[HO CHI MINH CITY] The Vietnamese government has just approved a national programme to realise its goal of training 50,000 semiconductor engineers and workers with bachelor’s degrees by the end of this decade.
The programme, effective from Sep 21, is one of several measures being developed by the South-east Asian country to further participate in global chip supply chains, which have become increasingly diversified amid the intense China-US tech war.
The state will provide funding to assist in the investment, construction, upgrade and modernisation of four national semiconductor laboratories by 2030. The shared facilities are located at the Vietnam National Innovation Centre and universities in Hanoi, Ho Chi Minh City and Da Nang – the three tech hubs of the country.
About 18 public universities will also be financially supported to develop local labs across the nation within the next six years.
Vietnam’s government will also offer grants for semiconductor-related research projects, as well as provide financial support for the specialised training of instructors in the chip sector.
Specific mechanisms and policies will be developed to attract domestic talent, overseas Vietnamese, and international experts in the semiconductor and artificial intelligence (AI) industries to work in Vietnam, including scholarships and tuition waivers for students, competitive salaries and personal income tax incentives for professionals, and long-term work visa support for foreigners.
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In a document from the country’s investment ministry reviewed by The Business Times, Vietnam is expected to house about 10 packaging, assembly and testing factories, and 15 equipment-producing plants for the semiconductor industry by 2030, requiring a supply of 30,000 engineers.
The country could also see its semiconductor ecosystem expand, with 100 fabless companies employing around 13,500 chip-design engineers by 2030.
Another 6,500 Vietnamese engineers are expected to be sent to work overseas, comprising 1,500 engineers for chip-design roles, and another 5,000 for other chipmaking jobs.
According to the national programme, the country is also aiming to prepare around 5,000 AI specialists to serve the semiconductor industry by the end of the decade.
In July, Vietnam’s information ministry also sought feedback for the draft Digital Technology Industry Law, which draws up a list of perks for chip companies.
The ministry proposed financial support for the costs of purchasing modern equipment, transporting production lines into Vietnam, and investing in new chip-manufacturing projects.
The draft law also includes expedited government processes and specific mechanisms for investments, imports and exports of goods, materials and components in the chip sector.
Large projects in digital technology industries, such as semiconductors, can also enjoy incentives for corporate income tax, personal income tax, import tariffs of materials and equipment, as well as a 10-year exemption from land-rental fees.
The law is set to be presented to parliament in October, and could be enforced as early as mid-2025 if it is passed.
More broadly, Vietnam is also weighing methods to retain its attractiveness as an investment destination amid the country’s adoption of the 15 per cent global minimum tax rate.
One of them is the establishment of an investment support fund using the money from the top-up tax revenue and other appropriate sources to grant cash support to eligible firms in high-tech industries such as AI and semiconductors.
This will cover expenses related to training and human resources development, investment in assets, high-tech product manufacturing, and research and development.
