The explosion of Artificial Intelligence (AI) has brought a turning point for Vietnam’s semiconductor industry. Vietnam has transitioned from primarily processing and testing to now having opportunities to engage more deeply in the global value chain. AI not only creates demand for a new generation of chips but also reshapes the design, production, and operation of smart factories.
The semiconductor industry is becoming a strategic pillar for all modern economies. Everything from AI, the Internet of Things (IoT), cloud computing to defense technology relies on chip design and production capabilities.
AI is the key driving force behind Vietnam’s shift from a processing production model to an innovation model, developing new value. In the semiconductor field, AI is reshaping the entire production process.
The semiconductor industry is the foundation of the digital age. Vietnam aims for the digital economy to account for 20% of GDP by 2025 and 30% by 2030; spending in science, technology, innovation, and digital transformation should account for at least 3% of GDP, aiming to rank in the top 40 of the Global Innovation Index (GII).
To achieve this goal, the government has introduced a series of important policies, such as the 57th Resolution (57-NQ/TW) issued by the Central Political Bureau of the Communist Party of Vietnam on December 22, 2024, regarding the promotion of breakthrough developments in national science and technology, innovation, and digital transformation, along with the “Law on Science and Technology and Innovation,” the “Law on Digital Technology Industry,” and the “Semiconductor Industry Development Strategy by 2030 and Vision for 2050.”
Deputy Minister of Science and Technology, Pham Hoang Phong, emphasized that the semiconductor industry is positioned as a strategic technology, playing a key role in enhancing national competitiveness, driving economic growth, and consolidating national status. As of November, Vietnam has over 170 semiconductor projects abroad, with a total investment of nearly 11.6 billion USD. Approximately 60 design companies, 8 packaging and testing projects, and more than 20 production, materials, and equipment supply companies are operating in Vietnam.
The new “Law on Science and Technology and Innovation” allows for the application of a “sandbox” mechanism, intellectual property protection, development of international standards, measurement, and quality systems, and attracts foreign investment with technology transfer and enhancement of endogenous capabilities, laying a solid legal foundation for the development of the semiconductor industry.
Vietnam has over 1.9 million IT professionals, including 7,000 semiconductor design engineers, showcasing a significant advantage in young labor. The government has implemented a semiconductor talent development program, aiming to train over 50,000 semiconductor engineers and bachelor’s degrees by 2030, while also building key laboratories, research centers, and conducting training programs closely linked with enterprises.
Professor Usagawa Tsuyoshi, a top semiconductor talent training expert from Japan and a special advisor at the Vietnam-Japan University under Hanoi National University, believes that if the government, enterprises, and universities can collaborate, Vietnam has great potential to become a semiconductor talent hub.
The semiconductor engineering training program at Vietnam-Japan University is designed in collaboration with top Japanese universities such as the University of Tokyo and Kumamoto University, aiming to standardize training according to international standards.
According to Hu Duc Thanh, Director of the National Institute of Digital Technology and Digital Transformation under the Ministry of Science and Technology, the ministry is drafting the “AI Law” and building a national cloud computing and big data center, aiming to achieve autonomy in computing infrastructure serving AI and semiconductors. The National Innovation Center (NIC) has identified AI and semiconductors as two strategic pillars, combined with the development of high-tech industrial clusters and connecting to the global supply chain.
Notably, the Viettel Military Telecom Industry Group is building its first chip factory, developing a series of chips for 5G, IoT, and cybersecurity, aiming to master core technologies.
Source: Semiconductor News
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