Vietnam to launch investment incentives for semiconductor industry, photo freepik.com

Prime Minister Pham Minh Chinh signed a decision on September 21, which lays out Vietnam’s semiconductor industry development strategy through 2030, with a vision to 2050.

The strategy aims to position Vietnam as a key player in the global semiconductor supply chain and establish the country as a new and safe destination for semiconductor production.

By 2040, Vietnam’s semiconductor workforce is expected to exceed 100,000 engineers and graduates. In the initial phase (2024-2030), the strategy will focus on leveraging the country’s geopolitical advantages and skilled labour to draw in high quality overseas investment.

"Vietnam is set to become a global hub for semiconductor talent," the document highlights. The country aims to establish at least 100 chip design companies, a small-scale chip fabrication plant, and 10 packaging and testing facilities by 2030.

Semiconductor industry revenues are projected to surpass $25 billion annually by the end of the first phase, with value-added contributions of 10-15 per cent. The electronics sector is expected to generate $225 billion in annual revenue, with similar value-added percentages.

In the second phase (2030-2040), Vietnam is aiming to become a global centre for semiconductor and electronics manufacturing, integrating self-reliance with foreign investment, by establishing at least 200 chip design companies, two fabrication plants, and 15 packaging and testing facilities. The strategy also targets self-sufficiency in semiconductor design and production technologies.

By 2040, the semiconductor industry is expected to generate more than $50 billion in annual revenue, while electronics industry revenues could exceed $485 billion, with value-added contributions between 15-20 per cent.

The final phase (2040-2050) envisions Vietnam as a global leader in the semiconductor and electronics sectors. The country plans to establish at least 300 chip design companies, three fabrication plants, and 20 packaging and testing facilities. Semiconductor industry revenues are expected to exceed $100 billion annually, while electronics revenues could surpass $1 trillion. By this time, Vietnam aims to have a fully autonomous semiconductor ecosystem, leading in key segments of the global supply chain.

To achieve these objectives, the strategy outlines several key initiatives, including the development of specialised chips and core technologies, investment in research and innovation, and the creation of a fully integrated semiconductor ecosystem.

The government also plans to establish a fund to support semiconductor research and development, encouraging the creation of domestic chip production centres to reduce costs and foster innovation. Moreover, efforts will focus on developing next-generation electronic devices, integrating AI and the Internet of Things.

Human capital development is a cornerstone of the strategy, with plans to attract top global talent through targeted policies and financial incentives. By 2030, Vietnam aims to train a workforce of 50,000 engineers and graduates in the semiconductor industry, ensuring a sufficient talent pool to support the sector's rapid growth.

The government will also roll out maximum incentives for high-tech foreign-invested projects in the semiconductor and electronics sectors, supported by central and local budgets. The strategy includes the establishment of a National Steering Committee on Semiconductor Industry Development, chaired by the PM, to oversee and drive the execution of the plan.