Vietnam is set to invest approximately VND12.8 trillion ($501.2 million) in building a small-scale semiconductor chip manufacturing plant, aimed at serving research, design, production, packaging, and testing. This initiative is part of the country's broader strategy to develop its semiconductor industry, as outlined in a recently approved plan by Prime Minister Pham Minh Chinh.

Nguyen Khac Lich, Director of the Department of Information and Communications Technology under the Ministry of Information and Communications, revealed that the government has signed off on a long-term strategy for semiconductor industry development, extending to 2030 with a vision toward 2050. This marks the first time Vietnam has formulated such a comprehensive plan for the sector.

Lich emphasized that Vietnam must prioritize mastering research and technology development in semiconductors and electronics to avoid becoming merely a processing hub. The country plans to leverage its geopolitical advantages, attract investment, and focus on infrastructure development, including electricity and water, while implementing supportive policies and mechanisms.

In the short term, Vietnam aims to establish a small-scale, high-tech chip manufacturing plant to meet domestic demand, integrate into the global supply chain, and ensure national security in the event of supply chain disruptions. The National Assembly recently passed a resolution to pilot special policies and mechanisms to foster breakthroughs in science, technology, innovation, and digital transformation. A key provision of the resolution allows financial support for the construction of the first semiconductor chip plant, which will serve research, training, and production purposes.

Enterprises investing in the plant will receive significant government backing. Specifically, the state will cover 30% of the total project investment directly from the central budget, provided the plant is operational by December 31, 2030. The total support will not exceed VND10 trillion ($391.6 million). Additionally, during the project's preparation and implementation, enterprises can allocate 10-20% of their annual taxable income to a technology development fund to supplement the project, with the total deduction not exceeding the project's investment.

Minister of Information and Communications Nguyen Manh Hung noted that this marks the first time the state has supported investment in laboratories, making the semiconductor chip plant a dual-purpose facility for research and small-scale production. Companies like FPT and Viettel have already entered the semiconductor chip design and production space. Viettel recently announced the successful design of the 5G DFE chip, the most complex chip in Southeast Asia, capable of processing 1 trillion calculations per second.

Dr. Nguyen Trung Kien, Deputy Head of Viettel's Semiconductor Technology Department, highlighted the challenges of the semiconductor industry, which requires deep expertise in research, design, and production. Major General Nguyen Dinh Chien, Viettel's Deputy General Director, added that developing the semiconductor industry is a long-term endeavor, requiring a balanced approach to research and business. He stressed the importance of designing chips that meet both domestic and national security needs, laying the foundation for advanced, next-generation technologies.

Quang-Dam Le, CEO of Marvell Technology Vietnam, described the current geopolitical climate as a “once-in-a-century” opportunity for Vietnam's semiconductor industry. He urged industry professionals and the government to unite and capitalize on this moment to create lasting value for the country.

With a clear strategy, government support, and a growing pool of talent, Vietnam is positioning itself to become a significant player in the global semiconductor industry.