Vietnam’s Growing Role in the Global Semiconductor Industry
On July 2, during the “Vietnam’s Semiconductor Industry – Investment, Development & Collaboration Opportunities” event, Daniël Stork, the Consul General of the Netherlands in Ho Chi Minh City, highlighted the crucial role of semiconductors in today’s world. He noted that the recent pandemic and rising geopolitical tensions have revealed weaknesses in global supply chains, elevating semiconductors from a specialized industry to a key issue of economic security.
The semiconductor market is booming, with its value surpassing $600 billion in 2024 and expected to reach $1 trillion by 2030. Despite this growth, not all regions benefit equally, and Vietnam is emerging as a promising player on the scene. According to Stork, the country enjoys a stable political and economic environment, a young and skilled workforce, and a strong electronics manufacturing base. Major companies like Amkor, Intel, and Samsung already have substantial operations in Vietnam, focusing on packaging, testing, and assembly. The introduction of Vietnam’s National Semiconductor Development Strategy in 2024 reflects its ambition to advance into integrated circuit design and fabrication.
Nguyen Que An from PwC Tax and Advisory predicts that Vietnam’s semiconductor industry will grow annually by 9%, reaching approximately $31.39 billion by 2029 due to strong government support, foreign investments, and international collaborations.
Vietnam offers a favorable tax environment for investors in this field. From October 2025, there will be corporate tax breaks and exemptions on imports for goods used in scientific projects. Investors in high-tech zones will also enjoy long land leases and reduced rental fees.
To facilitate semiconductor manufacturing, Vietnam has established several dedicated zones, including the Saigon Hi-Tech Park in Ho Chi Minh City, Hoa Lac Hi-Tech Park in Hanoi, and Danang Hi-Tech Park.
Challenges Ahead
While the prospects are bright, speakers at the event addressed significant challenges facing Vietnam’s semiconductor sector. Michael Lee from Foxconn Technology Group discussed how Vietnam is shifting from relying solely on geographical advantages to building a technological base. He identified four critical challenges: power supply, skilled talent, technology, and supply chain issues. Lee emphasized the need for an integrated innovation ecosystem to tackle these hurdles.
Stork recommended several strategies to support Vietnam’s semiconductor goals, such as investing in talent, forming reliable international partnerships, and supporting small and medium enterprises. He stressed that the foundation of a successful semiconductor industry lies in having skilled people, such as engineers and researchers, who drive innovation.
He also pointed out that no single nation can succeed in this field alone. By forging international partnerships, Vietnam can enhance its capabilities and access advanced knowledge.
Finally, Stork noted the significance of small and medium enterprises in the semiconductor value chain, which includes many specialized areas beyond just the big companies. He mentioned that about 90% of the value of chipmaking machines made in the Netherlands comes from its supplier network, suggesting Vietnam should also nurture these local markets.
Dutch companies, including BESI and NXP, are expanding operations in Vietnam, further solidifying the country’s role in the global semiconductor industry. Stork concluded that the Netherlands is prepared to support Vietnam’s ambitions through knowledge sharing and investment.
Lee remained optimistic, forecasting that Vietnam is on a path to become a major semiconductor exporter by 2030. The country’s advancements in packaging and chip design could soon position it as a significant player in Southeast Asia and beyond.
