Vietnam is quickly becoming a key player in the global semiconductor supply chain, as leading international technology companies make strategic moves to shift their operations to the country. These companies are setting up research centres, expanding manufacturing capacities, and relocating supply chains, creating a major opportunity for Vietnam to strengthen its semiconductor industry by leveraging the expertise of industry giants.

Nguyen Chi Dung, Vietnam's Minister of Planning and Investment, shared that the country now hosts 174 foreign-invested semiconductor projects, with total registered capital nearing $11.6 billion USD.

The Ministry has been actively engaging with global tech giants like Qualcomm, Google, Meta, LAM Research, Qorvo, and AlChip to facilitate the relocation of supply chains, the establishment of R&D centres, and the expansion of manufacturing operations in Vietnam.

A significant milestone in this effort is the landmark cooperation agreement between the Vietnamese government and US tech giant NVIDIA. Minister Dung hailed the partnership as a "critical push" for Vietnam's technological development, particularly in artificial intelligence (AI) and semiconductors.

Associate Professor Nguyen Thuong Lang from the Institute of Trade and International Economics at the National Economics University noted that Vietnam's global standing has risen, with major corporations now seeing it as a destination for high-tech investments, particularly in semiconductors and AI.

Lang further highlighted that over 60% of Vietnam's FDI inflows in 2024 came from mainland China, Hong Kong, Taiwan, and Singapore. He attributed this surge to Vietnam's participation in numerous free trade agreements, making it an efficient base for production and exports to the US and Europe.

Vietnam has emerged as a critical “outpost” for expanding and shifting foreign direct investment (FDI), Lang stated. He also expressed optimism about the semiconductor industry's growth potential but warned that logistical delays and high costs remain significant hurdles.

At the Vietnam Logistics Forum 2024, Yap Kwong Weng, CEO of Vietnam SuperPort, emphasized ASEAN's growing role as a manufacturing hub, with rising FDI inflows. He pointed out that Vietnam's strategic location in Southeast Asia, close proximity to China, and extensive coastline make it an attractive logistics hub. However, he noted the need for better-connected logistics centres near major ports and airports to fully support sustained growth. Yap stressed that the development of multimodal transport corridors is essential for long-term success.

Pham Sy Thanh, Director of the Vietnam Centre for Economics and Policy Research (VEPR)'s China Economic Research Programme, noted that the semiconductor industry is largely dominated by a few companies, with the US and Europe leading in intellectual property and chip design, while the US and Japan control the supply of essential chemicals and materials.

Vietnam's emerging semiconductor sector is benefiting from favorable policies, particularly those from global leaders like the US, and is poised for further growth as it continues to attract high-tech investments.