Where Does Vietnam Stand in the Semiconductor Race?

Vietnam: An Ideal Destination for the Semiconductor Industry

In recent years, Vietnam has emerged as an attractive destination for major technology corporations in the semiconductor industry. With advantages such as low labor costs, increasingly developed infrastructure, and strong government support, Vietnam is proving to play a crucial role in the global supply chain of this industry.

1. Vietnam: A New Semiconductor Manufacturing Hub in Southeast Asia

The global semiconductor market is witnessing a "technology migration" from countries like China and Taiwan, as major semiconductor corporations choose Vietnam as their preferred location for manufacturing plants. Big names like Samsung, Intel, LG, and Foxconn have made significant investments in Vietnam, transforming the country into an important production hub in the region.

• Affordable Labor: Vietnam boasts a plentiful labor force with much lower costs compared to other countries in the region, helping businesses reduce operational costs and improve production efficiency.

• Developing Infrastructure: Industrial zones in Vietnam are continuously being upgraded with modern infrastructure, attracting foreign investment in semiconductor manufacturing.

2. Reality and Prospects of the Semiconductor Industry in Vietnam

In 2023, Tripod Technology, one of the world’s leading electronic circuit board manufacturers, with legal support from ALTAS, invested in Vietnam by acquiring FICT Vietnam (a subsidiary of Fujitsu) at the Biên Hòa 2 Industrial Park in Đồng Nai. This is a clear example of the growing semiconductor industry in Vietnam.

Additionally, on September 21, 2024, Prime Minister Pham Minh Chính signed Decision No. 1018/QD-TTg, which established the Vietnam Semiconductor Industry Development Strategy until 2030, Vision 2050. This strategy aims to position Vietnam as one of the world’s leading semiconductor production centers, contributing to the future development of the high-tech industry.

On September 21, 2024, Prime Minister Pham Minh Chinh signed Decision No. 1018/QD-TTg promulgating the Strategy for developing Vietnam's semiconductor industry to 2030 and vision to 2050. (photo: gov.vn)

3. Potential for Semiconductor Industry Development in Vietnam

Vietnam’s significant advantages—low labor costs, strong infrastructure, and government support—create favorable conditions for the robust growth of the semiconductor industry in the future. Beyond simply manufacturing electronic products, Vietnam has the potential to develop into a center for research and production of high-quality semiconductor chips, serving both domestic and international markets.

Vietnamese technology companies can leverage the substantial opportunities presented by the semiconductor industry's growth to expand production, scale operations, and broaden export markets, particularly amidst the ongoing technology migration from other countries.

Conclusion

Vietnam stands at the threshold of a great opportunity to develop its semiconductor industry and become a high-tech manufacturing hub in the region. With strong government support and long-term development strategies, the semiconductor sector in Vietnam has the potential to become a key industry, not only contributing to economic development but also creating opportunities for young entrepreneurs and startups in the technology field.

Author: Thanh Trúc - Director & Host at ALTAS TALK
Date Published: December 7, 2024