The US$127-million facility, inaugurated on July 28, is set to produce silicon carbide semiconductors, optical glass, and equipment.

In his speech, Dung hailed Coherent’s expansion in Vietnam as a gateway to deeper cooperation in hi-tech manufacturing, knowledge and technology transfer, and workforce training. The facility is to generate thousands of skilled jobs for Vietnamese workers.

Vietnam’s tech credentials are on the rise. In 2024, it climbed to 44th out of 133 economies in the Global Innovation Index, up two spots from the prior year and outperforming its development level for 14 straight years. The country is becoming a strategic base for tech heavyweights like NVIDIA, Apple, Google, Qualcomm, Intel, Meta, and now Coherent, Dung noted.

He urged Coherent to double down on intensive investment in Vietnam, especially in high-value semiconductor segments, local talent development, and partnerships with Vietnamese universities and research institutes to build a robust innovation ecosystem. The company should also establish R&D centres, representative offices, labs, and pilot production facilities at the National Innovation Centre and other high-tech zones, Dung said.

The Vietnamese Government is committed to supporting both foreign and domestic investors for their long-term, sustainable, and effective operations, the Deputy PM affirmed.

Gan YC, Director of the plant in Nhon Trach 1, said the facility plays a key role in increasing Coherent’s capabilities in silicon carbide and optical fields - the key to powering industrial systems, high-speed communications, and data centre infrastructure.

Equipped with smart manufacturing systems and a local high-quality workforce, the plant aims to reinforce supply chain resilience, cut delivery time, and improve access to key Asian markets, he said.

The Nhon Trach 1 plant marks the first part of Coherent’s larger investment of US$1 billion in Vietnam. This investment encompasses three high-tech projects: silicon carbide manufacturing, advanced optics, and M-Cubed project. These initiatives received approval in 2024 following proposals submitted in October 2023. Located in Nhon Trach Industrial Parks 1 and 2, these projects are expected to generate over US$1.2 billion in annual output.

Vietnam an important link in global value chains: int’l observer

Vietnam, through its economic reforms, has positioned itself as one of the key actors in terms of global value chains, influencing regional and global economic dynamics, according to Red Lantern Analytica, an international affairs observer group based out of New Delhi, India.