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Vietnam Introduces Incentive Policies to Attract Global Semiconductor Companies


Vietnam is becoming a global semiconductor manufacturing hub. However, attracting FDI in this industry is highly competitive. To seize the opportunities, Vietnam is rolling out strategies to improve the investment environment, develop infrastructure, train human resources, and implement attractive incentive policies.

Vietnam faces a golden opportunity to develop its semiconductor industry

The Global Semiconductor Industry Context

The semiconductor industry plays a crucial role in the development of science, technology, and the global economy. It is likened to the “heart” of the digital economy, serving as the foundation for the development of other industries such as electronics, telecommunications, automotive, and aerospace.

The growth of the semiconductor industry also contributes significantly to global economic growth. Industry experts predict global semiconductor market revenue will reach $1 trillion by 2030.

The global semiconductor market is massive, worth trillions of dollars, and has immense development potential. This industry generates high profits and attracts strong investment from major corporations. As a result, the semiconductor industry creates many jobs and drives the socioeconomic development of countries.

The semiconductor industry is a core driver of the global economy, bringing many benefits to countries participating in the semiconductor supply chain. Therefore, attracting investment into the semiconductor industry is an important strategy for many countries, including Vietnam.

The role of Vietnamese semiconductor industry in the global supply chain

Vietnam is emerging as a strategic destination in the global semiconductor supply chain due to its competitive advantages compared to other countries. These competitive advantages include:

  • Stable political foundation and favorable macroeconomic environment.
  • Abundant young, eager-to-learn, and technology-adaptive human resources.
  • Competitive manufacturing and labor costs compared to other regional countries.
  • Attractive investment incentives and policies to encourage foreign investment.
  • The formation and development of supporting industrial clusters.
Vietnam plays an important role in the global semiconductor supply chain

Vietnam is increasingly attracting investment from global semiconductor companies, including Intel, which has established a packaging and testing facility. Amkor’s factory in Bac Ninh, with an investment of $1.6 billion, was inaugurated in October 2023. Jensen Huang, CEO of Nvidia, declared that Vietnam is the company’s second home.

With its competitive advantages and preferential policies, Vietnam is gradually affirming its important position in the global semiconductor supply chain. The Vietnamese semiconductor industry is expected to be a driving force in promoting economic growth and attracting foreign investment into the domestic market in the coming time.

Preferential policies of Vietnam to attract foreign investment in the semiconductor industry

Investment in industrial parks and export processing zones dedicated to Vietnamese semiconductor industry

Vietnam maintains political stability and a good national security environment, creating favorable conditions for long-term business activities. The country’s macroeconomic policies are always stable, with inflation well under control, building investor confidence. In addition, the government is continuously investing in infrastructure improvements, with a convenient transportation system that facilitates easier goods circulation.

Support for training and human resource development

Vietnam has a relatively young population, with the majority of people of learning and working age, who are extremely dynamic and eager to learn, quickly adapting to new technologies. As a result, the current and future labor force in the country is abundant, well-trained, and readily able to meet the recruitment needs of semiconductor companies.

To address the talent shortage, in late January, Vietnamese Deputy Minister of Information and Communications Nguyen Huy Dung selected five universities to train the necessary talent for Vietnamese semiconductor industry, including Hanoi University, Vietnam National University Ho Chi Minh City, Hanoi University of Technology, FPT University, and Da Nang University. Among them, the FPT Group has partnered with the National Innovation Center and experts from the US to establish the Vietnam Semiconductor Education Center (VSHE) to train 50,000 engineers by 2030.

Additionally, Vietnam’s labor costs are considered quite low and can become a strength to compete with other countries in the region, helping to reduce production costs for businesses.

The development of semiconductor human resources is increasingly being emphasized

Improving the legal environment and institutions

The government has also decided to increase support for the Vietnamese semiconductor industry and announce a plan to implement a series of tax incentives as well as establish an investment fund in mid-2024 to promote this industry.

According to many media sources, including Investor Magazine, Nikkei Asia, and the official websites of the Vietnamese government, the Vietnamese National Assembly has passed a resolution allowing the government to establish an investment fund for high-tech companies, including semiconductor companies.

Achievements and prospects for attracting semiconductor investment in Vietnam in the future

Vietnam has achieved many successes in attracting investment in the semiconductor industry in recent years, confirming its potential position in the global semiconductor supply chain. Some notable highlights include:

Major investment projects of leading global semiconductor conglomerates

The Vietnamese semiconductor industry is attracting strong attention from the world’s leading technology conglomerates with a series of major investment projects being implemented recently. On October 11, 2023, the manufacturing, assembly, and testing facility for semiconductor materials and equipment of Amkor Technology Vietnam Co., Ltd. (ATV), was inaugurated in Yen Phong II-C Industrial Park, Bac Ninh province. This is the largest semiconductor factory in Vietnam, with a total investment of $1.6 billion divided into 3 phases.

In addition, industry giants like Qualcomm, Nvidia, and Samsung are also taking new steps to invest in Vietnam to expand their current manufacturing and chip design markets.

Trends and development potential in the future

With a solid foundation and great potential, the Vietnamese semiconductor industry is predicted to boom in the future, strongly attracting foreign investment flows. It can be seen that our country possesses many advantages to attract major semiconductor players to invest, such as abundant human resources, low production costs, a stable investment environment, and attractive incentive policies.

The Vietnamese government is committed to prioritizing the development of the semiconductor industry by issuing incentive policies, investing in infrastructure, and training human resources. The implementation of many specific programs and projects such as the National Semiconductor Industry Development Program, the Semiconductor Industry Development Fund, and the Semiconductor Specialized High-Tech promises to provide strong momentum for the industry’s development.

The Vietnamese semiconductor industry is considered a key industry in the future


The Vietnamese semiconductor industry faces a great opportunity to break through and become an attractive destination for future investors. The close cooperation between the government, enterprises, and international organizations plays a key role in placing Vietnam in a high position in the global semiconductor supply chain. Do not miss the articles about the Vietnamese semiconductor industry and the latest news about the industry worldwide on FPT Semiconductor!