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Seizing the Opportunity for Semiconductor Industry Development in Vietnam

Published: 4.24.2024

The semiconductor industry plays an increasingly vital role in the global economy, with a market size exceeding $520 billion in 2023 and continuing rapid growth. However, for over 30 years, the semiconductor industry's value chain has been challenging for developing countries to penetrate. 


At a recent seminar on scientific research, technology orientation, and human resource development for the semiconductor industry in Vietnam, Mr. Nguyen Cuong Hoang from Viettel Group emphasized the industry's presence in modern economies, powering sectors from computing, telecommunications, banking, and healthcare to transportation, manufacturing, entertainment, and beyond, relying on advancements in AI, IoT, Big Data, 5G, supercomputing, and autonomous vehicles—all driven by semiconductor industry growth. 


As a backbone of the digital economy, the semiconductor industry is pivotal, attracting various global industries, projected to generate over $620 billion in revenue by 2024 and surpassing $1 trillion by 2030 (according to Gartner). Recognized as a cornerstone in the 21st-century technological competition among nations, Vietnam is evaluated as having the necessary conditions to develop its semiconductor technology, including stable political systems, favorable geographical locations, abundant resources, abundant technical labor force, and rapidly developing digital infrastructure. 


To seize the opportunity for semiconductor industry development in Vietnam, recommendations include increased government investment in semiconductor research and development, establishment of high-tech research centers, financial support for R&D projects, infrastructure development, logistics improvement, tax incentives, and financial packages for semiconductor businesses.  


Furthermore, enhancing international cooperation, facilitating technology transfer and investment from leading semiconductor corporations, and fostering collaboration between domestic and international entities are essential. Finally, businesses are encouraged to invest in research, innovation, and collaboration with universities and research institutes to access high-quality talent and advanced technologies. 


Addressing human resource development, the Ministry of Science and Technology is implementing projects to promote technology transfer, nurture domestic semiconductor enterprises, and train semiconductor-related human resources, focusing on hardware design and advanced chip manufacturing. Through these initiatives, Vietnam aims to position itself as a prominent player in the global semiconductor industry. 

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