On August 8, 2024, Vietnamese Prime Minister Pham Minh Chinh signed a decision to establish a national steering committee on semiconductor industry development, paving the way for the country’s future in this industry.

The committee’s establishment coincides with the national trajectory of deeper integration into regional and global semiconductor value chains. By 2030, Vietnam plans to gain profound engagement in the semiconductor packaging and testing process, which will be executed by mastering part of the associated technology and training 50,000 engineers.

Currently, Vietnam has nearly 160 out of about 240 universities providing technology training and ready to expand to semiconductors, as well as 35 educational institutions offering majors related to semiconductors.

The National Steering Committee’s launch will help Vietnam better navigate its ambitions.

Main tasks

According to Decision No. 791/QD-TTg dated August 5, 2024, the steering committee is an interdisciplinary coordination organization whose function is to assist the government and the Prime Minister in researching, directing, and coordinating the resolution of crucial tasks related to promoting the development of the semiconductor industry in Vietnam.

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The committee is responsible for researching, consulting, and making recommendations, as well as proposing directions and solutions to promote the development of the semiconductor industry in Vietnam. It is also tasked with facilitating the coordination between ministries, ministerial-level agencies, government bodies, and relevant organizations to promote the industry’s future.

Members of the steering committee

The National Steering Committee for the development of the semiconductor industry consists of the following members:

1. Head of the Committee: Prime Minister Pham Minh Chinh.
2. Permanent Deputy Head of the Committee: Minister of Planning and Investment.
3. Deputy Head of the Committee: Minister of Information and Communications.
4. Members:

• Minister, Head of the Government Office;
• Minister of Foreign Affairs;
• Minister of Education and Training;
• Minister of Science and Technology;
• Minister of Industry and Trade;
• Minister of Finance;
• Minister of Justice;
• Minister of Natural Resources and Environment; and
• Minister of Transport.

Operation of the steering committee

The steering committee operates under a regime of concurrent positions, promoting personal responsibility, as well as exercising powers and duties in line with the regulations on the organization and operation of the steering committee.

The Head of the Committee uses the seal of the Prime Minister; the Deputy Heads and members of the steering committee use the seals of their governing ministries.

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The Ministry of Planning and Investment (MPI) is the standing agency of the steering committee, using the existing apparatus to organize the implementation of tasks assigned by the steering committee. The standing agency presides over and coordinates with ministries, branches, localities, and relevant agencies to synthesize and report periodically before December 31 every year or ad hoc on the operations situation. The reports must be sent to the Ministry of Home Affairs and the Government Office for synthesis and reporting to the Prime Minister.

Vietnam’s potential in the semiconductor industry

According to the MPI, Vietnam has emerged as a potential link in the global semiconductor value chain with its advantages in strategic location, developing infrastructure, tech-savvy population, and abundant, creative talent pool. Big names in the industry, like Intel, Samsung, Qualcomm, Infineon, and Amkor, have chosen Vietnam to be their destination for factories and production and assembling expansions with values up to billions of dollars.

Vietnam is gradually adjusting its policies and laws on investment and business to create favorable conditions for investors. In addition, the country is implementing various solutions to encourage deeper integration of domestic enterprises in the global semiconductor supply chain, along with new technology adoptions.

However, experts emphasize that Vietnam has a maximum of 3-5 years to address its issues regarding infrastructure and workforce to achieve its goal, given that other nations are also in the race to be a part of the global semiconductor value chain. To grasp and realize this opportunity, some even argue that Vietnam must swiftly deploy its implementation within no more than 24 months and focus on three core contents:

• Perfecting specific mechanisms and policies to ensure competitiveness compared to other countries in the region;
• Synchronizing infrastructure of electricity, water, transportation, fiber optic cables, information technology; and
• Developing high-quality human resources for the industry.

Accelerated race to introduce draft strategy

The Ministry of Information and Communications (MIC) is responsible for penning the draft Semiconductor Industry Development Strategy for 2030, with a vision to 2045. Last April, the MIC confirmed that it was accelerating the drafting progress in coordination with domestic and foreign experts.

With visions to 2045, the three most important elements of this strategy are:

• The development of semiconductor chips must go hand in hand with the strategy of the electronics industry.
• Vietnam will move from a global semiconductor human resource hub to a semiconductor industry hub.
• Vietnam will be a link in the global semiconductor supply chain’s shift.

Key tasks will be set out from these narratives for institutional and policy improvements, human resource development and training, research, startup support, semiconductor ecosystem formation, and international cooperation.

Conclusion

The National Steering Committee indicates Vietnam’s solid determination to implement the development of the semiconductor industry. The presence of major semiconductor players in Vietnam also guarantees that an ecosystem will gradually take shape, opening up business opportunities for other participants in the supply chain.