Importance of semiconductor industry development in new era highlighted

Prime Minister Pham Minh Chinh chaired the first meeting of the National Steering Committee on Semiconductor Industry Development on December 14 in Hanoi.

In his speech, Prime Minister Pham Minh Chinh emphasized that developing the semiconductor sector is viewed as a strategic breakthrough and also a key task, something that needs to be done, must be done and is determined to be done, on the basis of Vietnam's distinct potential, outstanding opportunities, competitive advantages and strategies.

The semiconductor industry has developed strongly and is one of the key sectors promoting the information revolution and Industry 4.0 with profound economic and political significance. The semiconductor industry serves as the foundation of three revolutionary transformations, establishing the historical process and new world order of digital transformation, green transformation, and smart transformation.

Recognizing the importance of the semiconductor industry in creating breakthroughs and promoting the country's economic growth moving into the new era, the Government has recently directed relevant ministries and agencies to resolutely implement many mechanisms, policies, and solutions in a bid to boost the semiconductor ecosystem.

In which, the PM issued the Semiconductor Industry Development Strategy and the Semiconductor Industry Human Resource Development Program to 2030, with a vision towards 2050.

At the meeting, members of the Steering Committee and delegates discussed a specific plan in which to implement the Strategy and Program for human resource development in the semiconductor industry, while also reviewing and re-evaluating what has been done and what has not been done. This includes discussing ways in which to remove obstacles and continue to promote faster and stronger development of the semiconductor industry ecosystem in the nation.

Reporting at the meeting, Minister of Planning and Investment Nguyen Chi Dung said that developing the semiconductor industry is a common trend in the world amid changes relating to Industry 4.0 and will continue to be an inevitable trend in the future. It can be seen as the "backbone" for developing many industries, as well as attracting talent for countries, while orienting the economy towards a digital, green, and circular economy.

Developing the semiconductor industry is therefore a strategic choice that is necessary to continue to implement comprehensively, including strong investment in human resource development, continuing to make institutional breakthroughs, and investing in upgrading and revising infrastructure. Other efforts include stepping up international co-operation with countries, economies, and large technology corporations in the world, Minister Dung went on.

Vietnam boasts strategic advantages in developing the semiconductor industry as it is the world's second largest rare earth reserves, an extremely favourable geographical location in the centre of the region that accounts for 70% of the global semiconductor industry's production output, abundant human resources and great potential, being one of the 16 most populous countries in the world with a high proportion of young people, ranked 44th out of 133 economies in innovation.

Moving forward, Vietnam needs to continue to make breakthroughs in policy mechanisms such as establishing an Investment Support Fund, proposing mechanisms and policies in the process of drafting legal documents, including Investment Law, and Corporate Income Tax Law, setting up Science and Technology Development Fund of Enterprises, and adopting preferential policies on personal income tax.

In addition, the National Innovation Center (NIC) as well as the HCM City, Hoa Lac, and Da Nang High-Tech parks, as well as many standard industrial parks, serve as potential destinations in the process of shifting the semiconductor production chain and attracting FDI capital from major semiconductor technology corporations from around the world such as Amkor, Samsung, Hana Micron, Foxconn, LAM Research, Coherent, and Intel.

There are many IT companies and good investors such as Viettel, FPT, and Phenikaa that are implementing development strategies and promoting specific projects in the semiconductor field, Minister Dung said, adding that Vietnam starts to have potential semiconductor startups such as Infrasen, VnChip, and Hyphen Deux.

Regarding international co-operation, a Memorandum of Understanding has been signed between Vietnam and the United States, as well as cooperation programmes within the framework of the Innovation and Technology Security Fund (ITSI) on developing the ecosystem and human resources of the semiconductor industry.

The country has proactively organised and connected investment and business through a variety of activities such as Vietnam Semiconductor Industry Exhibition, while also inviting and welcoming large technology corporations in the world like NVIDIA, Samsung, Qualcomm, LAM Research, Marvell, and Qorvo to learn about the investment environment with an aim of expanding production, business activities in Vietnam.

The nation is also stepping up international linkages by establishing semiconductor co-operation frameworks with partners such as the Republic of Korea, Japan, Taiwan (China), and India, he added.