Vietnam is ready to welcome a new wave of investment in the semiconductor industry

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Deputy Minister of Planning and Investment Tran Duy Dong

Could you please tell us about Vietnam's orientation in attracting FDI to develop the semiconductor industry?

Vietnam's current orientation to attract FDI is to attract selective investment towards high-tech projects with high added value and spillover properties, connecting with domestic enterprises. In particular, Vietnam prioritizes projects such as high technology, electronic projects, semiconductors, innovation... The flow of quality investment capital pouring into Vietnam in the coming time is very promising, especially capital flows into the semiconductor industry when Vietnam is considered an important link in the global semiconductor production chain, a country with rare earth potential and a competitive advantage in attracting investment in trend of shifting global production chains.

With high determination to participate in the global semiconductor value chain, the Vietnamese Government always supports and facilitates semiconductor businesses to invest in Vietnam. To take advantage of opportunities and potential for developing the semiconductor industry, Vietnam has been gradually perfecting the system of policies and laws on investment and businesses to create favorable conditions for investors; Deploying many solutions to support Vietnamese businesses to participate more deeply in the global supply chain in the semiconductor industry.

Could you please tell us about the changes in investment attraction in Vietnam's semiconductor industry after Vietnam and the United States upgraded their strategic relationship?

As we know, in September 2023, the President of the United States visited Vietnam. On the occasion of this visit, the two countries issued a Joint Statement on upgrading Vietnam - United States relations to a Comprehensive Strategic Partnership. One of the breakthrough cooperation between the two countries in the coming period is the cooperation agreement in developing the semiconductor industry ecosystem, especially human resource training.

This is an important factor to enable Vietnam to become the world's factory in semiconductor chip production. After the US President's visit, many large corporations have expressed interest and sought to invest in the semiconductor industry in Vietnam. For example, the business delegation of the Korean Semiconductor Industry Association; Chairman of the American Semiconductor Industry Association (SIA) and leaders of leading US semiconductor companies such as Intel, Qualcom, Ampere, ARM...; Chairman and General Director of NVIDIA Corporation (USA)... came to Vietnam to explore the market. Investors from other countries such as China, Japan... also increased business trips to Vietnam to seek investment opportunities in the processing, manufacturing, and high-tech industries.

How actively has Vietnam prepared to welcome this important investment capital flow, sir?

To promote the wave of investment in the semiconductor industry in Vietnam, recently, Vietnam has actively prepared conditions to welcome and cooperate with investors in the field of innovation, semiconductor industry and artificial intelligence.

Accordingly, the Government assigned the Ministry of Information and Communications to develop a Strategy for developing Vietnam's semiconductor industry until 2030. Regarding human resources, the Ministry of Planning and Investment is urgently implementing the Human Resources Development Project for the semiconductor industry in Vietnam by 2030 with a very specific goal of training 50,000 semiconductor engineers. The Government has also established the National Innovation Center (NIC), in which the semiconductor industry is one of NIC's eight key development areas. In this field, NIC has signed a cooperation agreement with the two largest chip design corporations in the United States, Synopsys and Garden, to establish a chip research and design center in NIC's facilities. In addition to many support mechanisms and policies for high-tech industries, the National Assembly also passed a Resolution assigning the Government to develop a Decree on Investment Support Fund, which is expected to provide adequate support for with the fields of high technology, electronics, and semiconductors.

In particular, the necessary conditions to attract investment in localities have been ensured. Regarding land infrastructure, localities have promoted site clearance and created clean sites to be able to provide for businesses. Strategic transport infrastructure connecting economic centers, seaports, and airports is also being strengthened. Localities also prepare information technology, electricity, water, and social infrastructure issues for workers in the semiconductor industry. Thus, factors such as hard infrastructure, soft infrastructure, policy mechanisms, research and development, strategy and especially human resources all demonstrate that the direction of the Government and the Prime Minister is very correct, timely, so that we can master and be ready to participate deeper in the value chain in the global electronics and semiconductor industry.

According to the Deputy Minister, what are the challenges in competing to attract foreign investment resources to develop the semiconductor industry in Vietnam?

Currently, all countries see that the benefits, potential and scale of the semiconductor industry are huge, by 2030 it will have reached more than 1,000 billion USD. Therefore, competition among countries in the region and around the world to attract FDI, especially in the electronics and semiconductor industries, is very fierce. Therefore, those who are more adaptable and have more appropriate and drastic policies will take priorities.

In that context, the Government and the Prime Minister are strongly directing the Ministry of Planning and Investment and relevant ministries and branches to prepare the best conditions to receive this investment wave. First of all, we must have a strategic roadmap, a methodical and fundamental direction. Second, it is an urgent matter to quickly deploy to immediately meet human resource needs. Third, it is necessary to supplement and improve institutions, mechanisms and policies. In order to introduce highly competitive policies, the Ministry of Planning and Investment and other ministries and branches have been researching and developing investment incentive policies for this industry such as: preferential taxes for the semiconductor industry; intellectual property protection policy for new technology industry; mechanism for R&D research centers; digital infrastructure development....

With high determination and efforts of the Government and ministries and branches to develop the semiconductor industry ecosystem, especially human resource training, I believe that in the coming time, investment and business activities in Semiconductors industry will increasingly develop, meeting the needs and desires of the Government as well as the investor community.

Thanks a lot, sir!