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The semiconductor industry is becoming a crucial pillar of Vietnam's digital economy, with the government actively attracting investment from foreign enterprises.Strong Development PotentialWith its key role in the digital economy, the semiconductor industry is solidifying its importance in the context of the Fourth Industrial Revolution. Semiconductor products are widely applied across various fields, creating a trend that requires countries to enhance their capabilities and diversify supply chains.Vietnam holds geopolitical advantages and human resources in the semiconductor sector. With an estimated 20 million tons of rare earth reserves, Vietnam ranks second in the world for this resource, following China. Furthermore, the government has approved a human resource development program for the semiconductor industry, aiming to train at least 50,000 university-level professionals by 2030.Increasing Investment SourcesCurrently, Vietnam is attracting significant interest from leading corporations in the semiconductor industry. In 2024, the value of the semiconductor industry is projected to exceed $6.16 billion, positioning Vietnam as one of the important chip manufacturing hubs in the world.Sustainable Development StrategyOn September 21, 2024, the Prime Minister issued a strategy for developing Vietnam's semiconductor industry through 2030, with a vision for 2050. The goal is to selectively attract investment, and establish at least 100 chip design companies, one small-scale chip manufacturing plant, and 10 packaging plants.Vietnam is actively facilitating the entry of foreign high-tech enterprises into the semiconductor industry, aiming to improve product quality and expand access to modern technology, striving for a leading position as a semiconductor manufacturing center in the region.Source: Information and Communication Magazine

Vietnam's digital economy is rapidly growing, reaching a value of $30 billion in 2023 and projected to increase by 20% to $43 billion by 2025. This growth is driven by the adoption of technology in businesses, the development of fintech, and rising incomes among the middle class, according to a report from Acclime Vietnam.Businesses Quickly Embracing Digital TransformationVietnam has undergone a significant technological transformation, with 87% of surveyed businesses implementing digital transformation. A survey by the Ministry of Planning and Investment shows an improvement in digital readiness across all sectors.Notable Trends in GenAI and SustainabilityGenerative Artificial Intelligence (genAI) is becoming increasingly popular, with 40% of Vietnamese financial organizations having adopted this technology. Additionally, smart industrial parks are emerging due to the integration of sustainable practices.Factors Driving GrowthThis growth is supported by a thriving startup ecosystem with around 3,800 businesses, as well as a shift towards e-commerce and digital financial services, especially following the COVID-19 pandemic.Impressive Growth in FintechThe fintech sector is booming, with 32.77 million active e-wallets and a significant increase in online and mobile payment transactions. From 2013 to 2023, $1.04 billion was invested in payment fintech startups in Vietnam. Recently, NextBold Capital announced plans to raise a $100 million fund to support small and medium-sized enterprises in the region.Investment Capital by Sector in Vietnam, Source: Do Ventures, NIC, and Cento Ventures, 12/2023Source: fintechnews.vn

Vietnam has made notable strides in innovation, rising two positions to rank 44th in the 2024 Global Innovation Index (GII) report released by the World Intellectual Property Organization (WIPO) in Geneva on September 26. Within ASEAN, Vietnam ranks 4th, following Singapore, Malaysia, and Thailand.The World Intellectual Property Organization releases the Global Innovation Index report. Photo: WIPOThis year, Vietnam saw substantial improvements in both innovation input and output metrics. Specifically, the country rose 4 places in innovation input to rank 53rd and climbed 4 spots in innovation output to 36th. Notably, Vietnam is a world leader in High-Tech Imports, High-Tech Exports, and Creative Goods Exports, measured as a percentage of total trade.The GII 2024 report also recognized Vietnam as one of eight middle-income countries with the most significant ranking improvements since 2013. This achievement reinforces Vietnam's position as the second-most innovative lower-middle-income country, trailing only India.Minister of Science and Technology - Mr. Dat Huynh stated that this success reflects the government’s decisive direction and the dedicated efforts of ministries, local authorities, and the business community. This ranking advancement not only boosts Vietnam's competitiveness but also opens substantial opportunities for the country on the global stage.Source: Vietnam.net

Vietnam's manufacturing sector is increasingly reliant on artificial intelligence (AI) and digital transformation to drive growth and competitiveness, as outlined in Zebra Technologies Corporation's 2024 Manufacturing Vision Study. The study highlights that 46% of manufacturers in the Asia Pacific (APAC) region expect AI to spur growth by 2024, rising to 68% by 2029. This rapid surge underscores the crucial role of AI in enhancing productivity and improving quality in manufacturing processes.Challenges in Adopting Digital TechnologiesManufacturers face big challenges when trying to adopt digital technologies. Globally, 30-40% of those surveyed say the main problems are high labor costs, a lack of skilled workers, and difficulties in combining information technology (IT) with operational technology (OT). In the Asia Pacific region, these challenges are even greater due to the sector's rapid expansion and the need for continual reskilling of the workforce.Vietnam’s Ambitious Manufacturing GoalsVietnam's government has set ambitious goals for its manufacturing sector, targeting a 30% contribution to GDP and an annual labor productivity growth rate of 7.5%. With the manufacturing sector expected to grow by more than 8.5% per year, adopting AI and other advanced technologies is critical. FDI has been pivotal, with the sector attracting $20 billion in 2023, accounting for over 60% of Vietnam’s total FDI. This influx has strengthened Vietnam's position as a manufacturing hub, particularly in electronics and textiles.Real-Time Data and AI IntegrationThe report emphasizes that real-time data visibility is key to driving digital transformation in manufacturing. By integrating AI-powered analytics, manufacturers can enhance data management, track performance, and address issues immediately. This allows for better decision-making, predictive maintenance, and quality control, leading to greater efficiency and reduced downtime.ConclusionIn conclusion, Vietnam's manufacturing sector stands at a crucial juncture, where embracing AI and digitalization will be essential for sustaining growth and competitiveness. With global and regional manufacturers increasingly prioritizing these technologies, Vietnam’s push towards a digitally-enabled manufacturing environment is expected to play a critical role in achieving the sector's ambitious growth targets.Source: Vietnam Economic News

Vietnam is prioritizing the development of its semiconductor industry by attracting investment from foreign companies, especially those from the United States. Both countries have agreed to cooperate in innovation and see the semiconductor sector as a key pillar in their partnership.The U.S. government has committed to supporting Vietnam in building a semiconductor ecosystem, including the establishment of two training centers in Ho Chi Minh City and Hanoi to train tens of thousands of semiconductor engineers. Vietnam is also actively collaborating with the U.S. on OECD semiconductor initiatives to deepen its integration into the global supply chain.Minister of Planning and Investment Dung Nguyen emphasized that this initiative marks the start of an internationally standardized training program that will enhance Vietnam’s technological capacity in the semiconductor field. With its rapidly growing digital economy, young workforce, and modern infrastructure, Vietnam is becoming an increasingly attractive destination for major technology corporations.Minister of Planning and Investment Dung Nguyen. Photo: NIC.Minister Dung highlighted that U.S. investment and support are vital to unlocking a prosperous future for both nations. To meet the goal of training 50,000 semiconductor engineers by 2030, Vietnam is rolling out numerous training programs at universities, in collaboration with a wide range of partners.Source: Vietnam.net

During his visit to South Korea on August 1-2, Minister Hung Nguyen led a delegation from Vietnam’s Ministry of Information and Communications (MIC) to meet with key South Korean agencies, including the Ministry of Science and ICT (MSIT) and the Digital Platform Government Committee. The discussions covered in-depth digital strategies and cutting-edge technologies like AI in semiconductors and large-scale AI computation, with both sides sharing a vision for growth in the era of artificial intelligence.The meeting between Vietnam’s Ministry of Information and Communications and South Korea’s Ministry of Science and ICT. Photo by Khanh Van - TTXVN.Vietnam is making significant strides in information and communications technology, with a particular emphasis on AI, and highlighted the importance of international cooperation in developing a skilled workforce. At the meeting, the two ministers pledged to deepen cooperation in AI research and development as well as in semiconductor technology.As part of the visit, Minister Hung toured Seoul Cyber University, where he attended the opening ceremony of a joint training office with Vietnam’s Posts and Telecommunications Institute of Technology—an achievement that underscored the strong partnership between the two institutions. He also participated in the 2024 Vietnam-Korea Digital Forum, creating opportunities for Vietnamese ICT companies to connect and explore partnerships in South Korea.Minister Hung met with Vietnamese students in South Korea, sharing insights into Vietnam’s ICT sector development and encouraging them to contribute to the nation’s growth through technology. The visit strengthened Vietnam-South Korea relations and opened promising new avenues for collaboration in technology and workforce training.Source: vietnam.vnanet.vn