The new plan, consisting of three phases, outlines the development of the Vietnamese semiconductor supply chain from 2024 to 2050.  

A recently published article by the Vietnamese government highlights the country’s strategy and vision for developing domestic semiconductor production. On 21 September, Prime Minister Pham Minh signed Decision No. 1018/QD-TTg, which defines a clear plan to construct three manufacturing plants and 20 packaging and testing facilities across the country by 2050.  

The Vietnamese government has split the strategy into three phases. Phase 1 (2024–2030) will focus on foreign direct investment (FDI). The government will leverage Vietnam’s geographical advantages and economic strengths as more attractive than other alternatives for FDI. Its proximity to established producers in China, India, and Taiwan gives it access to critical materials and technology. Furthermore, Japan-based Tokuyama recently signed an agreement with Thanh Binh Phu My JSC to build a polysilicon manufacturing facility at the Phu My 3 Industrial Park in Ba Ria-Vung Tau. This will be essential for establishing the local production of raw materials necessary for chip manufacturing. 

Phase 2 (2030–2040) aims to establish Vietnam as a main centre for the semiconductor and electronics industries by combining self-reliance with FDI to promote industrial development. During this phase, two manufacturing plants and 15 packaging and testing facilities are expected to enter production. Phase 3 (2040–2050) will conclude with the development of one additional manufacturing facility and five more packaging and testing facilities.  

While the Vietnamese government’s ambition to establish the country as a key player in the electronics industry may face some challenges, the country does not necessarily need to compete with manufacturing giants, such as Taiwan, China, or the USA, as its potential is related to its favourable geographical landscape. Key industry producers, such as Amkor, ASE, Intel, and Samsung Electronics, have already identified this potential. 

However, the country will need to secure the intensive infrastructure requirements that semiconductor manufacturers require, such as consistent electrical power and talent acquisition and retention.