Vietnam Eyes Semiconductor Industry Growth Amid Digital Transformation Push

Vietnam has positioned the development of a domestic semiconductor industry as an important strategic priority, in line with Politburo's Resolution No. 57-NQ/TW on breakthroughs in science, technology, innovation, and national digital transformation. The resolution calls for stronger investment in shared digital infrastructure, particularly critical infrastructure, AI infrastructure, and high-performance connectivity, for the advancement of digital government. With electricity demand expected to rise sharply from 2026 onwards, coordination among government agencies, businesses, and international partners is essential to build an integrated energy ecosystem supporting long-term economic competitiveness. Vietnam has already deployed over 40,000 5G base transceiver stations (BTSs), providing coverage for about 92% of the population, making it one of the world's fastest countries in this regard. This is a significant advancement compared to many advanced economies, which typically take two to three years to extend 5G coverage to over 80% of their populations. July marked an important milestone in the country's digital transformation journey, with a series of new policies, strategies, and technical standards introduced to support the Law on Digital Transformation and speed up implementation nationwide. For instance, registering residence, applying for an e-Visa, obtaining an electronic identity account, or completing administrative procedures online are now more convenient, reflecting initial results of the Politburo's Resolution No. 57 and making it easier for foreigners to enter, live, and work in Vietnam. The ultimate goal for Vietnam in the semiconductor industry should not merely be to establish a presence, but to gradually master high-value, knowledge-intensive segments of the value chain and become a key link in the global semiconductor supply chain. This would provide a launch pad for strengthening the country's competitiveness in artificial intelligence, electronics, and the digital economy. Furthermore, Vietnam is focusing on talent development, with students from Hanoi University of Science and Technology, Viet-Hung Industrial University, and Swinburne Vietnam selected from over 800 applicants worldwide to participate in international science and technology events. Ho Chi Minh City is proactively building capacity for the quantum computing era, with a strong emphasis on developing young talent. The Vietnam Global Innovation Connect (VGIC) 2026 serves as a platform for dialogue among policymakers, enterprises, startups, investors, and the global Vietnamese expert community to transform knowledge, technology, and resources into practical initiatives and projects that contribute to the country's development. These initiatives highlight the importance of scientific and technological development for Vietnam to break out of the middle-income trap and achieve sustainable economic growth. The potential of AI to improve productivity and the focus on quantum technology development are also part of Vietnam's strategy for future competitiveness.