Vietnam has asked the U.S. government for support to develop its fledgling semiconductor sector and other basic industries as the country has become one of the fastest-growing semiconductor markets in the world.
At a meeting with U.S. Under Secretary of State for Economic Growth, Energy, and the Environment Jose Fernandez on November 15, Minister of Industry and Trade Nguyen Hong Dien proposed the two countries set up a joint working group to enhance cooperation in those fields in Vietnam.
The two officials met on the sidelines of APEC Economic Leaders' Week in San Francisco.
The working group would focus on policy guidance, workforce training, and facilitation of business connections in the two countries, Dien clarified.
For his part, Fernandez agreed with Dien’s proposal and suggested conducting more in-depth discussions on matters of interest to U.S. businesses, with a focus on energy and industry.
Semiconductor cooperation was a focal point during leaders’ talks during President Biden’s visit to Hanoi in September. The U.S. affirmed its commitment to increasing support for Vietnam in the training and development of a high-tech workforce, said the joint statement.
Acknowledging Vietnam's tremendous potential as a major player in the semiconductor industry, Biden and Vietnam’s Communist Party chief pledged to support the rapid development of Vietnam's semiconductor ecosystem and to work together energetically to improve Vietnam's position in the global semiconductor supply chain.
Toward this end, the U.S. and Vietnam announced the launch of semiconductor workforce development initiatives – supported by initial seed funding of $2 million from the U.S. government, in conjunction with future Vietnamese government and private sector support.
At a high-tech business forum summit on September 11, the Vietnamese government suggested American tech giants such as Intel, Amkor, and Marvell develop a chip ecosystem and join hands with Vietnamese partners in research & development and design of semiconductors.
During a U.S. tour on September 17-23, Prime Minister Pham Minh Chinh met with executives of American semiconductor corporations and witnessed the signing of a series of agreements between them and Vietnamese agencies and businesses.
To tackle the manpower shortage in the semiconductor industry, the government has mapped out a plan to train between 50,000 and 100,000 engineers by 2030.
According to market research company Technavio, Vietnam’s semiconductor market may expand $15 billion in the 2021-2025 period, or 6.5% per year.