chip manufacturing centers, helping Vietnam to easily welcome the flow of global supply chain shifts. High economic openness and a wide network of free trade agreements also create conditions for technology corporations to easily invest and cooperate.

In addition, Vietnam has a large-scale electronics manufacturing industry with hardware exports reaching more than 132 billion USD in 2024, along with a young, abundant workforce, with 1.9 million people working in the technology sector and more than 7,000 chip design engineers. But the biggest advantage, according to the Deputy Minister, "is the strong and consistent political determination from the top leadership in promoting the development of this field".

To take advantage of the above advantages, the Government has issued the Strategy for developing Vietnam's semiconductor industry to 2030, with a vision to 2050, summarized by the formula C = SET +1, with C - semiconductor chip; S - specialized (specialized, specialized chip); E - electronics (electronics, electronics industry); T - talent (talent, human resources); + 1 means that Vietnam is a safe new destination for the global supply chain of the semiconductor industry.

The formula consists of four core ideas. Deputy Minister Bui Hoang Phuong explained that the first idea is to focus resources and special incentive mechanisms on research, design, production and development of specialized chips, promoting sustainable development of the electronics and IoT industries.

The second idea is to link the development of the semiconductor industry with the electronics industry. "Developing the semiconductor industry must be part of the overall development of Vietnam's electronics industry," he said.

Third, Vietnam will prioritize investment in developing high-quality human resources, with the goal of becoming a global semiconductor human resources center, capable of participating deeply in the semiconductor industry.

Ultimately, Vietnam will leverage its geopolitical position and strategic partnerships to become a new destination in the global semiconductor supply chain diversification strategy.

Delegates attending the Exhibition.

Deputy Minister Bui Hoang Phuong said that relevant ministries and sectors have issued many policy mechanisms to develop high-quality human resources in the semiconductor field such as incentives for personal and corporate income tax, import-export incentives, establishment of research funds, investment support funds, and formation of shared infrastructure to promote Vietnam's semiconductor industry. He expects the Semiconductor Industry International (SEMI) to "play a bridging role, becoming a driving force for the development of the semiconductor industry".

As of November, Vietnam had more than 170 foreign investment projects in the semiconductor sector with a total capital of nearly 11.6 billion USD, focusing on two main stages: chip design and packaging and testing. About 60 design enterprises, 8 packaging - testing projects and more than 20 enterprises manufacturing and supplying materials and equipment were present in Vietnam, including names such as Intel, Amkor, Hana Micron, Coherent, VDL.

The Deputy Minister believes that, with the support of Semi, the business community, research institutes and universities, Vietnam will strongly promote the semiconductor industry in general and the fields of science and technology, innovation and digital transformation in general.

Center for Science and Technology Communication

Source: https://mst.gov.vn/xay-dung-nen-cong-nghiep-ban-dan-viet-nam-theo-bon-tu-tuong-cot-loi-197251107161710423.htm