Deputy Minister of Planning and Investment Do Thanh Trung informed the press about the situation of attracting foreign technology corporations – Photo: VGP/Tuan Dung
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Focus on factors related to Vietnam’s readiness
On the afternoon of May 4th, speaking at a regular Government press conference, Deputy Minister of Planning and Investment Do Thanh Trung said that attracting investment, especially in the technology, semiconductor, and electronics sectors, is one of the three breakthroughs that the Party’s resolution identified right from the beginning of the 13th National Congress. Vietnam has made great efforts to mobilize and attract foreign investment, particularly in the technology and semiconductor sectors.
In fact, foreign enterprises currently invest not only in Vietnam but also in many other countries, so it is normal for them to invest in Vietnam or elsewhere. The investment of foreign corporations and enterprises depends on many factors, including three main ones.
Firstly, objective factors include the geopolitical and economic situation in the world, the region, and Vietnam; investment trends and shifts in the global supply chain; and security issues.
Secondly, subjective factors from the perspective of enterprises and investors depend on investment strategies, investment and development goals, assessments of the suitability of each locality and region, and available resources, among others.
Thirdly, factors related to Vietnam’s readiness to attract major technology corporations worldwide, including institutions, infrastructure, and human resources.
“Of the three factors, we need to focus on the factors related to Vietnam’s readiness,” said Mr. Trung.
Vietnam has many advantages
According to the Deputy Minister, Vietnam currently has many advantages in attracting foreign investment capital. In terms of institutions, Vietnam is constantly improving its legal system, mechanisms, and policies to enhance the investment and business environment.
In particular, Vietnam has established and is implementing many attractive investment incentive mechanisms for technology companies and corporations, including in the electronics and semiconductor sectors. Semiconductor investment projects in the high-tech sector are eligible for the highest incentives permitted under Vietnamese law.
Regarding infrastructure, Vietnam ensures infrastructure, including road, waterway, and air transportation, as well as infrastructure related to production in these sectors, such as electricity, which are all invested synchronously. Most recently, the Prime Minister has approved Power Plan VIII, ensuring priority provision of stable electricity for investment projects and aiming for sustainable energy development.
In parallel, Vietnam focuses on developing high-tech parks, especially the National Innovation Center, to create a superior institutional environment and provide the best conditions for foreign corporations to invest and produce in Vietnam.
In terms of human resources, Vietnam has an abundant workforce in the technical and technological fields relevant to the semiconductor industry. In addition, there are capable training and research institutions and prestigious universities, such as Viettel, VNPT, FPT, and CMC.
In accordance with the tasks assigned by the Government, the Ministry of Planning and Investment is developing a Human Resource Development Plan for the Semiconductor Industry to ensure the provision of 50,000 high-quality personnel for the semiconductor industry by 2030.
Vietnam has a favorable geographic location for foreign investors, and the Vietnamese Government is highly committed to pursuing and developing the semiconductor and chip industry. Vietnam is developing a Strategy for Developing the Semiconductor Industry and providing maximum support for foreign investors, particularly from the United States, to invest in the semiconductor supply chain in Vietnam.
In fact, Vietnam has been attracting more and more major technology corporations. In the semiconductor industry, many large corporations from Japan, South Korea, Taiwan, and especially the United States are investing and cooperating in specific projects in Vietnam, such as: Intel and Amkor in packaging and testing; Marvell, Qorvo, and Qualcomm in design; and Synopsys and Cadence in providing chip design tools.
Recently, executives from NVIDIA have visited Vietnam and pledged to cooperate in AI and semiconductors. Accordingly, they will enhance cooperation, including establishing supercomputing centers in Vietnam, training AI and semiconductor industry personnel, and developing an ecosystem for AI research, development, and start-ups.
