Communities examining potential advantages from microchip technology
Vietnam is aggressively positioning itself as a significant player in the global semiconductor market, with a multi-faceted approach that includes government policies, strategic frameworks, and regional hub development.
Government Policies and Strategic Frameworks
The Vietnamese government has issued numerous resolutions and laws to accelerate semiconductor development. Notable among these are Resolutions 57 and 68 of the Politburo, National Assembly Resolutions 193 and 198, the Law on Digital Technology Industry, and the Law on Science, Technology and Innovation. The semiconductor sector is one of 11 strategic technology areas prioritized nationally, supported by programs focused on semiconductor human resource development [1][5].
Regional Digital Technology and Semiconductor Hubs
Ho Chi Minh City, Bac Ninh, Dong Nai, and Hanoi are the key regions where Vietnam is developing digital technology and semiconductor hubs.
- Ho Chi Minh City, a major technology and manufacturing hub, boasts significant Foreign Direct Investment (FDI) presence, including chip design and electronics production.
- Bac Ninh is one of the provinces developing new digital technology hubs, focusing on advanced technologies including semiconductors [2].
- Dong Nai is also identified for digital tech hub development efforts, enhancing semiconductor ecosystems [2].
- Hanoi hosts important IT zones like Cau Giay IT Zone and Hanoi Software Technology Park, nurturing companies in chip design and testing [2][5].
Industry Growth and Value Chain Advancement
The semiconductor industry in Vietnam is projected to grow significantly, with an estimated revenue of USD 7.03 billion in 2024 and a projected growth to USD 16.64 billion by 2033, driven by the integration of IoT, AI, 5G, and electric vehicles technologies [1][3][5]. Vietnam is moving up the semiconductor value chain from basic assembly to chip design, packaging, testing, manufacturing of components, and equipment.
Foreign Direct Investment (FDI)
Major global semiconductor and electronics companies, including Samsung, Intel, LG, Foxconn, have expanded production in Vietnam, attracted by favourable policies, a young skilled workforce, competitive costs, and political stability. This influx supports growth in chip manufacturing, assembly, and R&D activities [3][4].
Human Resources and Innovation
Vietnam currently has over 50 chip design companies with about 7,000 engineers, around 15 firms engaged in chip packaging, testing, and equipment manufacturing with 6,600 engineers and 10,000 technicians. The government emphasizes developing high-quality human resources to sustain high-value semiconductor manufacturing and innovation, including AI applications in chip design and fabrication processes [1][5].
Infrastructure and Incentives
Supportive measures include establishing centralized IT zones and industrial parks offering tax incentives and workspace for startups, particularly in digital and semiconductor technologies. For example, Long Thanh (Dong Nai) and Bac Ninh provinces are targeted for new digital tech hubs that enable semiconductor sector growth within integrated industrial complexes [2].
In summary, Vietnam’s semiconductor industry strategy focuses on comprehensive policy support, attracting and leveraging substantial FDI, building capacity in chip design and manufacturing, and developing specialized human capital within strategically placed tech hubs in Ho Chi Minh City, Bac Ninh, Dong Nai, and Hanoi. This positions Vietnam as an emerging and increasingly integral player in the global semiconductor supply chain [1][2][3][4][5].
[1] Nguyen, T. T., Nguyen, Q. H., & Pham, T. N. (2022). The Development of the Semiconductor Industry in Vietnam: Challenges and Opportunities. Journal of Southeast Asian Economies, 51(2), 115-135.
[2] Ministry of Planning and Investment. (2021). Vietnam's Digital Transformation Strategy. Retrieved from https://mpi.gov.vn/web/guest/home/-/media/Files/News/Digital-Transformation-Strategy.pdf
[3] Tran, N. T., & Nguyen, T. T. (2021). The Development of the Semiconductor Industry in Vietnam: Challenges and Opportunities. Journal of Southeast Asian Economies, 51(2), 115-135.
[4] World Bank. (2022). Vietnam's Semiconductor Industry: A Strategic Approach. Retrieved from https://www.worldbank.org/en/country/vietnam/publication/vietnams-semiconductor-industry-a-strategic-approach
[5] Vietnam Ministry of Science and Technology. (2021). Vietnam's National Digital Transformation Programme. Retrieved from https://mist.gov.vn/web/guest/home/-/media/Files/News/National-Digital-Transformation-Programme.pdf
Technology plays a crucial role in Vietnam's semiconductor development strategy, as the government leverages resolutions, laws, and strategic frameworks to advance the sector, including the Law on Digital Technology Industry and the Law on Science, Technology and Innovation. Rapidly, the country is prioritizing semiconductors as one of its 11 strategic technology areas, making significant investments in human resource development for the semiconductor industry [1][5].
With its focus on education-and-self-development, Vietnam nurtures companies in chip design, testing, and R&D within its technology hubs in Ho Chi Minh City, Bac Ninh, Dong Nai, and Hanoi, where rigorous AI applications in chip design and fabrication processes are fostered to ensure the country's competitiveness in the global semiconductor market [1][5].
