Vietnam’s semiconductor leap: turning vision into global leadership

Vietnam’s semiconductor leap: turning vision into global leadership

The Vietnam Semiconductor Industry Exhibition 2025 (SemiExpo Vietnam 2025) opened on November 7, marking an important milestone in Vietnam’s journey towards high-tech integration and global innovation.

Deputy Minister of Finance Nguyen Duc Tam

As the world enters a fierce race for core technologies, Vietnam is gradually establishing its position on the global semiconductor map. With the coordinated efforts of the government, ministries, and domestic as well as international enterprises, Vietnam’s semiconductor industry is entering an unprecedented phase of growth, where national aspiration is steadily turning into concrete action.

Deputy Minister of Finance Nguyen Duc Tam said that Vietnam is now home to over 50 chip design companies with around 7,000 engineers, along with 15 enterprises and more than 10,000 technicians engaged in the packaging, testing, and manufacturing of semiconductor devices and materials.

Major global technology giants such as Samsung, Intel, Amkor, Foxconn, and Hana Micron continue to expand their operations in Vietnam, demonstrating the country’s cost efficiency, productivity, and product quality. Meanwhile, leading global tech corporations including NVIDIA, Qualcomm, Coherent, and Marvell have chosen Vietnam as a strategic hub for semiconductor research and development (R&D), manufacturing, and supply chain expansion.

A major milestone is the construction of Viettel’s first chip manufacturing plant, a key step in Vietnam’s journey towards mastering semiconductor production technology. “These achievements reflect the confidence of global investors and mark Vietnam’s strategic progress in ‘leapfrogging’ through knowledge, innovation, and international cooperation,” Tam emphasised.

"The Ministry of Finance pledges to stand alongside enterprises, promote public-private partnerships, and strengthen the “three-way linkage” model connecting the state, academia, and industry," he said. "The ministry will also selectively attract foreign direct investment (FDI) into high-value stages such as advanced chip design and packaging, driving Vietnam’s transformation into a strategic link in the global semiconductor supply chain."

Deputy Minister of Science and Technology Bui Hoang Phuong

Sharing this vision, Deputy Minister of Science and Technology Bui Hoang Phuong said, “The semiconductor industry is the foundation of the digital era. Vietnam has identified semiconductors as a strategic technology that plays a pivotal role in enhancing competitiveness, boosting economic growth, and asserting national standing.”

To date, Vietnam has attracted more than 170 foreign-invested projects in the semiconductor industry, with total registered capital of nearly $11.6 billion. The domestic semiconductor supply chain is primarily focused on two main stages: chip design and assembly/testing. Currently, there are 58 chip design enterprises, including 13 Vietnamese and 45 foreign companies, and eight packaging and testing projects, including those from Intel, Amkor, and Hana Micron.

In addition, Vietnam is now home to companies supplying semiconductor materials and equipment, such as Coherent and VDL, contributing to the gradual completion of the local value chain. The government is also implementing a project to build a small-scale, high-tech chip fabrication plant, expected to become operational by 2030, to serve research, design, and pilot production of “Make in Vietnam” chips.

In 2024, Vietnam issued the National Strategy for Semiconductor Industry Development, followed by the Law on the Digital Technology Industry, approved by the National Assembly in June. Together, these form the legal foundation for the growth of Vietnam’s semiconductor industry.

The law provides unprecedented investment incentives, including a 5 per cent corporate income tax rate for 37 years for projects investing from VND6 trillion ($240 million) in semiconductor production; six years of full tax exemption, followed by a 50 per cent tax reduction for 13 subsequent years; full exemption from land and water surface lease fees; five-year personal income tax exemption for high-quality technical personnel; and five-year work permits and visa exemptions for qualified foreign experts.

“These are highly specialised, preferential policies, exclusive to a few strategic industries,” Deputy Minister Phuong said.

The Ministry of Science and Technology is finalising decrees and circulars to guide the implementation of the law, which is set to take effect in January 2026.

Vietnam’s Semiconductor Industry Development Strategy identifies four key pillars: integrate semiconductor development with electronics and digital transformation, with AI and the Internet of Things (IoT) as the driving forces; prioritise human resource development, turning Vietnam into a global hub for semiconductor talent; leverage geopolitical advantages and strategic partnerships to position Vietnam as the “+1” destination in the global semiconductor supply chain diversification strategy; and concentrate resources and incentives for R&D and production of specialised semiconductor products that promote sustainable development in electronics, AI, IoT, and digital industries.

These pillars underscore Vietnam’s determination to seize the golden opportunity presented by the global semiconductor supply chain realignment.

Vietnam is widely recognised for its strong advantages, from favourable policies and geography to political stability and a young, STEM-skilled workforce. These factors make the country a rising star for investment and R&D in the semiconductor field.

“The establishment of R&D centres in Vietnam not only facilitates advanced technology transfer but also accelerates intellectual property creation and the development of high-value ‘Make in Vietnam’ products,” said Deputy Minister Phuong.

Indeed, global giants like NVIDIA, Qualcomm, Samsung, and Intel have already established major R&D centres in Vietnam, achieving remarkable results, evidence of the country’s growing attractiveness as an R&D and innovation hub in Asia.

Both deputy ministers agreed that SEMIExpo Vietnam 2025 is more than just a trade exhibition, it represents Vietnam’s spirit of innovation, global cooperation, and ambition to rise on the world technology stage.

“We believe that SEMIExpo 2025 will serve as an important catalyst, encouraging Vietnamese enterprises to continue innovating and helping the semiconductor ecosystem thrive, making Vietnam a strategic link in the global supply chain,” Deputy Minister Nguyen Duc Tam noted.

With open policies, exceptional incentives, and strong governmental commitment, Vietnam’s semiconductor industry stands on the threshold of a historic breakthrough. The nation is not merely an attractive investment destination, it is on its way to becoming a regional hub for semiconductor innovation, with the long-term vision of self-reliance in chip design, fabrication, and production. This journey embodies the intelligence, creativity, and resilience of Vietnam, marking the country’s firm move from aspiration to action, and its steady rise as a technological powerhouse in the global digital economy.

VIR