Golden Opportunity for Advancing Semiconductor Industry

Mr. Sugano Yuichi

Chief Representative of JICA Vietnam Office

Over the past year, JICA has worked closely with the Government of Vietnam to support socio-economic development. We have signed loan agreements worth up to 678 million USD, the highest in the past six years, along with technical cooperation totaling 35 million USD, the largest in the world for this fiscal year. Our grant aid has reached 7.5 million USD. The programs and projects in Vietnam are based on three pillars: high-quality growth, support for vulnerable groups, and human resource development.

Regarding current high-quality growth projects, notable examples include the Yen Xa Wastewater Treatment Plant in Hanoi, one of the largest facilities of its kind in Vietnam, and Metro Line 1 in Ho Chi Minh City, which helps reduce traffic congestion and carbon emissions while promoting sustainable urban transport.

In addition, JICA is also implementing projects to support vulnerable groups, such as technical cooperation for landslide response in the northern region, especially in areas severely affected by natural disasters, to help Vietnam recover and develop sustainably. We are also carrying out collaborative programs in agriculture, healthcare and medical equipment, such as upgrading medical equipment at K Hospital to improve cancer treatment services.

Regarding human resource development, JICA continues to collaborate with the Vietnam-Japan University to train high-quality human resources, implements the "Keieijuku" business leadership training program at the Vietnam-Japan Human Resource Development Institute (VJCC), and provides scholarships for Vietnamese students to study in Japan, thereby enhancing their research capacity in science and technology.

While cooperation has achieved many successes, some projects still face challenges due to cultural differences and varying levels of development between countries. To overcome these challenges, JICA has implemented initiatives such as sending experts and volunteers to partner countries and inviting partner government officials to Japan to learn about technology, customs and work practices, thereby fostering mutual understanding and trust.

The Government of Vietnam is currently working to improve legal regulations related to foreign investment, creating confidence for bilateral donors like JICA, international organizations, multinational companies, and non-governmental organizations (NGOs). JICA appreciates the efforts of the Vietnamese Government in building legal frameworks and sharing a common understanding to facilitate project implementation. We also look forward to continuing to provide constructive suggestions and leveraging our experience to support Vietnam in its upcoming reforms.

Mr. Nguyen Van

Vice President of the Hanoi Supporting Industry Business Association (HANSIBA)

Given steady economic development in recent years, Vietnam has drawn strong interest from foreign investors and always led the Southeast Asian region in foreign direct investment (FDI) value. Foreign investors choose Vietnam because, compared to other Southeast Asian countries, it has advantages such as a stable political context and abundant skilled labor force. Vietnam's semiconductor and high-tech industries have attracted much attention from the world in recent years.

A specific policy mechanism for businesses is necessary and sufficient to develop supporting industries. In addition, there is a need for a standard land infrastructure for foreign enterprises to place orders. At the same time, businesses want to access financial and capital resources to purchase machinery and equipment.

Therefore, banking institutions need to consider providing good access to capital and long loan terms for supporting industrial businesses because their investment may take 2-3 years or even 5-10 years to make a profit. Moreover, banks should open up more forms of credit because many companies run out of cash. In my opinion, they can mortgage their machinery, equipment and factories, and should additionally have a third-party guarantee. The Hanoi Development Investment Fund and the State Bank of Vietnam - Hanoi Branch can consider providing loans for worker housing and social housing projects, especially after COVID-19 when many businesses adopted and promoted socially distanced on-site production.

Recently, the National Assembly officially ratified the North-South high-speed railway investment project. This is not only a key transport project but also a big boost for the economy as well as many related industries. This project not only helps modernize the transport system but also opens up great opportunities for supporting industrial companies, especially in mechanical engineering, manufacturing, automation, steelmaking, construction materials like concrete, steel and infrastructural components such as bridges, culverts and tunnels because these are essential elements to complete the North-South high-speed railway project.

In addition, one of the other great opportunities is the transfer and mastery of railway technology. Supporting industrial companies will have the opportunity to acquire advanced technologies from international partners, especially countries experienced in developing high-speed railways such as Japan, France, Germany, South Korea and China. HANSIBA and its members have been connecting with international partners to cooperate in the manufacturing, technology transfer and supply of products for industrial projects such as aviation, space and high-speed trains.

We hope that direct working programs between authorities with organizations and associations, especially HANSIBA, will help domestic companies grasp information and embrace opportunities to cooperate with domestic and foreign general contractors.

Assoc. Prof. Funabashi Gaku

International University of Japan (IUJ)

For Vietnam to avoid the middle-income trap and achieve its goal of becoming a high-income, modernized nation by 2045, improving labor productivity and generating value-added growth are crucial factors. Vietnam needs to transition from a model based on low labor costs, foreign technology and infrastructure adoption, and industrial development through foreign direct investment (FDI) to an innovation-driven strategy leveraging domestic resources.

Vietnam's development approach based on internal strengths and international integration is absolutely correct. However, relying too heavily on FDI for industrial development will make it difficult for the country to transition from a middle-income nation to a high-income one. Vietnamese businesses must focus on developing their own technologies, identifying target markets and building an industrial system based on core industries, while innovating strategically and incrementally.

Taking the semiconductor industry as an example, with the government's goal of training 50,000 engineers by 2030, Vietnam can learn valuable lessons from the experiences of countries and territories such as Japan, South Korea and Taiwan. Technological development can start by imitating existing technologies, but more importantly, it requires a continuous process of research, development and investment. It is crucial to emphasize that clearly identifying markets and building development strategies based on available resources and strengths is essential, and this requires support from government agencies.

From experience in the Japanese automotive industry, it has been observed that gathering information from stakeholders, providing feedback to production facilities, experimenting with technology, and sharing information across departments such as production, R&D and marketing are all essential. This management approach helps companies accumulate both tangible and intangible resources and combine them with other resources to drive the overall growth of the industry.

Regarding technology transfer from abroad, Vietnam must realistically recognize that what can be transferred from Japan and other countries is limited. However, Vietnam can start by adopting foreign technology as an initial step, and then private companies, the main drivers of national industrial development, must innovate on their own to achieve a better position.

Vietnam's ministries, agencies, and local governments are supporting small-scale private companies. Although these companies are not yet an official part of the national industry, they hold significant potential and could make substantial contributions to Vietnam's future development.

Mr. Tony Meng

General Manager of Chargecore Global Pte. Ltd.

With strategic vision and strong determination from the country’s leadership, especially under the guidance of General Secretary Tô Lâm, Vietnam is generating significant momentum to drive innovation, enhance competitiveness, and accelerate deeper integration into the global value chain. The government is not only focused on improving the regulatory environment but is also actively promoting initiatives such as digital transformation, renewable energy development, and the creation of a green economy – areas where Chargecore Global is well-positioned to contribute.

Chargecore Global, a leader in EV charging solutions, has been playing a pivotal role in supporting Vietnam’s transition to sustainable energy and transportation. As one of the key partners of VinFast and VGreen, Chargecore Global is currently responsible for supplying most of the EV charging stations across the country. Our technology and infrastructure not only enable the growth of Vietnam’s electric vehicle ecosystem but also drive the nation towards its ambitious net-zero emissions goals.

In this new phase, we see immense opportunities arising from Vietnam’s push for green mobility and renewable energy. The rapid expansion of EV infrastructure is crucial as Vietnam positions itself as a regional leader in electric vehicle manufacturing and usage. Chargecore Global remains committed to expanding our charging network, ensuring widespread accessibility, and delivering cutting-edge solutions that enhance efficiency and performance.

Recognizing the government's focus on developing a high-quality workforce, Chargecore Global is also investing in talent development, working closely with educational institutions to nurture the next generation of engineers and technology specialists. This aligns with Vietnam’s broader goal of building a strong, innovative, and resilient economy capable of leading in the green technology sector.

With the steadfast support of the government and collaboration from the business community, we firmly believe that Vietnam is entering a transformative era of economic and technological growth. Chargecore Global is dedicated to being a long-term partner, driving innovation and contributing to making Vietnam a key player in the regional and global green energy landscape.

Mr. Jonas Eichhorst

CEO of TIMO

At the end of 2024, the Vietnam banking sector achieved an important milestone in digital transformation. According to the regulations of the State Bank of Vietnam (SBV), starting from January 1, 2025, customers will be required to complete biometric authentication to perform online transactions. This is a solid foundation, providing a launchpad for cashless payments and financial products and services on digital channels in 2025.

It is certain that the application of biometric authentication to cross-check data from the national population database will help verify the true identity of customers when opening accounts, cards, or e-wallets. This solution plays a crucial role in minimizing the use of non-authentic accounts in fraudulent transactions.

According to the latest statistics from the National Payment System, State Bank of Vietnam, by mid-December 2024, 66.6 million individual customers had undergone biometric authentication. After more than three months of implementation, the number of fraud cases has decreased by 50%, and the number of accounts receiving fraudulent money has dropped by over 70% compared to the average of the first seven months of 2024. This has had a positive impact on building customer trust, while also driving the development of digital banking, e-wallets and digital financial solutions.

Timo’s strengths lie in our customer-first approach, seamlessly blending technology and financial services to address the evolving needs of Vietnam’s growing digital economy. A few highlights include a simple yet powerful user experience with an intuitive app design that makes managing money effortless, as well as a focus on trust and transparency through clear communication and no hidden fees, which has helped build genuine trust, with 2025 marking our 10th anniversary. Additionally, many of our innovations revolve around social use cases, such as managing money within families, among friends or other groups. Beyond banking, Timo connects with its customers through initiatives that inspire and add value to their everyday lives.