Vietnam’s semiconductor industry is expected to thrive in the coming time on the back of its favourable environment and various incentives, according to insiders.

The sector has shown enormous growth potential with the participation of many leading corporations in the world and the engagement of local firms.

Deputy Director of the Vietnam National Innovation Centre (NIC) under the Ministry of Planning and Investment Vo Xuan Hoai said tech giants like Samsung, Intel, Renesas, Qorvo, and Marvell have set up their research and development centres as well as production plants in Vietnam. Particularly, chipmaker Intel opened an assembly, packaging, and testing facility, its largest in the world, in Ho Chi Minh City while Amkor Technology put into operation its 1.6 billion USD semiconductor plant in Bac Ninh province in 2023.

He attributed Vietnam’s attraction to global chipmakers to the Government’s resolve to develop the semiconductor sector by forming a favourable environment and establishing the NIC and high-tech parks in Hanoi, Da Nang, and Ho Chi Minh City.

Besides ensuring sound transport and power infrastructure, Vietnam has issued a multitude of policies to support the industry, including a National Assembly’s resolution on tax exemption and reduction for experts, scientists, and talents in priority fields.

Furthermore, many domestic firms have engaged in the semiconductor and AI sectors, with FPT Corporation being the pioneer. The enterprise has worked closely with the world’s leading AI firms like Landing AI, Mila, and Nvidia and will invest 200 million USD in an AI factory, which is designed to bolster the economy as well as give impetus for the nation to develop the AI sector. The firm has also focused on chip design and human resources training for the industry.

Under the programme to develop semiconductor human resources and the national semiconductor development strategy recently signed by the Prime Minister, Vietnam eyes to train 50,000 engineers for the sector by 2030.

Hoai said that Vietnam boasts an abundant supply of skilled workers and many reputable research and training institutions, adding the Hanoi University of Science and Technology, the Vietnam National University - Ho Chi Minh City, and the Da Nang University have trained and developed a large network of domestic and foreign experts.

Meanwhile, Vice Chairman of the Hanoi Supporting Industry Association Nguyen Van laid a stress on the significance of the human resources quality to the sector’s development, highlighting the association has worked to promote cooperation in human resources training between education establishments and enterprises.

According to Do Thi Thuy Huong, a representative from the Vietnam Electronic Industries Association, semiconductor enterprises have a lot of development opportunities, especially following the working sessions between General Secretary of the Communist Party of Vietnam Central Committee and State President To Lam and leading US firms as part of the top leader's trip to the US for the UN Summit of the Future and the High-Level General Debate of the United Nations General Assembly’s 79th session.

At the events, Lam underscored that although science technology and innovation are an important pillar in the Vietnam – US relations, cooperation and investment activities between the two sides in the areas have not been on par with the bilateral ties and hold huge potential for further development in the coming time.

He expressed his hope that the US investors will study and expand investment in Vietnam in the domains of chip industry, AI, Internet of Things, and new energy, among others, adding the Vietnamese Party, State, and people commit to creating all favourable conditions in accordance with legal regulations for the investors so that they could run effective and sustainable business in Vietnam.

Such giants as Google, Supermicro, Meta, and Apple as well as investment funds affirmed that Vietnam is a potential market with policies to encourage the development of high-tech sectors, pledged to expand investment in the nation.

Experts held that in order to welcome the investment wave for the semiconductor sector and engage in the production and supply chains, ministries and enterprises need to make meticulous preparations regarding policies, technologies, and human resources./.