Vietnam has 174 FDI projects in semiconductor sector: minister

Vietnam is now hosting 174 foreign-invested projects in the semiconductor sector, with a total registered capital of nearly $11.6 billion, according to Minister of Planning and Investment Nguyen Chi Dung.

Semiconductor giants flock to Vietnam

Speaking at the inaugural meeting of the National Steering Committee for Semiconductor Industry Development on Saturday, Dung, who is also deputy head of the committee, highlighted Vietnam's proactive efforts to attract FDI in this high-tech sector.

The Ministry of Planning and Investment (MPI) has engaged with some of the world's leading tech giants, including Qualcomm, Google, Meta, LAM Research, Qorvo, and AlChip.

These companies have detailed plans to shift their supply chains to Vietnam, establish research centers, and expand their investments here, the minister said.

Among the most significant developments is the collaboration with technology giant Nvidia.

Minister Dung revealed that Prime Minister Pham Minh Chinh has tasked the MPI with working closely with relevant agencies to form two dedicated teams: one to implement the cooperation and another to negotiate directly with Nvidia.

These efforts have already yielded impressive results. Vietnam has secured a landmark partnership with Nvidia, leading to the signing of an agreement on December 5, 2024 to jointly establish an AI R&D center and an AI data center in Vietnam.

"This agreement marks a critical milestone that will propel Vietnam forward in the global technology race. It will serve as a catalyst for attracting further high-tech investments, particularly in AI and semiconductors, strengthening Vietnam's position as a regional and global hub for these industries," the minister noted.

He also emphasized that the deal would help attract and retain top-tier talent in semiconductors and AI.

Seizing "rare" opportunity to join semiconductor value chain

Despite the significant progress, Minister Dung acknowledged that Vietnam faces challenges that must be addressed to unlock the full potential of its semiconductor industry.

To further develop the sector, the MPI has laid out action plans for relevant ministries, local governments, research institutes, and universities. Businesses are also urged to take a more proactive role in exploring opportunities within the semiconductor value chain.

Dung stressed the importance of closer cooperation between the government, academia, and the private sector: "Vietnam has a rare opportunity to integrate deeply into the global semiconductor value chain. This can only be achieved if all - ministries, local authorities, businesses, research institutes, universities, and experts, both domestically and internationally - work together."

The minister also pointed out that achieving the country's goals is not something that can be accomplished in isolation. To truly succeed, Vietnam needs to form strong, rapid, and comprehensive partnerships with leading global players in the semiconductor industry.

"By standing on the shoulders of giants, we can leverage our human resource advantages to position Vietnam as a central player in Asia and around the world in semiconductor development, with the potential to become a global AI powerhouse in the future," he said.

Looking ahead, the minister outlined key strategies for accelerating Vietnam's growth in the semiconductor industry. These include implementing the approved Semiconductor Human Resource Development Strategy and Program, and increasing international cooperation.

The focus will also be on attracting investment projects related to advanced packaging, an area that could offer significant breakthroughs for the country.

To foster sustainable growth, Vietnam will continue to strengthen the three key pillars of its semiconductor industry: policies and mechanisms, infrastructure, and high-quality human resources.