Value chain gap and core technology challenge

Amid global supply chain restructuring, the semiconductor industry is emerging as a strategic pillar. Far from merely supporting artificial intelligence, smart manufacturing, and the digital economy, semiconductors reflect a nation’s technological autonomy and standing in global value chains.

While major tech corporations are expanding their presence in Vietnam across assembly, testing, and chip design, the country remains concentrated in low-value segments like assembly, testing, and packaging. Key stages such as chip design and wafer fabrication still rely heavily on foreign enterprises.

Nguyen Van Thao, former Director of the National Innovation Center (NIC), said Vietnam holds opportunities from shifting supply chains, but moving deeper into the chain requires developing design capabilities and core technologies. Moving up to higher-value segments demands substantial capital, synchronized R&D infrastructure, and technological mastery-areas Vietnam is still refining.

At an international seminar on semiconductor knowledge exchange in Hanoi, experts agree that Vietnam stands before an opportunity to join the industry. Assoc. Prof. Huynh Quyet Thang, President of Hanoi University of Science and Technology, emphasized that semiconductors serve as the foundation for key industries.

Semiconductor capability measures national competitiveness and strategic autonomy, Thang says, adding that entering the sector is an essential requirement for Vietnam’s digital breakthrough. He notes that as multinational corporations seek destinations beyond traditional hubs, the nation emerges as a potential destination due to its political stability, young workforce, and adaptability.

Human resource shortages and ecosystem fragmentation

Despite these factors, the country’s high-value engagement in microchip design and R&D remains limited. The country faces workforce constraints in both quantity and quality. Training programs lag behind corporate demand, lacking practical application and updated technologies.

It lacks not only microchip design engineers but also specialized research teams, experienced lecturers, and standardized laboratory systems.

Furthermore, semiconductor development requires a complete ecosystem connecting businesses, research institutes, and universities. In Vietnam, these linkages remain fragmented. Experts say that attracting semiconductor investment requires a stable policy environment and a strong supporting ecosystem, rather than just cost advantages or tax incentives.

Administrative execution also requires improvement, ranging from intellectual property protection to faster, more flexible investment procedures. In a competitive environment, the opportunity for Vietnam will not last indefinitely.

During a working session with the Southeast Asia Semiconductor Industry Association (SEMI SEA), Deputy Minister of Science and Technology Le Xuan Dinh affirms that Vietnam viewed semiconductors as a strategic industry and seeks stronger international cooperation in policy, human resources, infrastructure, and ecosystem development.

"As the advisory body to the government on semiconductor industry development, the Ministry of Science and Technology is focusing on refining policies and building the necessary foundations to develop a semiconductor ecosystem," Dinh stated.

Vietnam’s semiconductor ambitions are grounded in reality, but realizing them requires a comprehensive strategy and decisive action. Resolving bottlenecks in core technology, ecosystem development, and policy alongside the human resource challenge will determine whether Vietnam can elevate its position in the global semiconductor value chain over the coming decade.

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