Vietnam Unveils Semiconductor Industry Development Strategy to 2030, Vision to 2050

On September 21, 2024, Prime Minister Pham Minh Chinh signed Decision No. 1018/QD-TTg, issuing Vietnam's Semiconductor Industry Development Strategy to 2030 and vision to 2050. This strategy aims to position Vietnam as a global center for semiconductor and electronics industries.

Context

The semiconductor industry plays a key role in the modern digital economy. Semiconductor chips are the basic components in most electronic devices, from smartphones and computers to cars, medical equipment and industrial infrastructure. The development of 5G technology, artificial intelligence (AI), the Internet of Things (IoT) and electric vehicles is driving the increasing demand for semiconductor chips.

The semiconductor industry is becoming a strategic sector in the global economy. Vietnam, with its favorable geographical location, young human resources and attractive investment environment, has great potential to develop this industry. However, to be successful, Vietnam needs to have a long-term strategy, invest heavily in education and infrastructure, and strengthen international cooperation. Developing the semiconductor industry will not only bring economic benefits but also enhance Vietnam's position in the global technology value chain.

Development Formula

The strategy proposes a development formula: C = SET + 1, where:

• C: Chip (Semiconductor Chip)
• S: Specialized (Specialized Chips)
• E: Electronics (Electronics Industry)
• T: Talent (Human Resources)
• +1: Vietnam (new safe destination in the global semiconductor supply chain)

Development Roadmap

The strategy is divided into 3 phases:

1. 2024-2030: Attract FDI, develop human resources, establish basic capabilities.
2. 2030-2040: Become a global center for semiconductor and electronics industries.
3. 2040-2050: Position Vietnam among the world's leading countries in semiconductor and electronics industries.

Specific Objectives

By 2030:

• Semiconductor industry revenue: over $25 billion/year
• Electronics industry revenue: over $225 billion/year
• Human resources: over 50,000 engineers and graduates

By 2050:

• Semiconductor industry revenue: over $100 billion/year
• Electronics industry revenue: over $1,045 billion/year

Key Tasks

1. Develop specialized chips
2. Develop the electronics industry
3. Develop human resources and attract talent
4. Attract investment in the semiconductor sector
5. Establish a National Steering Committee and Expert Advisory Team

This strategy demonstrates Vietnam's determination to develop its semiconductor industry, aiming to become a significant manufacturing and innovation hub in the global supply chain.