Communities examine potential benefits from microchip technology implementation
Vietnam is making strides in establishing itself as a significant player in the global semiconductor industry. Key cities, including Ho Chi Minh City, Bac Ninh, Dong Nai, and Hanoi, are spearheading this transformation through coordinated national strategies focused on infrastructure, talent development, foreign investment, and research and development (R&D).
National Semiconductor Development Strategy
At the heart of this effort is Vietnam’s comprehensive National Semiconductor Development Strategy. This plan involves 38 projects overseen by 10 ministries, aiming to build an integrated ecosystem, expand infrastructure, and enhance institutional frameworks [2][3][5]. Major cities are integral in executing these plans.
Infrastructure Investment
Infrastructure investment is a priority, with expansion of Vietnamese-owned chip manufacturing facilities and the establishment of international-standard cleanroom labs and research centers in major urban centers like Ho Chi Minh City, Bac Ninh, Dong Nai, and Hanoi [2][5].
Human Resource Development
A strong emphasis is placed on human resource development, with a goal to train at least 50,000 semiconductor engineers nationwide by 2030. Universities and training institutions across these regions actively participate in workforce capacity building, with expert advisory groups from the global semiconductor industry [1][2][3].
Attracting Foreign Direct Investment (FDI)
Vietnam has attracted around 170 FDI projects totaling nearly US$11.6 billion in the semiconductor and high-tech sectors. Cities like Ho Chi Minh City, Bac Ninh, Dong Nai, and Hanoi serve as hubs for foreign chip design, packaging, testing, and support companies to establish operations, fostering a competitive and integrated ecosystem [2][4][5].
Research and Development (R&D) Hubs
Formation of R&D centers focused on chip design, fabrication, AI, quantum technology, and smart manufacturing is underway, often in partnership with international experts from Taiwan, the US, and other technology leaders, enhancing innovation capacity in these cities [1].
Policy and Institutional Frameworks
The government continuously refines laws such as the Digital Technology Industry Law and Science, Technology and Innovation Law, creating an enabling environment tailored to semiconductor industry needs, removing institutional barriers, and ensuring a market-driven competitive sector [2][4][5].
City- and Province-Level Roles
- Ho Chi Minh City: Acts as a major industrial and innovation hub with advanced infrastructure and numerous semiconductor firms.
- Bac Ninh and Dong Nai: Benefit from proximity to Hanoi and Ho Chi Minh City respectively, providing industrial zones and supporting manufacturing infrastructure.
- Hanoi: Central to policy coordination, talent development, and R&D activities, hosting many academic and governmental institutions linked to semiconductor development [1][2][4].
International Cooperation and Global Positioning
Vietnam is engaging with global semiconductor alliances and hosting major semiconductor events to showcase its ecosystem, build networks, and attract high-value technology investments [1][5].
This unified effort aims to produce key semiconductor chips domestically by 2027 and position Vietnam as a competitive player in the global technology supply chain [2][3][5]. Major technology corporations like Intel, Samsung, Marvell, Renesas, Siemens, Ampere Computing, and others have been wooed to invest in Ho Chi Minh City. Singapore led the charge among 74 countries and territories, pouring in $2.84 billion of the new capital total.
Vietnam is emerging as a potential destination for semiconductor supply chains due to numerous positive signals and bustling investment promotion in 2024. Ho Chi Minh City is proposing new incentive mechanisms to develop the semiconductor industry, and the close coordination between government agencies, businesses, and universities is gradually removing challenges in training for the development of the semiconductor industry.
In Dong Nai province, Coherent Corporation's new $127 million plant produces precision-engineered materials and photonics components for various applications. Segyung Vina Co., Ltd., a company producing plastic products for cars, mobile phones, and electronic devices, has decided to build an additional factory in Bac Ninh. Ho Chi Minh City recommends prioritizing the expansion of the high-tech park and the establishment of a digital technology industrial park.
In the first seven months of 2025, Vietnam attracted $24.09 billion in foreign direct investment, a 27.3% surge on-year. With these strategies in place, Vietnam is well on its way to becoming a significant player in the global semiconductor industry.
- The National Semiconductor Development Strategy, which involves 38 projects overseen by 10 ministries, aims to enhance the institutional frameworks in the finance sector, as it targets building an integrated ecosystem and expanding infrastructure.
- With the formation of R&D centers in Ho Chi Minh City, Bac Ninh, Dong Nai, and Hanoi, Vietnam is collaborating with global technology leaders like Taiwan and the US to advance in areas such as chip design, quantum technology, and smart manufacturing, which are integral to the finance and technology industries.
