Vietnam Aims for Deeper Integration into Global Semiconductor Value Chains

Vietnam is set to deepen its integration into global semiconductor value chains. Nguyen Anh Tuan, Director of the National Centre for Pilot Semiconductor Chip Manufacturing Support under the Ministry of Science and Technology, emphasized that in the face of increasingly intense global technological competition, the semiconductor industry serves not only as a high-value-added economic sector but also as a foundation for technological self-reliance, national security, and economic competitiveness. This move is seen as part of Vietnam's strategy to establish a strong presence in high-tech industries, particularly semiconductors, as it continues its rapid economic growth. Historically, Vietnam has leveraged its cost competitiveness in manufacturing to play a role in the lower-end of the value chain, such as assembly and packaging. However, the country may now be looking to advance into higher-end processes like design and manufacturing, which require more sophisticated technology. Recent global events, especially heightened geopolitical risks, have underscored the need for supply chain stabilization and diversification. In this context, Vietnam aims to become a key player in the semiconductor supply network by strengthening cooperation with technologically advanced nations while avoiding over-reliance on China. The commencement of key material production by Japanese firms and recommendations from Japanese experts to prioritize chip manufacturing and packaging support this trend. Under its one-party system, Vietnam tends to strongly promote industrial policies based on national strategies. The focus on the semiconductor industry is likely to be driven by the government as part of its long-term national development plan. If this strategy proves successful, it could accelerate Vietnam's economic structural transformation and promote a shift towards higher value-added industries.