On September 21, Prime Minister Pham Minh Chinh signed Decision No. 1018/QD-TTg, marking a significant step in establishing Vietnam’s strategy and vision to develop its semiconductor industry. This ambitious plan lays out both short-term objectives leading up to 2030 and long-term projections extending to 2050. Central to this strategy are five pivotal tasks: developing specialized chips, promoting the electronics industry, enhancing human resources, attracting talent, and drawing investments into the semiconductor sector.
A Structured Roadmap for Success
Vietnam’s strategy unfolds in a three-phase roadmap. In Phase 1, which spans from 2024 to 2030, the focus is on leveraging the country’s geographical advantages and existing semiconductor expertise to attract foreign direct investment (FDI). The goals set for this phase include establishing at least 100 design companies, one small semiconductor chip manufacturing plant, and 10 packaging and testing facilities. The semiconductor industry is projected to generate over USD 25 billion in revenue annually, with the workforce growing to over 50,000 engineers and university graduates.
Moving into Phase 2 (2030-2040), Vietnam aims to solidify its position as a global semiconductor center. The targets include expanding to 200 design companies, establishing two chip manufacturing plants, and increasing packaging and testing facilities to 15. The expected annual revenue for this phase is projected to exceed USD 50 billion, with a workforce swelling to over 100,000 engineers and graduates.
Finally, in Phase 3 (2040-2050), Vietnam aspires to lead in the global semiconductor arena. The ambitious targets include establishing 300 design companies, constructing three semiconductor chip manufacturing plants, and building 20 packaging and testing facilities. The anticipated revenue for the semiconductor industry in this phase is expected to top USD 100 billion annually, with the broader electronics sector projected to exceed USD 1.045 trillion.
Addressing Challenges
Despite the government’s ambitious aims, several challenges loom. Power shortages pose a significant infrastructure limitation, potentially hindering the rapid development of semiconductor production capabilities. Competitive salaries are crucial for attracting and retaining talent in a sector where specialized skills are in high demand. Moreover, Vietnam’s technological foundation requires strengthening to ensure that the country can compete effectively in an industry that thrives on innovation and advanced technology.
Global Context and Investments
Vietnam’s efforts align with a broader global context, where semiconductor capabilities are not only vital for economic growth but also a matter of national security. Countries such as the United States, China, and Taiwan are heavily investing in their semiconductor sectors, underscoring the strategic importance of this industry in the global economy. For instance, the recent chip regulations in the United States aim to bolster domestic manufacturing and research capabilities, creating a competitive landscape.
To help secure foreign investments, Vietnam can implement incentives for international companies to set up research and development (R&D) facilities. For example, providing tax breaks or subsidies for companies that meet certain criteria could make the country an attractive destination for tech giants.
The Road Ahead
As Vietnam aims for a significant role in the global semiconductor market, success will rely heavily on the coordination between government policy, educational institutions, and the private sector. Prioritizing STEM education and vocational training will equip the workforce with the necessary skills to thrive in this high-tech environment.
In conclusion, while Vietnam’s ambition to become a leader in the semiconductor industry is commendable and strategically sound, the path to achieving this vision will require concerted efforts to address existing challenges, attract investments, and nurture talent. The outcome of this endeavor could not only transform Vietnam’s economy but also enhance its standing in the global technological landscape.
