Vietnam Accelerates Semiconductor Industry Development to Join Global Value Chain
Hanoi, The Gulf Observer: Vietnam is intensifying efforts to strengthen its role in the global semiconductor value chain, aiming to become a key player in the rapidly growing industry, according to the National Steering Committee for Semiconductor Industry Development.
At a recent conference, Deputy Minister of Finance Nguyễn Đức Tâm cited data from the US Semiconductor Industry Association showing the sector is expected to grow by around 20 per cent in 2024 and a further 12 per cent in 2025, reaching an estimated market value of US$700 billion. This growth is being driven by surging demand for artificial intelligence, data centres, electric vehicles, and 5G technology.
Recognising the sector’s strategic significance, the Vietnamese Government has enacted multiple policies, including the Digital Technology Industry Law and the Science, Technology and Innovation Law. The semiconductor sector is also included among 11 strategic technology areas in national development plans.
Vietnam currently hosts over 50 chip design companies employing about 7,000 engineers, alongside 15 firms engaged in chip packaging, testing, and equipment manufacturing with more than 6,600 engineers and 10,000 technicians. The country is also moving into higher value-added areas such as component manufacturing and chip testing. A key milestone will be Viettel’s launch of Vietnam’s first chip production facility. The nation will also host one of the world’s leading semiconductor exhibitions, underlining its rising profile as an investment hub.
Global technology leaders Nvidia and Qualcomm have designated Vietnam as a strategic hub for AI and chip R&D — a development expected to attract high-value supply chain shifts and strengthen Vietnam’s position in the global technology landscape.
Human Capital Development
Programme 1017, a flagship initiative to develop the semiconductor workforce through 2030, has already completed nine of its 34 tasks, with 25 in progress. Vietnam’s semiconductor workforce includes approximately 7,000 engineers in chip design, 6,000 in packaging and testing, and 10,000 technicians in manufacturing. Over 320 university lecturers have received specialised training, while 6,300 undergraduates are currently studying semiconductors.
Supplementary programmes aim to transition over 12,000 students from related fields into the sector, alongside training 600 master’s students and 120 PhD candidates. Additionally, Vietnam has 166 higher education institutions offering semiconductor-related courses, supported by ten small-scale laboratories for practical training. The Ministry of Finance has also launched the country’s first Semiconductor Incubation and Development Centre.
International collaboration has been strong, with global partners including Japan, Chinese Taipei, and the EU committing to provide about 1,000 scholarships annually. Industry leaders such as Coherent, Marvell, Viettel, FPT, and Phenikaa are actively engaged in research and training partnerships with universities.
Looking ahead, the Ministry of Finance aims to attract selective foreign direct investment, establish 100 chip design companies, build one small-scale chip fabrication facility, and set up ten chip packaging and testing plants. Plans also include training 1,300 lecturers and creating four national shared laboratories to enhance semiconductor R&D and training capacity.
