Vietnam opens investment path to become global semiconductor hub

Open policies for investors and the government’s forward-looking approach are turning Vietnam into a vital link in the global value chain and an attractive destination for major technology corporations, heard the SEMIEXPO Vietnam 2025 held today (November 7) in Hanoi.

According to the ministries of Science and Technology and Finance, Vietnam now hosts more than 170 foreign-invested semiconductor projects with a total registered capital of nearly US$11.6 billion.

Global tech giants such as NVIDIA, Qualcomm, Coherent and Marvell have chosen Vietnam as a strategic base for chip R&D and production.

Domesticallty, Viettel’s first chip plant is scheduled for completion in 2026, marking an important step in Vietnam’s journey toward mastering semiconductor technology.

Strategically located in Southeast Asia, Vietnam is well positioned to benefit from global supply chain shifts and deep economic integration through more than 17 free trade agreements.

The country’s fast-growing electronics sector, with 2024 exports reaching US$132.3 billion, up 16.8% from 2023, provides a solid foundation for semiconductor expansion.

With a population of 100 million, over 60% whom are young and a tech workforce of 1.9 million, including 500,000 engineers, Vietnam offers a strong human resource base for future growth.

The government has also introduced strong incentives. Semiconductor projects worth over VND6 trillion ($238 million) qualify for a 5% tax rate for 37 years, a six-year tax exemption, a 50% reduction for the next 13 years and full land rent and personal income tax exemptions for high-quality workers for five years.

According to Deputy Minister of Science and Technology Bui Hoang Phuong, the semiconductor industry is one of the key drivers propelling Vietnam into the digital era.

“These special mechanisms reflect the government’s highest priority for the semiconductor industry as a foundation for the country’s future," said Phuong.

He said the sector is vital to strengthening national competitiveness, driving economic growth and securing Vietnam’s strategic position in global value chains.

The semiconductor value chain centers on two main stages: chip design and assembly, packaging and testing (APT). Vietnam now has 58 chip design companies and eight APT projects involving global firms such as Intel, Amkor and Hana Micron.

Vietnam is also attracting companies producing materials and equipment for semiconductor manufacturing, including the US-based Coherent and Dutch firm VDL, signaling strong potential for both local and international investors, Phuong said.

Deputy Minister of Finance Nguyen Duc Tam said the growing presence of global semiconductor investors shows their confidence in Vietnam’s business environment.

“This marks a strategic step in Vietnam’s knowledge-based and innovation-driven growth, moving toward a new era of prosperity, strength and happiness,” Tam said. “Together, these efforts form a comprehensive picture of a vibrant Vietnamese semiconductor ecosystem.”

He noted that recent legal reforms are shaping a complete framework for the semiconductor sector.

According to Tam, the new Law on Science, Technology and Innovation and the Law on the Digital Technology Industry introduce synchronized policies that encourage high-tech investment through tax, land and workforce incentives.

Vietnam has also established a National Steering Committee on Semiconductor Industry Development, highlighting the government’s determination to make Vietnam a key player in the global semiconductor supply chain.

Vietnam opens the road for investors

Deputy Prime Minister Nguyen Chi Dung reaffirmed the government’s commitment to work with global investors to develop a dynamic semiconductor ecosystem.

“To advance the industry, Vietnam is focusing on improving regulations and incentives to align with international standards, enhance competitiveness and attract investment in areas such as energy, taxation, land, technology transfer and intellectual property,” he said.

“Vietnam is creating favorable conditions and actively opening the road for investors to grow together,” Dung emphasized.

He said Vietnam welcomes projects with advanced technologies, high value-added production and strong commitments to environmental sustainability, technology transfer and local business participation.

The Deputy Prime Minister praised SEMIEXPO Vietnam 2025 as a landmark regional event that connects domestic enterprises with global tech corporations, supports workforce training and promotes Vietnam as a rising destination in the global semiconductor industry.

He called on the Semiconductor Equipment and Materials International (SEMI) and global companies to set up production facilities in Vietnam, work with policymakers to refine semiconductor strategies and help local firms develop chip manufacturing capabilities and standards.

He also encouraged cooperation in building training programs and local policies to nurture semiconductor talent.