Catch the investment wave
According to the assessment of the Ministry of Planning and Investment, Vietnam is standing on the threshold of great potential to develop the semiconductor industry, with the participation of a series of the world's leading technology corporations.
Recently, many "giants" in the semiconductor industry such as Samsung, Qualcomm, Infineon, Amkor... have entered the Vietnamese market with many investment projects to build factories, expand production and assemble with a value of up to billions of USD. Semiconductor chip production is positioned as a new driving force to make Vietnam a prosperous country. It is forecasted that by the end of 2024, the value of Vietnam's semiconductor industry will exceed 6.16 billion USD, making Vietnam one of the important production centers of many global semiconductor enterprises.
Decision No. 1018/QD-TTg dated September 21, 2024 promulgating the Strategy for the development of Vietnam's semiconductor industry to 2030 and vision to 2050 sets the target for the 2024-2030 period: Selectively attracting FDI investment, establishing at least 100 design enterprises, 1 small-scale semiconductor chip manufacturing factory and 10 semiconductor product packaging and testing factories; developing a number of specialized semiconductor products in a number of industries and fields. The scale of revenue from the semiconductor industry in Vietnam reaches over 25 billion USD/year; the scale of revenue from the electronics industry in Vietnam reaches over 225 billion USD/year.
The 2030-2040 period aims to develop the semiconductor industry combining self-reliance and FDI, forming at least 200 design enterprises, 2 semiconductor chip manufacturing factories, 15 semiconductor product packaging and testing factories, gradually becoming self-sufficient in design technology and manufacturing specialized semiconductor products.
The scale of the semiconductor industry's revenue in Vietnam reaches over 50 billion USD/year. The scale of the electronics industry's revenue in Vietnam reaches over 485 billion USD/year. By 2050, the scale of the semiconductor industry's revenue in Vietnam will reach over 100 billion USD/year.
More motivation for development
Regarding the Digital Technology Industry Law Project, the Ministry of Information and Communications clearly stated the purpose as: "Promoting the development of the digital technology industry to become an economic sector that contributes greatly to the country's economy; Vietnam becomes the most favorable environment to nurture and develop digital technology enterprises" and "Developing the digital technology industry with a focus on Vietnamese digital technology enterprises, shifting from assembly and processing to innovation, design, and production in Vietnam; contributing to building a digital government, a driving force for the development of the digital economy and digital society".
Regarding this draft Law, during the discussion at the National Assembly session on November 23, Prime Minister Pham Minh Chinh emphasized the need for special incentives on land, fees, clean water supply, electricity, infrastructure and finance for the semiconductor industry. In particular, the Prime Minister stated that financial incentives are a way to attract investors, corporations and large enterprises in the world to expand chip production activities in Vietnam, creating opportunities for access and technology transfer. Along with financial incentives, there should be appropriate support to make good use of geographical advantages, ensuring persuasiveness to investors and large enterprises.
Decision No. 1437/QD-TTg dated January 20, 2024 promulgating the National Action Plan on Digital Economic Development for the 2024-2025 period clearly states the requirement: "Prioritize focusing on a number of key industries and fields where Vietnam has great potential and room for digital economic development, including: Wholesale and retail trade; Agriculture; Processing and manufacturing industry; Tourism; Logistics".
These are the legal bases for developing the digital economy, in which the semiconductor industry is considered one of the central subjects for rapid and sustainable development in the coming time.
