Vietnam, Singapore seek cooperation chances in semiconductor industry

The Vietnam Trade Office in Singapore, in collaboration with the Singapore Semiconductor Industry Association (SSIA), organized a hybrid seminar on Monday to introduce Vietnam's potential, advantages, and development strategies for the semiconductor industry.

The event attracted numerous investors and industry partners, including representatives from the International Semiconductor Industry Group, Qualcomm, and Marvell.

In his opening remarks, Vietnamese Ambassador to Singapore Tran Phuoc Anh stated that the Vietnamese Government considers semiconductors a key sector of the national economy.

In 2024, Prime Minister Pham Minh Chinh issued the semiconductor industry development strategy to 2030, with a vision to 2050, in which the country sets a target of becoming a global hub for semiconductor talent and establishing fundamental capabilities in research, design, manufacturing, packaging, and testing by 2030.

The industry's annual revenue is expected to exceed $25 billion, with a value-added growth rate of 10-15% in the 2024-2030 period.

He affirmed that the two countries hold great potential and cooperation opportunities, given that Singapore has rich and advanced experiences in this field.

SSIA executive director Ang Wee Seng stated that Singapore's semiconductor ecosystem currently contributes nearly 12% of the global semiconductor market and accounts for about 8% of the city state’s GDP.

Cross-border collaboration will be key to unlocking the next growth opportunities as Vietnam is an emerging player in the industry, with a market size exceeding $18 billion in 2024 and projected to rise to over $31 billion by 2029, stressed Ang.

Vietnam is rapidly becoming a key destination for investments in innovation, manufacturing, and semiconductors, backed by strong government commitments, an improved business environment, and the country’s strategic positioning in the regional supply chain.

It is drawing increasing interest across the entire semiconductor value chain, from design to assembly, testing, and packaging, while its booming electronics and technology manufacturing sectors - particularly in automotive, including electric vehicles, consumer electronics, and telecommunications - are driving demand for semiconductors.

These trends align with Singapore’s key focus areas, offering great potential for collaboration, he said, adding that a crucial factor driving this growth is talent. Developing a skilled workforce and visionary leadership is essential to sustaining innovation, he stressed.

Regarding the future development of the semiconductor industry, representatives of participating businesses suggested that Vietnamese enterprises should focus on researching and developing next-generation electronic devices integrating specialized chips and AI chips, investing in supply chain development, and building relationships with suppliers of raw materials, components, and equipment.

Enhancing international cooperation and attracting investment from major global corporations to gain development experience and access advanced technology, promoting investment in technology infrastructure, gradually building a strong brand, and expanding the domestic market were also recommended by them.

The Vietnam Trade Office plans to organise a delegation of investors and semiconductor industry partners from Singapore to visit Vietnam in the near future to promote investment in this sector.