Vietnam’s Bid to Exploit US-China Chip Tensions: Labour Hurdles Ahead

Lilu Anderson
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Vietnam’s Chip Ambitions Blossom with Foreign Investment Boost

Vietnam is making remarkable strides in its ambition to become a key player in the global semiconductor supply chain, as it attracts a significant influx of foreign capital. The government is now set to roll out dedicated programs aimed at boosting the number of semiconductor engineers in the country. In a bid to attract chip investment, Vietnam’s Prime Minister recently journeyed to Silicon Valley, where he engaged with officials from semiconductor giants Synopsys and Nvidia.

Highlighting its determination to welcome investment and promote research in the sector, Vietnam’s Ministry of Science and Technology announced tax incentives for high-value-added products like semiconductors. This move reflects the increasing efforts worldwide to diversify semiconductor supply chains, particularly in light of escalating geopolitical tensions with China.

Vietnam does face challenges on its path to semiconductor leadership, including a limited pool of skilled labor and energy insecurity. According to the US-ASEAN Business Council, Vietnam will need to increase its number of semiconductor engineers. The nation remains optimistic about fulfilling its goals, with strengths in mathematics and science and established semiconductor training programs in technical universities.

A recent visit by US officials demonstrated the American government’s support for Vietnam’s semiconductor industry. South Korean firms, including Samsung, are heavily investing in Vietnam’s semiconductor sector, intensifying competition alongside Malaysia, Singapore, Indonesia, and Thailand.

Energy insecurity presents a significant challenge for Vietnam, with recent blackouts disrupting operations and revealing heavy reliance on hydropower and outdated infrastructure. Addressing energy and environmental challenges is essential to instill confidence in European investors cautious due to stringent carbon emission regulations. Only by overcoming these obstacles can Vietnam realize its semiconductor aspirations.

Analyst comment

Positive news: Vietnam’s Chip Ambitions Blossom with Foreign Investment Boost

As an analyst, I predict that the market for semiconductors in Vietnam will experience significant growth due to the country’s attracting foreign investment and implementing dedicated programs to boost the number of semiconductor engineers. The tax incentives announced by the Ministry of Science and Technology will further enhance Vietnam’s appeal for chip investment. However, the market’s success will depend on overcoming challenges such as the limited pool of skilled labor and energy insecurity. Collaboration with countries like the US and investments from firms like Samsung will intensify competition but also strengthen Vietnam’s semiconductor industry. Addressing energy and environmental challenges will be crucial in attracting European investors.

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Lilu Anderson is a technology writer and analyst with over 12 years of experience in the tech industry. A graduate of Stanford University with a degree in Computer Science, Lilu specializes in emerging technologies, software development, and cybersecurity. Her work has been published in renowned tech publications such as Wired, TechCrunch, and Ars Technica. Lilu’s articles are known for their detailed research, clear articulation, and insightful analysis, making them valuable to readers seeking reliable and up-to-date information on technology trends. She actively stays abreast of the latest advancements and regularly participates in industry conferences and tech meetups. With a strong reputation for expertise, authoritativeness, and trustworthiness, Lilu Anderson continues to deliver high-quality content that helps readers understand and navigate the fast-paced world of technology.