Vietnam takes strong actions to attract semiconductor investment

The fields of electronics manufacturing, semiconductor chip production, and smart manufacturing are currently among the top priority sectors for attracting investment in Vietnam.

This statement was made by Deputy Minister of Planning and Investment Tran Duy Dong at the Vietnam Global Manufacturing 2024 on March 26 in Hanoi.

An overview of the conference. Photo: VNA

He added, to attract foreign direct investment (FDI) in the semiconductor industry, Vietnam has taken strong actions to create a competitive advantage.

The government has assigned various ministries and sectors to implement numerous tasks, demonstrating readiness and a desire to welcome new investment waves in this industry in Vietnam, the Deputy Minister said.

Accordingly, the Ministry of Information and Communications will develop a strategy for the development of the semiconductor industry in Vietnam until 2030. The Ministry of Planning and Investment will lead the construction of a project to develop the semiconductor workforce in Vietnam until 2030, with the goal of training 50,000 semiconductor engineers.

In addition to various supportive policy mechanisms for high-tech industries, the National Assembly has also passed a resolution assigning the government to develop a decree on the investment support fund, which is expected to provide significant support for high-tech, electronics, and semiconductor sectors.

Phan Huu Thang, President of the Institute for International Investment Studies, said that when many giants in the electronics and semiconductor industry choose Vietnam as their destination, notable names include Intel, Bosch, Panasonic, Kyocera, Foxconn, Samsung, and LG.

“With the presence of many major players in the electronics and semiconductor industry, it has demonstrated the improvement in investment and business environment, which has been highly rated by them,” he underlined.

To attract global giants in the semiconductor and electronics industry, necessary conditions to attract investment in localities have been ensured. 

Speaking at the event, Deputy Minister Tran Duy Dong highlighted the strengthening of land infrastructure, strategic transportation infrastructure, and preparation of necessary aspects such as information technology, electricity, water, and social infrastructure for workers in the semiconductor industry.

“Factors such as infrastructure, policy mechanisms, research and development, strategy, and human resources all demonstrate the government's and prime minister's guidance is appropriate and timely, enabling Vietnam to take ownership and participate more deeply in the global value chain of the electronics and semiconductor industry,” He emphasized.

Tran Tuan Anh, Deputy Head of the Management Board of Hanoi Industrial and Export Processing Zones, stated that the city has set a target to establish two to five new industrial zones with clean land by 2025 to attract investment projects. 

He added, to achieve this goal, the city will continue to create a clean land fund to attract domestic and foreign investment projects in high-tech, semiconductor electronics, clean technology, and environmentally friendly industries with highly competitive commercial products.

Deputy Minister Tran Duy Dong affirmed that the competition among countries in the region and globally to attract FDI, especially in the electronics and semiconductor industry, is fierce because all countries recognize benefits, potential, and scale of this industry, which could reach over $1 trillion by 2020.

“The country that responds quickly with appropriate and decisive policies will take control and seize the new wave,” he said.