Vietnam aims to strengthen its semiconductor diplomacy by crafting a strategy to bolster the production of essential semiconductor products.
Doan Phuong Lan, the vice head of the Steering Committee for Economic Diplomacy under the Ministry of Foreign Affairs (MoFA), revealed that collaborative efforts are underway with various markets such as Belgium, Taiwan, and the US to advance Vietnam’s semiconductor industry. “For instance, Belgium is recognized for its expertise in digital technology and nano electronics, pivotal for the development of next-generation chips. Meanwhile, Taiwan is esteemed for its prowess in integrated circuit manufacturing, design, and packaging,” Lan explained.
Lan emphasized the importance for Vietnam to concentrate on developing specific semiconductor products rather than a wide array of products. Collaborative efforts are also in progress with Taiwan for training initiatives and with the US for packaging advancements.
Currently, Vietnam is collaborating with the Organisation for Economic Co-operation and Development to formulate and publish a report on the semiconductor ecosystem within the country.
Last September, Vietnam and the US established a new semiconductor partnership to fortify resilient semiconductor supply chains for US industries, consumers, and workers. This partnership was solidified through an agreement aimed at enhancing semiconductor supply chains, workforce, and ecosystem development. It formalizes the bilateral collaboration to enhance the capacity of Vietnam’s semiconductor ecosystem in support of US industries.
Through the International Technology Security and Innovation Fund established by the CHIPS Act of 2022, the US will collaborate with Vietnam to further develop the latter’s semiconductor ecosystem, regulatory framework, and address workforce and infrastructure needs.
According to a statement from the White House, the US acknowledges Vietnam’s potential to play a crucial role in constructing resilient semiconductor supply chains, particularly in expanding capacity with reliable partners where it cannot be domestically reshored, and in promoting manufacturing and industry development domestically under the US CHIPS Act.
Figures from the Ministry of Planning and Investment (MPI) indicate that as of February 20, total US registered investment capital in Vietnam reached nearly $11.83 billion across almost 1,340 valid projects, positioning the US as the 11th largest foreign investor in Vietnam. Bilateral trade between Vietnam and the US has surged from $450 million in 1995 when diplomatic relations were established to $110.6 billion last year. In the first two months of this year, it reached approximately $15 billion.