Việt Nam's semiconductor industry poised to bolster industrial real estate: experts

Jun 5th at 13:32
05-06-2024 13:32:44+07:00

Việt Nam's semiconductor industry poised to bolster industrial real estate: experts

The growth of Việt Nam’s semiconductor industry will facilitate the development of the industrial real estate sector, and Việt Nam needs to focus more on creating favourable conditions for investors, experts said.

A Samsung research and development centre in Hà Nội. Việt Nam is becoming a top destination for semiconductor investors. — Photo baotintuc.vn

According to Thomas Rooney, Senior Manager of Industrial Services at Savills Vietnam, Việt Nam is becoming a top destination for semiconductor investors.

Việt Nam has a favourable location in Southeast Asia, a large supply of necessary rare-earth elements for semiconductor chip production, and a stable political environment. It is also actively pushing for the development of the semiconductor industry with favourable policies.

According to other Savills Việt Nam experts, while customers renting industrial properties in the South are usually rubber, plastic, foodstuff and beverage businesses, more computer and electronics firms do so in the North.

As the wave of semiconductor investment grows, it will also facilitate the development of industrial real estate in the North.

Rooney noted that rising investment in semiconductor manufacturing was leading to a rise in demand for factories and industrial parks that satisfy the infrastructure requirements of the industry, including a stable power source, high internet speed and effective water treatment systems.

Upgrading the quality of these factories to attract investors was crucial, he said.

Việt Nam’s semiconductor industry has a lot of growth potential. It has attracted many top companies in semiconductors over the years, including Samsung, Qualcomm, Infineon and Amkor, with factories and factory expansion projects worth billions of dollars, according to experts.

For example, in 2022 Samsung opened its largest research and development centre in Southeast Asia in Hà Nội.

The country’s semiconductor industry is expected to reach over US$6.16 billion by the end of 2024, helping it become one of the world’s most important production hubs for semiconductor companies worldwide.

Rooney said that the Government and businesses needed to work together to improve the investment climate, infrastructure and manpower to create suitable conditions for the development of the semiconductor industry and industrial real estate.

He said that Việt Nam’s current infrastructure was still underdeveloped, especially its power transmission lines during peak months and power supply systems.

"The semiconductor industry requires a great deal of power, so Việt Nam needs to speed up its large-scale energy infrastructure projects," he said.

He also noted that Việt Nam was lacking highly skilled engineers for the semiconductor industry, and it needed to tackle this challenge to attract more investment from international technology companies.

Việt Nam’s electricity development plan for 2021 – 2030 prioritises stable supply of power for investment projects and targets sustainable energy development. The country is also developing high-tech industrial parks, such as the Việt Nam National Innovation Centre in Hà Nội, in order to create favourable conditions for foreign investors.

The Ministry of Planning and Investment has also been instructed to work with the Ministry of Information and Communication, the Ministry of Education and Training, and other relevant agencies to build a programme to develop manpower for the semiconductor industry, which aims to train 50,000 qualified workers by 2030.

The semiconductor industry supplies important components for the production of modern electronic devices, such as microprocessors and data storage devices.

According to the US Semiconductor Industry Association, the global semiconductor market is expected to reach US$600 billion by 2025, up 14 per cent from 2023, thanks to the increasing demand for electronic devices. 

Bizhub





NEWS SAME CATEGORY

Funding the Infrastructure development for Tân Phước 1 Industrial park in Tiền Giang

Deputy Prime Minister Lê Minh Khái has signed Decision No. 471/QĐ-TTg regarding the investment policy for the infrastructure of a major industrial park in Tiền...

Construction ministry urges new credit package for low-income home buyers

The Ministry of Construction has urged the State Bank of Việt Nam to study a new credit package for low-income home buyers with preferential interest rate 3-5 per...

Future look of surroundings of Ho Chi Minh City’s iconic Ben Thanh Market

A nearly-46,000-square-meter area surrounding the iconic Ben Thanh Market in Ho Chi Minh City will get a VND157-billion (US$6.2 million) makeover, with more green...

Hà Nội urged to begin construction of at least one social housing project by October

Chairman of Hà Nội People’s Committee Trần Sỹ Thanh has asked relevant departments to start building at least one social housing project by the beginning of October.

Proposal approved to pilot commercial housing projects using land use rights

The Government has approved the Ministry of Natural Resources and Environment (MONRE)'s proposal to develop a National Assembly Resolution allowing pilot commercial...

Real estate to benefit from FDI, revisions to Land Law

The sluggish property market is expected to benefit from a surge in foreign direct investment and amendments to the Land Law, experts told a forum in HCM City on...

Vietnamese Gov't to pilot rezoning for commercial housing

The initiative aims to facilitate the development of housing, given the scarcity of land available for commercial housing projects.

FDI in property soars by 70%

Foreign direct investment (FDI) in the property sector has jumped by 70 per cent year-on-year to over US$1.98 billion.

​Vietnam’s Ba Ria - Vung Tau ceases work on 23-story hotel, part of beachside aquarium project

The People’s Committee of Ba Ria - Vung Tau Province in southern Vietnam has allowed the developer of a beachside aquarium complex project to continue work on land...

Sunnier days anticipated through updated land laws

The proposal to implement the revised Land Law from July instead of next year is expected to bring confidence to the real estate sector.

Real estate stocks

Construction stocks


MOST READ


Back To Top