Short Report on Semiconductor in Vietnam

Short Report on Semiconductor in Vietnam

  • Total page: 4 pages
  • Format: PDF
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Overview

The semiconductor industry is on a growth trajectory, supported by government initiatives, abundant resources, and labor costs. While still in its early stages, it is establishing itself as a major regional player.

Institutions and Policies

Vietnam is shifting from broad high-tech promotion to a strategy specifically focused on semiconductors under a series of policies. The national roadmap outlined in Decision 1018/2024 presents the vision “C = SET + 1” (Specialized chips・Electronics・Talent+Execution), setting 2050 targets of over 100,000 engineers, 300 design and research companies, 3 fabs and 30 assembly plants, and annual sales of 100 billion USD. Complementary Decision 1017/2024 aims to cultivate 50,000 skilled personnel by 2030 (including 42,000 engineers and 15,000 design/research personnel). It targets establishing four national-level semiconductor research hubs (two in Hanoi, one in Ho Chi Minh City, and one in Da Nang), creating/upgrading 18 university research centers, training 1,300 faculty members (professors, etc.), upgrade 18 university laboratories, train 1,300 faculty members (including professors), and expand international exchange programs. The policy provides investors with a roadmap for growth. Companies focusing on chip design and EDA (Electronic Design Automation) can accelerate their launch by leveraging R&D support, talent development assistance, and collaboration with university research institutes. Meanwhile, companies engaged in assembly, testing, and packaging can improve their return on investment by combining support for production activities with joint funding for equipment investment. Market size of 21 billion USD by 2025 The semiconductor market grew by 18% from 2024 and by 49% over the past five years. It is projected to reach approximately 21 billion USD in 2025, continuing to expand at a compound annual growth rate (CAGR) of 10% from 2025 to 2029, and is expected to reach 31 billion USD by 2029.

From 2020 to 2024, integrated circuits (ICs) accounted for the majority of the market, 81% in 2020 and 85% in 2024. Other segments- optoelectronics (optical semiconductors), 6 Statista (2025) discrete semiconductors, and sensors/ actuators—remained flat or grew slightly, with their share of the overall market decreasing.

According to the Ministry of Planning and Investment (now merged with the Ministry of Finance), approximately 11.6 billion USD of 2024 sales supported by FDI companies investing in this sector. The 174 registered FDI projects primarily involve IC design, manufacturing, and assembly. Domestic companies currently play only a limited role in back-end processes.

Table of content

  1. Institutions and Policies
  2. Position in the Global Supply Chain
  3. Potential to Become a Regional Hotspot
  4. Challenges

Note

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