Investing in trial production of semiconductor chips could cost $7 billion
As the global semiconductor industry continues to grow, Vietnam is becoming a promising destination in the semiconductor industry, with bright growth prospects. Vietnam's semiconductor industry revenue in 2024 is estimated to reach 18.23 billion USD, growing by 11.5%, equal to the world's average growth rate.
Vietnam's semiconductor market is expected to reach 7.01 billion USD by 2028, with an average annual industry growth rate of about 6.69% in the period 2023-2028. By 2030, Vietnam will have at least 5,000 engineers or higher with in-depth expertise in AI serving the semiconductor industry.
The recent cooperation agreement between Vietnam and NVIDIA not only promotes the strong development of AI technology in Vietnam according to international standards but also creates momentum for the innovation ecosystem and high-tech industry in Southeast Asia. This is an important milestone, opening up opportunities for Vietnam to become a leading AI Research and Development (R&D) Center in Asia, creating breakthroughs for key technology industries and expanding career opportunities for domestic human resources.
It can be seen that AI and the semiconductor industry have become key areas of global technology development. Facing the strong wave of technological transformation, Vietnam has quickly caught up. Some localities such as Ho Chi Minh City, Da Nang, Bac Ninh, Bac Giang, Vinh Phuc, Binh Duong, etc. have actively and proactively implemented activities to develop ecosystems and human resources, attract investment and international cooperation to develop the semiconductor industry.
For Vietnam, our semiconductor supply chain is in its early stages, focusing on two main areas: chip design and assembly, packaging, and testing.
According to Party Central Committee member and Deputy Prime Minister Tran Hong Ha, the Government has identified AI as one of the priority areas in the national development strategy and is implementing policies to support research, technology development, and digital infrastructure construction.
Regarding the semiconductor industry, the Deputy Prime Minister said that in recent times, the Prime Minister and ministries and sectors have been very determined to implement it. Fully participating in value chains and mastering all stages in this industry "is a problem". Vietnam has the advantage that countries that are mastering production technology can prioritize transferring part of the technology, but mastering technology and mastering production is not simple because it requires basic research, combining many different stages and long-term implementation.
The Deputy Prime Minister said that the Prime Minister has directed investment in a number of science and technology centers to serve basic research and universities can share. Along with that is the investment in a number of innovation centers to conduct initial stages as well as basic research to be able to master the following steps.
These investments are huge, for example, the trial production area also requires an investment of 7 billion USD. Therefore, the participation of both the State and enterprises is needed.
Green economy is the way to go
At the meeting on promulgating the national green economic sector system in June 2024, Deputy Prime Minister Tran Hong Ha emphasized that green criteria are very important for Vietnamese enterprises in international integration and investment attraction. Integrating green criteria into the national economic system aims to implement major policies and viewpoints of the Party and State as well as strategies, plans and laws on green economy and circular economy.
The green classification system not only aims to incorporate green criteria into the current economic system but also integrates a number of new economic sectors such as: Investment and restoration of the natural environment, use of new technology in providing environmental treatment services, renewable energy, etc.
Or at the Vietnam Development Bridge Forum 2024, Deputy Prime Minister Tran Hong Ha also affirmed that green economy and circular economy are becoming inevitable trends and are actions that we need to transform soon to protect ourselves. “This is the way to save ourselves. It is time to have a way to realize these policies. It will no longer be a slogan or a call but requires us to quickly move from awareness to action,” the Deputy Prime Minister emphasized.
With the legal environment for green transformation and renewable energy development being urgently completed, the Deputy Prime Minister affirmed: "We have no other choice, green economy is the path we must choose."
Vietnam is behind but will go together and get ahead.
Entering 2025, Deputy Prime Minister Tran Hong Ha emphasized that this will be a pivotal year, preparing for the transition to a new era of the nation with ambitious and challenging goals, including two goals of 100 years of the Party's founding and 100 years of the country's founding; with breakthrough solutions focusing on science, technology, innovation and development models based on resources from knowledge, talent, renewable energy, green economy, circular economy, digital economy... instead of natural resources.
Speaking at a meeting with Embassy officials and representatives of the Vietnamese community in Helsinki (Finland) on November 28, 2024, Deputy Prime Minister Tran Hong Ha affirmed that these are areas that can help Vietnam "become behind but will go along and surpass" many other countries if it can attract direct participation or bridge the gap of Vietnamese businesses, experts, and scientists holding important positions in large corporations and research institutions related to core technology, new materials, and renewable energy.
(Posted on the special edition of Lao Dong Xuan At Ty)
