Upgraded Vietnam-US ties to open FDI doors wider for semiconductor industry: Intel

Intel has operated in HCMC for 13 years, and as of 2020, your factory had produced 2 billion units. Can you give us an update of the manufacturing situation and your company’s contributions to the city?

As of now, we’ve shipped over 3.5 billion products, cumulatively. It’s worth noting that our 2 billionth unit rolled off the line in early 2020 - which highlights the production acceleration we are seeing at present. The first 2 billion took a little over a decade, the next billion took a little over a year. Starting from the chipset factory in 2010, Intel Vietnam today has a diverse portfolio including the newest Meteor Lake products, accounting for over 50% of the assembly and testing output.

Since we came to Vietnam, we have generated around $78.6 billion in export value - with $11.5 billion in 2022 alone and $4.1 billion in the first half of 2023. This makes up about 52% of the HCMC Hi-Tech Park’s total exports, 16% of the nation’s electronic/components export, and about 21% of the HCMC’s total exports. Currently approximately 6,500 jobs have been created.

What is your assessment of the current investment climate in Vietnam. How has it changed since Intel made its debut here?

Vietnam’s stable socio-political environment, increasingly liberalized trade and investment policies, as well as the availability of a young and talented workforce have made it easier for Intel to continue investing in Vietnam.

All these aspects help drive Vietnam’s overall business and technology production potential. Intel’s manufacturing presence here has clearly put Vietnam on the hi-tech map and shown that the country has all the necessary infrastructure and policies in place to support advanced manufacturing operations of any kind.

What are the main factors that have sustained Intel in Vietnam for the past 13 years?

The three factors that have kept us in Vietnam are: stable socio-political environment; a young and well-educated workforce; and excellent location, essentially in the center of Asia, with direct access to key trade lanes and shipping channels.

It’s been said Vietnam can become a regional chip manufacturing hub. What do you think?

Vietnam has come a long way. Not just Intel, but other multinational companies are also present here. Over time, the number of foreign companies will continue to grow. At this point, the Vietnamese government needs to address the following issues: government incentives and streamlining administrative procedures. The current model that companies are aiming for requires resilience and geographical balance. This model needs to be placed in the right location at the right time with the right focus.

Today, every country, indeed every corner of the world, requires semiconductor chips. Therefore, each nation should specialize in a specific area to maximize its strengths and create a competitive advantage.

Since the competition is intense, what does Vietnam need to do to increase its attractiveness to high-tech businesses?

As a result of the global corporate income minimum tax (GMT), many countries are providing cash grants (via CHIPS Act) to attract and retain foreign investors to invest in domestic semiconductor manufacturing, research & design. Vietnam should reconsider amending its incentive laws and offer cash grants in order to maintain its competitiveness and grow the semiconductor and technology industry.

Currently, countries in the U.S., Europe, Japan and India are renewing their incentive programs for businesses, which are widely shared. Modernizing business support and incentive programs will be an essential action for the Vietnamese government, in addition to optimizing labor costs and political stability.

Secondly, when we first entered the Vietnamese market, we were provided with a one-stop mechanism for all administrative procedures, they were smoothly streamlined, allowing us to swiftly execute our business plans. However, over time, things have gradually changed, presenting more challenges. Presently, approval procedures are divided among various responsible departments. We have engaged in numerous discussions with the government and hope to receive additional support to further streamline processes and administrative procedures. This is not only to maintain the number of existing FDI businesses but also to support future FDI enterprises.

With the recent historical milestone of Vietnam-U.S. becoming comprehensive strategic partners, Vietnam will have more opportunities to attract FDI into the semiconductor industry, especially in HCMC, the nation’s economic hub. I hope the city's leadership will adopt the one-stop shop mechanism in making decisions to expedite direct interactions with investors for sustainable growth.

One hears a lot about green development these days. What has Intel done regarding this and what are your future plans?

Addressing the impacts of climate change is not something that a single company can tackle on its own. As one of the world’s leading semiconductor designing and manufacturing companies, we are uniquely positioned to drive sustainable solutions and address climate change, both through our own actions and by empowering the technology ecosystem.

Our commitment to corporate responsibility and sustainability - built on a strong foundation of transparency, governance, and ethics - creates significant value for society, the communities in which we operate, our investors, our customers and other stakeholders. Sustainable business practices help mitigate risks, reduce costs, build brand value, and identify new market opportunities. Intel continuously looks for ways to improve its business and develop more sustainable technology solutions, as well as to collaborate with other organizations to advance best worldwide practices in corporate responsibility.

Intel Products Vietnam has made efforts to minimize environmental impacts and target sustainable development. Intel's factory in Vietnam has saved more than 40 million KWH of electricity; used 2.68 million KWH of green electricity; reduced net emissions by more than 13,500 tons; and recycled and treated 100% of hazardous waste; recycled 95% of other waste; and saved and recycled 1 million m3 of water.