Vietnam's decades-long growth model delivered remarkable success. But as global competition changes, the country now faces a more fundamental challenge - creating its own competitive advantage.

Experts believe Vietnam can accelerate its semiconductor ambitions by prioritizing practical chip designs instead of competing immediately in the most advanced manufacturing nodes.

Vietnam's semiconductor ecosystem now comprises around 60 chip design companies, some 7,000 chip design engineers and 166 universities offering semiconductor-related training programmes.

Ho Chi Minh City is shifting its investment strategy from prioritising volume to attracting high-quality, high-impact technology projects, with a focus on semiconductors, artificial intelligence (AI), data centres and research and development (R&D).

The central Vietnamese city sees semiconductors and AI as pillars of future growth, yet talent development continues to lag behind industry demand.

LG Innotek has announced a plan to build its first semiconductor substrate plant in Vietnam, marking a significant step in expanding its production capacity and strengthening its semiconductor packaging solutions business.

The global shift in high-tech supply chains is positioning Vietnam as an increasingly important link in the semiconductor ecosystem, accompanied by rising demand for advanced analytical and precision calibration equipment.

Amid rapid advances in artificial intelligence and digital technologies, global demand for semiconductors is soaring, creating both opportunities and competition pressure.

With an increasingly complete policy framework, expanding investment inflows and a structured human resource development strategy, the semiconductor industry is expected to become a strategic technological pillar of Vietnam in the coming period.

Deputy Minister of Science and Technology Bui Hoang Phuong said when domestic companies participate in the supply chain from design to production to packaging, Vietnam will gradually be able to lay the foundation to master semiconductor technology.

With local companies now engaging in chip design, manufacturing and testing, Vietnam is laying the groundwork to become self-reliant in the semiconductor industry.

FPT officially enters the chip race with Vietnam’s first advanced semiconductor packaging and testing plant, following Viettel’s groundbreaking move earlier this month.

The Ministry of Science and Technology has announced the establishment of the National Center for Supporting Semiconductor Chip Trial Production. The decision outlines the center's functions, duties, authority, and organizational structure.

The ICOS 2026 conference gathers hundreds of researchers and professionals to discuss semiconductor innovation, challenges, and collaboration in Vietnam.

The centre will provide essential infrastructure and public services to support semiconductor design and prototyping as part of Vietnam’s broader industrial strategy.

Vietnam’s centralized digital technology zones are emerging as top economic contributors, delivering exceptional land-use value and productivity.

Vietnam is shifting from its traditional role in assembly and testing to a deeper integration into the global semiconductor value chain, as AI drives demand for advanced chips and reshapes the design, production, and management of smart factories.

According to Deputy Minister of Science and Technology Bui Hoang Phuong, Vietnam currently has more than 170 foreign-invested projects in the semiconductor industry, with a total registered capital of nearly $11.6 billion.

Political stability and labor costs help Vietnam shine, yet infrastructure and market uncertainty hold investors back.