Việt Nam’s chip production to benefit from Trump’s policies
Việt Nam’s chip production to benefit from Trump’s policies
Donald Trump wants to reduce computer chip sales to China, a move that a tech expert says poses more opportunities than threats to Việt Nam.
Prime Minister Phạm Minh Chính visits the semiconductor production line at Hana Micron Vina Co., Ltd. in Vân Trung Industrial Park, Bắc Giang Province. Việt Nam has a long-term strategy to develop the semiconductor industry until 2030 and 2050. — VNA/VNS Photo Dương Giang |
Việt Nam’s semiconductor production cooperation with the US will not be affected by Trump’s potential restriction of computer chip exports, according to Võ Xuân Hoài, deputy director of the National Innovation Centre.
US President Donald Trump’s administration is considering restricting artificial intelligence (AI) chip sales to China, Reuters reported.
Trump met with Jensen Huang, chief executive officer of the US leading chip producer NVIDIA, to discuss the matter at the end of January, according to NHK. Huang told the Japanese outlet that the discussion focused on “the importance of strengthening US technology and AI leadership”.
The US President last week signed three executive orders, increasing tariffs on imports from Canada, Mexico and China, with more to be announced for other countries.
While these drastic moves raise concerns as they may disrupt the global supply chain, Võ Xuân Hoài, deputy director of the National Innovation Centre (under the Ministry of Planning and Investment) said they wouldn't affect Việt Nam’s technology cooperation with the US.
“The US wants to increase domestic production of advanced, high-tech chips, but will still outsource the production of other types to its partners, including Việt Nam,” he told Vietnamnet.vn.
“Cooperation between Việt Nam and the US – including semiconductor manufacturing and other innovative projects – won’t be affected, or at least hasn’t been.”
Prime Minister Phạm Minh Chính visits the semiconductor production line at Hana Micron Vina Co., Ltd. in Vân Trung Industrial Park, Bắc Giang Province. Việt Nam has a long-term strategy to develop the semiconductor industry until 2030 and 2050. — VNA/VNS Photo Dương Giang |
The restructuring of the American chip supply chain might help Việt Nam attract more foreign investors and encourage domestic businesses to take part more in semiconductor production, Hoài added.
It would increase their capabilities in semiconductor packaging, assembly and testing, which are the stages that are not under the US's strict control.
"Our Prime Minister has warned of a possible global trade war that may happen this year. It is a challenge, but also poses a lot of opportunities," he said.
"The situation will motivate Việt Nam to develop private businesses and encourage domestic ones to take part in the global supply chain."
One of the effects of the trade tension is that production will shift from China to other countries, including Việt Nam which has been considered an attractive destination for foreign investors, according to Hoài.
Việt Nam should take advantage of big tech companies' need to diversify their supply chains, and create favourable conditions for domestic companies to integrate further into the supply chains of foreign-invested companies in the country, he said.
The country has developed a well-structured national strategy for building a semiconductor industry until 2030 and 2050, with clear objectives.
According to Hoài, the US needs skilled workers for this industry and highly values Vietnamese engineers. The domestic semiconductor industry also has lots of potential and is attracting several overseas startups and experts to return.
In the next five years, Việt Nam will be more than capable of expanding production and providing semiconductors for artificial intelligence development and other high-tech innovations, without being hindered by US policies.
"We've got plans to build small-scale semiconductor factories to serve the long-term development of the industry, which is an important step towards increasing domestic capabilities and integrating further into the global chip supply chain."
