Vietnam's Emerging Role in Semiconductor Manufacturing
Vietnam's Entry into the Semiconductor Race
The chip-semiconductor manufacturing industry and the development of the microchip industry have become a fierce race between major countries. Vietnam started to enter the “semiconductor road” and gradually asserted its position, showing reasonable strategies and calculations.
Sputnik News Highlights Vietnam's Strategies
According to Sputnik news, the chip-semiconductor manufacturing industry and the development of the microchip industry have become a fierce race between major countries. Vietnam started to enter the “semiconductor road” and gradually asserted its position, showing reasonable strategies and calculations. Sputnik quoted comments from researchers Le Phan and Nguyen Hai Thanh from the Central Institute for Economic Management (CIEM) on Vietnam’s progress in the global chip supply chain East Asia Forum.
Samsung's Investment in Vietnam
Samsung Electronics, the world’s largest DRAM supplier in 2021, is preparing to produce transistor grids in Vietnam with an investment of $850 million at the Samsung Electro-Mechanics Vietnam factory. Additionally, Samsung plans to inaugurate a Research and Development Center in Hanoi by the end of 2022 or early 2023, serving not only Vietnam but also Southeast Asia.
Vietnam's Strategic Importance in the Semiconductor Industry
According to CIEM economists, Samsung's investment will position Vietnam as one of four countries, alongside South Korea, China, and the US, producing semiconductors for the world’s largest memory chip maker. The choice of Vietnam over more developed locations underscores the growing importance of this Southeast Asian country in the global semiconductor supply chain.
Vietnam's Historical Participation in the Semiconductor Industry
Vietnam is not a new participant in the semiconductor industry. Since 1979, Vietnam has had its first semiconductor factory, engaged in the production, research, and development of semiconductor materials and components for export to Eastern European countries.
Government Policies Supporting High-Tech Projects
Vietnam’s technology and industrial development policy always prioritizes high-tech projects, offering incentives such as corporate income tax reduction, sales tax exemption, and land rent exemption and reduction.
Advantages of Vietnam's Human Resources
An advantage Vietnam holds over neighboring countries is its human resources and young technical talents at relatively lower costs. Over 40% of Vietnam’s college and university graduates major in science and engineering, placing Vietnam among the top 10 countries with the most engineering graduates.
Vietnam's Economic Advantages and Trade Agreements
Vietnam is proud to be one of the world’s leading open economies, with 15 free trade agreements (FTAs) with other countries, an improving business environment, and a relatively stable government with clear socio-economic development plans. These factors collectively enhance Vietnam's potential to grow into a significant player in the global semiconductor industry.
