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Home Industrial: Technology, News & Trends Vietnam Intensifies Efforts to Attract Foreign Semiconductor Companies

Vietnam Intensifies Efforts to Attract Foreign Semiconductor Companies

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Vietnam semiconductor manufacturing

Vietnam is aggressively pursuing a series of bounties and incentives to attract foreign semiconductor companies to invest in the country and further boost its semiconductor industry. The Hanoi government has committed to an ambitious program aimed at competing with Asian rivals such as Malaysia in the booming chip sector.

To attract foreign semiconductor companies, Vietnam has pledged to offer tax breaks and other incentives to help them establish and grow their operations in the country. Vietnam’s national plan will include funding for the semiconductor industry through a science fund and joint national research with private tech companies such as FPT, the science minister said in a recent interview.

Vietnam’s initiative has caught the attention of global semiconductor giants. Companies ranging from NVIDIA to Samsung are looking to expand their chip operations in Vietnam. Vietnam is expected to receive millions of dollars in financial support from the US Chip and Science Act and already boasts Intel’s largest testing and packaging plant in the world.

However, Vietnam’s semiconductor industry still faces some challenges. Vietnam’s Minister of Science and Technology Hoang Thanh Tat said the country’s semiconductor industry has a low localization rate, unsynchronised R&D activities, and limited highly qualified human resources. To overcome these challenges, Vietnam plans to train more engineers and cooperate with universities to offer semiconductor courses to strengthen its foundation in science and technology education.

In addition, Vietnam has made efforts to attract foreign experts to its labor market and improve related policies. Recently, Vietnam has faced a slowdown in the issuance of foreign work permits, but the government is taking steps to address the issue.

Vietnam aims to train 50,000 engineers for the industry by 2030 and demonstrate its dedication to the semiconductor industry. Hanoi has integrated it into two national programs: the National Science and Technology Development Foundation, which provides grants and other support; and the National Product Development Programme, which aims to create competitive products, including for export.

The technology race between Washington and Beijing has also prompted the semiconductor industry and related companies to seek a third location to avoid repercussions. Companies such as Apple have begun shifting engineering resources to Vietnam for product development. This trend is expected to provide Vietnam with more opportunities to attract foreign semiconductor companies to invest in the country.

Overall, Vietnam is actively attracting foreign semiconductor companies to invest in the country through bounties and incentives and is working to overcome the challenges facing the industry. The support of the Vietnamese government and the interest of global semiconductor companies have given the country a positive outlook in the semiconductor sector.

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