These bodies are Ministry of Planning and Investment, Ministry of Information and Communications, Ministry of Education and Training, and Ministry of Science and Technology.

Several Vietnamese companies have already made progress in researching and developing semiconductors. State-owned telecommunications giant Viettel sought permission from the government to research, design, and manufacture semiconductors for both domestic needs and export. Tech giant FPT launched its first semiconductors designed for medical use last year.

Director of FPT Semiconductor Nguyen Vinh Quang said in 2022 FPT Semiconductor designed and manufactured three lines of source chips and inked the first contract for 25 million chips in 2024 and 2025 with its partners.

"FPT is working on an order of 2 million chips for a Japanese client. It is expected that in 2023 FPT will have seven new chip lines. In early 2024, FPT Semiconductor will continue to design and manufacture IoT platform chips for smart device applications for the agriculture, forestry, and seafood processing industries," said Nguyen.

A number of global semiconductor manufacturers are increasing their presence in Viet Nam, making the Southeast Asian country a rising star in the world semiconductor market.

South Korea's Hanmi Semiconductor, one of the world-class leading manufacturers of semiconductor equipment, announced at the end of May that its branch, based in the northern province of Bac Ninh, was officially put into operation.

Kwak Dong-shin, CEO at Hanmi Semiconductor, was quoted by Viet Nam Investment Review newspaper as saying that: "We believe that Viet Nam is emerging as a production hub for many semiconductor manufacturers."

In early June 2023, Infineon Technologies AG, Germany's largest company specialising in semiconductor solutions for power and IoT systems, announced the expansion of its operation in the Southeast Asian country, together with the establishment of a chip development team in Ha Noi.

C. S. Chua, president and managing director of Infineon Technologies Asia Pacific, was quoted by the newspaper that with a population of around 100 million and a young population structure, Viet Nam was turning into a key market and destination for multinational co-operations to search for technical talents.

According to market research company Technavioa, the semiconductors market in Việt Nam was estimated to grow at a compound annual growth rate of 6.12 per cent between 2022 and 2027. The size of the market was forecast to increase by US$1.65 billion.

Technavio's report pointed out that the growing number of smartphone users was driving market growth. To meet the growing demand for smartphones, manufacturers in the region would open more factories in the country. About 40 different mobile phone brands, including Sony and Samsung, were exported from Viet Nam.

The market was also seeing an emerging trend of smart homes with devices such as cameras, sensors, control systems, mobile devices and automation systems which required semiconductors to function.

Statistics of the Ministry of Information and Communications showed that Viet Nam's chip industry earned revenue of US$562.5 million from exporting to the US in 12 months ending in February, a rise of 74.9 per cent against the previous same period.

This meant that Viet Nam accounted for 10 per cent of semiconductor chip exports to the US in the period, ranking third after Malaysia and Taiwan.

However, the lack of availability of skilled labour is a major challenge impeding market growth, according to the report./.VGP