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Prime Minister Pham Minh Chinh has signed a decision issuing the strategy for development of Vietnam’s semiconductor industry by 2030, with a vision toward 2050.
Under Decision 1018/QD-TTg dated September 21, 2024, the strategy outlines a roadmap for the industry’s development by applying the formula of C = SET + 1 (C stands for Chip, S for Specialized, E for Electronics, T for Talent, and + 1 for Vietnam, which will strive to become a new and safe destination of the global semiconductor supply chain).
According to the strategy, the industry will be developed in three phases.
In the first phase from 2024 to 2030, the nation will use geopolitical and workforce advantages, establish itself as one of the global semiconductor manpower centers, and grow fundamental capacity in all steps, from research, design, and manufacturing to packaging and testing.
In the second phase from 2030 to 2040, the country will work to become a global semiconductor and electronics center while developing the semiconductor and electronics industries that combine both self-reliance and FDI.
For the third phase from 2040 - 2050, Vietnam looks to become one of the world’s leaders in the semiconductor and electronics industries, and master research and development (R&D) in these fields.
In phase 1, the country will selectively attract FDI; set up at least 100 design companies, one small-scaled manufacturing factory, and 10 packaging and testing plants; and develop some specialized semiconductor products for several sectors.
The semiconductor industry is expected to secure annual revenue of more than USD 25 billion and an added value growth rate of 10-15 percent. Meanwhile, the electronics industry targets over USD 225 billion in annual revenue and also 10-15 percent in added value growth.
In Phase 2, Vietnam will develop a semiconductor industry combining self-reliance and FDI, with at least 200 design companies, two manufacturing factories, and 15 packaging and testing plants, and gradually ensure self-sufficiency of design and production technologies for specialized semiconductor products.
It targets respective annual revenues of over USD 50 billion and USD 485 billion for the semiconductor and electronics industries, which are expected to record an added value growth rate of 15-20 percent.
Meanwhile, more than 100,000 semiconductor engineers and graduates will be available during 2030-2040.
In Phase 3, there will be at least 300 design companies, three manufacturing factories, and 20 packaging and testing plants. The country is also set to master semiconductor R&D.
The semiconductor and electronics industries are expected to post respective annual revenues of more than USD 100 billion and USD 1.045 trillion, as well as a growth rate of 20-25 percent in added value.-
