Why many American businesses are doubling their investments into Vietnam

Numerous businesses are poised to amplify their investments in Vietnam, underscoring the country’s pivotal role in the global supply chain, as per the American Semiconductor Association.

During a seminar convened by the Ministry of Planning and Investment on December 7 in Hanoi, Mr. John Neuffer, Chairman of the American Semiconductor Industry Association (SIA), emphasized the escalating demand for advanced semiconductor technology. To meet this need, collaborative efforts between nations, such as the US and Vietnam, are imperative to capitalize on emerging opportunities.

The SIA delegation’s visit to Vietnam featured industry giants including Intel, Marvell, Synopsys, Qualcomm, Ampere, and Infineon. Mr. Neuffer revealed that several of these companies have recently made substantial investments in Vietnam. For instance, Intel injected $1.5 billion since 2006 and is now embarking on the second phase of expanding its assembly and testing operations (ATM). Intel’s Ho Chi Minh City facility alone contributes over 70% of the company’s total ATM output, generating more than 7,000 jobs. Additionally, Amkor recently inaugurated a facility in Bac Ninh, while Marvell established a significant research and development (R&D) center in Ho Chi Minh City.

Mr. Neuffer remarked, “Many businesses are doubling their investments. This is a testament to Vietnam’s key and growing role in the global semiconductor supply chain.”

To fortify collaboration and bolster the semiconductor industry in Vietnam, Mr. Neuffer suggested that the country enhance its workforce. He recommended expeditiously achieving the goal of training 50,000-100,000 engineers and fostering competition to attract research and development (R&D) investments. Moreover, improving infrastructure, transportation networks, and implementing conducive trade policies were identified as key areas for development.

Photo: Olivier Ochanine

Minister of Planning and Investment Nguyen Chi Dung affirmed that Vietnam is actively preparing to welcome and collaborate with American businesses and investors in the semiconductor supply chain. The nation has implemented a one-stop mechanism, devised a project to cultivate semiconductor human resources by 2030, and established NIC Hoa Lac to facilitate investment projects in the semiconductor industry with preferential terms. The Minister highlighted that Power Plan VIII, approved by the Government, ensures a priority for a stable electricity supply for investment projects and aims to guarantee sustainable energy.

During the event, localities and the Hi-Tech Park Management Board committed to providing stable electricity and water supply tailored to the needs of semiconductor businesses. Mr. Nguyen Anh Thi, Head of the Management Board of Ho Chi Minh City Hi-Tech Park, affirmed that the city boasts a seamless ecosystem, highly qualified human resources, and a culture of innovation in the semiconductor chip industry.

Addressing human resources, Mr. Nguyen Van Phuc, Deputy Minister of Education and Training, stated that the number of students studying STEM has consistently risen in recent years, with 40 universities in Vietnam offering training in semiconductor-related fields. He expressed a desire for American businesses to collaborate closely with universities, design programs, facilitate student internships, and support the establishment of laboratories.