Vietnam's Semiconductor Industry: A New Era of Growth

Vietnam's semiconductor industry is entering a new phase of development, fueled by increasing global demand for electronic devices and advanced technologies. Global semiconductor market is expected to reach $600 billion by 2025, and Vietnam's domestic revenue is projected to grow from $18.23 billion in 2024 to $31.39 billion in 2029, with an annual growth rate of 11.48%.  

In response, Vietnam’s government has outlined a comprehensive strategy to transform the country into a leading semiconductor hub by 2030, supported by favorable policies and investment incentives that attract international players and boost local enterprises. 

Key global companies, including Intel, Samsung, and Hana Micron, have established facilities in Vietnam, leveraging its potential in assembly, packaging, and testing. While Vietnam's strengths traditionally lie in these areas, the government’s strategy prioritizes developing high-value design capabilities, crucial for capturing a larger share of the semiconductor value chain.  

The plan aims to establish 100 design firms, build a small-scale chip fabrication plant, and develop 10 packaging and testing factories by 2030. This roadmap aligns with the shifting global semiconductor supply chain and positions Vietnam as a critical player in the industry. 

Local companies like FPT and Viettel have made notable strides in chip design and production, contributing to Vietnam's growing presence in the global value chain. Coupled with its competitive labor costs, stable geopolitical environment, and rising domestic demand for smart devices, Vietnam is poised to become a prominent destination for semiconductor growth, paving the way for sustainable industrial and technological advancement.