On October 16, 2024, Vietnam unveiled a comprehensive national strategy aimed at developing its semiconductor industry by 2030. This initiative is designed to establish a robust semiconductor sector that emphasizes local expertise and integration into key stages of the semiconductor value chain, including assembly, packaging, and testing. The strategy aligns with Vietnam's broader goals of enhancing its electronics industry and advancing its artificial intelligence capabilities. Authors Ngoc Bach and Kendrick Chan, associated with the Tony Blair Institute for Global Change, underscore the importance of this initiative in positioning Vietnam as a competitive player in the global semiconductor market. [ff2bc4eb]
This move comes amid a global race for semiconductor dominance, particularly intensified by the ongoing US-China technological rivalry, which has significantly impacted global semiconductor supply chains. Vietnam is one of seven countries eligible for support under the US CHIPS Act, reflecting its strategic importance in the semiconductor landscape. The US aims for semiconductor self-sufficiency by 2025, which could further influence Vietnam's development plans. [980aadae][e6e7410e]
Vietnam's semiconductor industry is projected to reach USD 6.6 billion by 2024, but the country currently faces a significant skills gap, with only 5,500 chip design engineers available compared to the 50,000 needed by 2030. To address this, the Vietnamese government is offering tax incentives for semiconductor investments and is exploring collaborations with Taiwan to enhance workforce development. [980aadae][ff2bc4eb]
As the semiconductor industry continues to evolve, Vietnam's proactive approach may position it favorably within the Asia-Pacific region, potentially attracting foreign investments and partnerships that could further stimulate its economic growth. The strategy includes specific milestones for 2030 and 2050, aiming to solidify Vietnam's role in the global semiconductor supply chain. [ff2bc4eb]