Viet Nam: Semiconductor Investment Powers Smart Industry Growth

Prime Minister Pham Minh Chinh highlighted Viet Nam’s commitment to macroeconomic stability, a supportive regulatory framework, and strong investor backing to drive growth in a smart semiconductor ecosystem, addressing a delegation from Semiconductor Equipment and Materials International (SEMI).

Viet Nam is steering toward rapid, sustainable growth with green, circular, knowledge-based digital economies. This is driven by science, technology, innovation, and digital transformation, including the semiconductor sector.

The country aims for at least 8% GDP growth in 2025 as well as a double-digit expansion in the following years. It is relying on global partnerships for finance, talent development, technology transfer and management expertise, particularly in semiconductor manufacturing, the Minister added.

Viet Nam aims to achieve technological self-reliance and competitiveness in strategic sectors, particularly semiconductors. The country has already issued a national semiconductor industry development strategy through 2030, with a vision to 2050. Alongside this, it published a workforce development plan for the sector and identified 11 strategic technologies and products. Its first chip manufacturing facility is set to launch next year.

The Minister urged international stakeholders to trust Viet Nam’s investment climate and scale up investments. He proposed policies for mutual gain, a comprehensive semiconductor ecosystem and an R&D hub. He also called for progress from testing and packaging to design, fabrication and manufacturing, and emphasised the need to train skilled engineers and integrate local companies into the global semiconductor value chain.

The country will continue to improve its regulatory framework, develop modern, synchronous infrastructure, boost management capabilities and workforce quality and streamline administrative procedures. The government will set up a national one-stop investment service portal to build a domestic semiconductor ecosystem and support efficient, long-term investment.

He emphasised fostering partnerships grounded in balanced benefits and shared risks, guided by mutual listening, shared understanding and a common vision to achieve collective success.

The press release said that representatives of international semiconductor companies were impressed by Viet Nam’s recent socio-economic progress, particularly its science, technology and semiconductor strategies, which follow international trends and objectives. They affirmed their confidence in the country’s semiconductor development policies.

The delegation recommended tighter regulations, streamlined administrative procedures, English-language one-stop investment services, SME access to supply chains and infrastructure such as clean energy and digital grids. Viet Nam would also benefit from coordinated value-chain growth in research, testing, manufacturing, packaging and artificial intelligence (AI).

Looking to increase investments, they recommended that Viet Nam define clear priorities and establish a national semiconductor association to connect government, industry and academia. This would also facilitate policymaking, research, workforce training, supply chains, capital and a comprehensive ecosystem to position Viet Nam as a regional and global chip hub.

As OpenGov Asia reported, with the global semiconductor market exceeding US$600 billion in 2024 and expected to surpass US$1 trillion by 2030, Viet Nam is emerging as a highly promising player. It is bolstered by political and economic stability, a strategic location, a young tech-savvy workforce and a robust electronics manufacturing base.

Several international companies have already set up operations in Viet Nam specialising in packaging, testing and assembly. The 2024 launch of the National Semiconductor Development Strategy demonstrated the country’s commitment to expanding into integrated circuit (IC) design, advanced materials and chip fabrication, signalling a strategic shift from basic manufacturing toward becoming a regional hub for innovation and R&D.

The Vietnamese semiconductor industry is set to grow at an annual rate of 9%, reaching US$31.39 billion by 2029, underpinned by proactive government policies, global partnerships and robust investment activity.

Investors stand to gain from incentives such as corporate tax reductions, import duty exemptions for scientific and digital innovation projects and VAT waivers for high-tech R&D and manufacturing, reinforcing Viet Nam’s position as a rising hub for smart semiconductor development.

Source: OpenGov Asia