Vietnam - "Rising Star" in the Semiconductor Market

According to an article published on April 11 on the website of business strategy consulting and operations management firm Tractus, Vietnam has demonstrated a large and growing position in the semiconductor value chain in ASEAN in recent years.

The author of the article said that the semiconductor market is expected to grow from 17.24 billion USD in 2023 to 26.20 billion USD in 2027. Vietnam is a testament to this growth, especially when electrical equipment exports to the US have skyrocketed since 2018.

The article attributes this extraordinary growth to Vietnam's location on key international logistics routes, with 34 ports and 15 major highways connecting to the global trade network.

Furthermore, Vietnam is a globally integrated country, having signed 16 free trade agreements (FTAs) and having close economic relations with leading chip manufacturing countries, including the US, South Korea and Japan. This presents an attractive opportunity for chip corporations looking to diversify production.

According to the article, Vietnam has a labor cost advantage thanks to its abundant workforce and relatively low cost of living. The Vietnamese government is actively promoting computer science education, aiming to train 50,000 semiconductor engineers by 2030.

In addition, the electronics industry (EI) is booming in Vietnam, led by multinational corporations such as Samsung and Daewoo (Korea). This industry plays an important role in increasing the proportion of semiconductor materials to manufacture necessary electronic components.

According to the author, the application of 3D packaging technology has revolutionized the industry, improving performance and energy efficiency. Advances in materials such as gallium nitride (GaN) and silicon carbide (SiC) are also opening up new possibilities.

The article commented that the COVID-19 pandemic and US trade barriers have forced semiconductor manufacturers to diversify production and Vietnam has become an attractive choice.

Vietnam is capitalizing on this trend by offering competitive incentives for foreign direct investment (FDI) projects, especially in high-tech sectors.

In addition to foreign investment, Vietnamese technology corporations are actively shaping the future of the industry. Notably, FPT Corporation, through its subsidiary FPT Semiconductor, has penetrated the domestic non-manufacturing market.

The article concludes that Vietnam's strategic location, cost advantages and booming electronics industry have made the country a "rising star" in the global semiconductor market.

With government support, technological advancements and increasing domestic and foreign investment, Vietnam will play a key role in the future of this vital industry.