According to Vietnam-Briefing, Samsung’s choice of Vietnam for semiconductor production speaks to Vietnam’s potential as a new manufacturing hub.
Recently, many multinational corporations from Intel and Samsung have made moves to expand investment in research and production of chips as well as semiconductors in Vietnam.
Political stability, favorable investment environment and consistency in policies have helped Vietnam become more involved in global value chains. That is also the opinion of many experts and international press recently.
Many international newspapers have recently reported that the US chip giant Synopsys will train engineers to design circuits and support the establishment of a semiconductor chip design center in Vietnam. In the context of the ongoing US-China technology race, many high-tech enterprises are redirecting investment and training to Vietnam as a strategy to rebalance their operations.
Many multinational corporations from Intel and Samsung have made moves to expand investment in research and production of chips as well as semiconductors in Vietnam. (Illustration image – Photo: Investment Newspaper)
“Vietnam’s main advantage is its favorable demographic structure, with relatively low labor costs. Vietnam also boasts a government that is very open and facilitates foreign trade and investment, an ever-growing business ecosystem, ready to learn and improve. The extensive Free Trade Agreement network also makes it easier for investors to access markets in other countries,” said Mr. Fillippo Botorletti, Director of Dezan Shira Vietnam Office.
According to Vietnam-Briefing, Samsung’s choice of Vietnam for semiconductor production speaks to Vietnam’s potential as an emerging manufacturing hub. These investments will also be the driving force contributing to the development of many local businesses, thereby enhancing the investment attractiveness of Vietnam.
“The fact that Vietnam appears in the consideration options of large technology corporations is a great thing. As a result, exports from the FDI sector will be further pushed up, not just stopping at the current impressive numbers,” said Philipp Rosler, former Executive Director of the World Economic Forum.
Despite the positive outlook, experts also recommend that Vietnam needs to strengthen the domestic supporting industry, as well as expand the policy to attract mid-range enterprises in the semiconductor supply chain.
“I think Vietnam has done quite well, Vietnam has become the second largest FDI attraction in ASEAN, after Singapore, but there are still some bottlenecks. For example, further streamlining administrative procedures, increasing transparency and continuing to improve the legal framework, it is also necessary to improve the qualifications of local workers because that is one of the main bottlenecks of Vietnam in many fields, not just the semiconductor industry”, said Mr. Fillippo Botorletti, Director of Dezan Shira Vietnam Office.
According to many experts, Vietnam needs a medium and long-term strategy to move towards self-reliance in semiconductor chip technology, attract a large number of technology corporations to increase direct investment, establish or expand research and production center of technological equipment right in Vietnam.