At the regular monthly press conference held this afternoon (May 4th), the press raised the issue of recent visits and collaborations between Vietnam and several large foreign technology corporations. The question was posed: What are the prospects for cooperation with these corporations, and what are Vietnam’s strengths and weaknesses in attracting foreign investment in the fields of semiconductors and chip technology?
Mr. Do Thanh Trung, Deputy Minister of Planning and Investment, clarified that attracting investment from major technology corporations is one of the three key breakthroughs identified in the Party’s resolutions since the 13th term. Vietnam has been diligently working to promote and attract foreign investment, especially in the technology and electronics sectors, including semiconductors.
Deputy Minister of Planning and Investment, Mr. Do Thanh Trung, provides information on attracting foreign technology corporations at the regular monthly press conference in April 2024. (Photo: VGP)
Three Crucial Factors in Attracting Foreign Investment
According to Deputy Minister Do Thanh Trung, foreign corporations’ and businesses’ investment decisions are influenced by numerous factors, including three main ones:
First, objective factors encompass geopolitical and economic conditions on a global, regional, and domestic scale, investment trends and shifts in global supply chains, and security considerations.
Second, subjective factors depend on the investors’ and businesses’ investment strategies, development goals, assessments of suitability regarding locations and regions, and available resources for implementation…
Third, factors related to Vietnam’s readiness to attract major global technology corporations, encompassing institutional frameworks, infrastructure, and human resources.
“Among these factors, we need to focus on Vietnam’s readiness,” emphasized Deputy Minister Do Thanh Trung.
Attractive Investment Incentives
Regarding institutional frameworks, the Deputy Minister asserted that Vietnam is continually refining its legal system, policies, and mechanisms to enhance the investment and business environment. Notably, the country offers generous investment incentives for technology companies, including those in the semiconductor industry. Projects in the semiconductor sector, categorized as high-tech, are eligible for the most favorable treatment within the framework of Vietnamese law.
Vietnam is considered an attractive destination for foreign investors. (Illustrative image)
In terms of infrastructure, Vietnam ensures the availability of comprehensive transportation infrastructure, including roads, waterways, and aviation, as well as production-related infrastructure such as electricity. Most recently, the Prime Minister approved the Power Development Plan VIII, prioritizing stable power supply for investment projects and embracing sustainable energy development, as informed by Deputy Minister Do Thanh Trung.
Additionally, Vietnam is focused on establishing technology parks and, notably, the National Innovation Center, to offer superior conditions and institutional advantages for foreign corporations investing and operating in the country.
Emphasizing human resources, the Deputy Minister highlighted Vietnam’s abundant technical and technological workforce, well-suited for the semiconductor industry. Moreover, the country boasts capable training and research institutions and reputable universities…
“In alignment with the government’s directives, the Ministry of Planning and Investment is formulating a proposal to develop a talent pool for the semiconductor industry, aiming to provide 50,000 high-quality professionals by 2030,” revealed Deputy Minister Do Thanh Trung.
Vietnam’s geographical advantages and the government’s strong commitment to fostering the semiconductor industry are key attractions for foreign investors, particularly those from the United States. The country is formulating a strategy for the development of the semiconductor industry and offering maximum support to foreign investors in this sector.
In practice, Vietnam has been successful in attracting an increasing number of prominent technology corporations. In the semiconductor industry, leading companies from Japan, South Korea, Taiwan, and especially the United States, have established concrete investments and collaborations in Vietnam. Notable examples include Intel and Amkor in packaging and testing, Marvell, Qorvo, and Qualcomm in design, and Synopsys and Cadence in chip design tool provision…
Recently, NVIDIA’s leadership has repeatedly visited Vietnam and pledged cooperation in artificial intelligence (AI) and semiconductors. This includes plans to establish supercomputing centers in Vietnam, provide AI and semiconductor training, and foster an ecosystem for AI research, development, and entrepreneurship.
