Abundant rare earth resource makes Vietnam stand out in global semiconductor industry: Savills
One key factor that makes Vietnam stand out in the global semiconductor industry is its abundant rare earth resource that ranks second in the world after China, according to an expert of property consultancy Savills.

An industrial park in Vietnam. Photo courtesy of Doanh nghiep & Thi truong (Enterprises & Markets) magazine.
This is a vital raw material for electronics and semiconductor manufacturing, offering significant opportunities for the sustainable growth of the industries in Vietnam, said Thomas Rooney, associate director of industrial services at Savills Hanoi.
According to Rooney, the semiconductor industry, with a revenue of $18.2 billion in 2024, is a key sector receiving significant government attention, driving industrial real estate development.
Notably, the government is implementing numerous favourable policies to develop the semiconductor industry in Vietnam. The quality of the workforce in this sector is continuously improving.
According to the Prime Minister's Decision No. 1017/QD-TTG, which approves the program “Developing human resources for the semiconductor industry to 2030, with a vision to 2050”, the target is to train at least 50.000 graduates with a university degree or higher to meet the sector's development needs.
The National Assembly Standing Committee has also approved the establishment of a fund to support investments in high-tech projects with an aim to stabilize the investment environment, enhance competitiveness, and attract strategic investors.
Additionally, the government has approved the National Power Development Plan VIII, ensuring a stable electricity supply for investment projects and focusing on sustainable energy solutions. Local authorities and industrial zone management boards have committed to providing enough electricity and water to meet the needs of semiconductor businesses.
With these advantages, along with the government’s strategic direction and development efforts, Vietnam’s industrial real estate continues to attract interest from semiconductor investors, Rooney said.
Notably, ready-built factories and warehouses made by major players such as Frasers, Logos and IDEC in the northern province of Bac Ninh meet the strict requirements of the semiconductor industry, featuring modern infrastructure and fire safety systems. These projects are located near international airports, facilitating easy transport and trade for investors.
To accommodate the investment from both domestic and international companies, not only are new industrial parks being built with green models, but existing parks are also undergoing infrastructure upgrades, he added.
Rooney predicted that by 2025-2026, semiconductors will remain a hot topic. Vietnam should maximize its advantages while creating favourable conditions to attract more investors.
Expansion of high-tech manufacturing: Elavating industrial real estate
According to the Foreign Investment Agency, as of end-2024, the country had 42,002 active foreign direct investment (FDI) projects with a total registered capital of nearly $502.8 billion, of which approximately $322.5 billion, or 64.1% of the total, was disbursed.

Thomas Rooney, associate director of industrial services at Savills Hanoi. Photo courtesy of Savills.
Major projects in high-value-added sectors such as semiconductors, energy, and electronics manufacturing received new investments and capital expansions.
According to Rooney, Vietnam is emerging as a strategic destination for large tech corporations due to its advantageous location in the global supply chain. The wave of investments into high-tech projects and R&D centers boosts demand for infrastructure and ready-built factories and opens up potential growth for the industrial real estate market.
According to Savills Industrial Insider Report 2024, the national industrial land area exceeds 38,200 hectares across 203 operational industrial zones, reflecting a 5% increase year-on-year.
He said Vietnam benefits from its proximity to the Silicon Valley of China (Guangzhou-Shenzhen-Dongguan), making it a prime location for supply chain diversification strategies. This helps major companies reduce dependency on China (the China +1 strategy) and mitigate geopolitical risks.
Robust infrastructure and transportation policies continue to enhance Vietnam’s appeal to foreign investors. With 7% of GDP allocated to key projects like the North-South Expressway, Long Thanh International Airport, and deep-water ports such as Cai Mep in Ba Ria-Vung Tau, Vietnam can directly connect to Europe, the Americas, and Southeast Asia.
Moreover, Vietnam’s abundant workforce, policies supporting high-tech projects, and ongoing infrastructure improvements make the country an attractive destination for international investors, positioning it as a high-tech manufacturing hub, he noted.
The recent cooperation agreement between the Vietnamese government and Nvidia, a world leader in AI and semiconductors, marks a significant milestone and presents an opportunity for Vietnam to become Asia’s leading AI R&D center.
Nvidia’s upcoming establishment of an AI R&D center and an AI data center in Vietnam, coupled with the government’s human resource development strategy and support policies, promises to deliver higher added value, attract investment, and foster cutting-edge tech sectors, he said.
The AI R&D center and AI data center will stimulate demand for the development of high-tech zones, increase the value of industrial real estate and attract further capital from major tech investors. This will elevate industrial zones and expand opportunities for modern infrastructure development and supporting industries, he added.
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