According to Sputnik news, the chip semiconductor industry and the development of the microchip industry have become a fierce race between major countries. Vietnam began to enter the “semiconductor road” and gradually defended its position, with reasonable strategies and calculations.

Specifically, Sputnik (Russia) cited the comments of two Central Institute for Economic Management (CIEM) researchers Le Phan and Nguyen Hai Thanh posted to the East Asia Forum to comment on Vietnam’s progress in the global chip supply chain .

In it, the news mentioned that Samsung Electronics, the world’s largest DRAM supplier in 2021, is preparing for transistor grid production in Vietnam, investing USD 850 million to produce semiconductor components at Samsung Electro-Mechanics Vietnam plant.

At the same time, the company also plans to open a research and development center in Hanoi by the end of 2022 and early 2023, which will serve not only Vietnam but also Southeast Asia.

According to CIEM economists, this investment by Samsung will make Vietnam one of four countries, along with South Korea, China and the US, producing semiconductors for the world’s largest memory chip manufacturer.

The team emphasized at the East Asia Forum, “Vietnam’s choice over more developed locations speaks to the growing importance of this Southeast Asian country in the global semiconductor supply chain”.

In addition, the newsletter also analyzes to make it clear that Vietnam is not a new participant in the semiconductor industry. Since 1979, Vietnam has its first semiconductor factory, engaged in the production, research and development of semiconductor materials and components for export to Eastern European countries.

Two experts from CIEM explained that Vietnam’s technology and industrial development policy always gives the highest priority to high-tech projects. Incentives such as a reduction in corporate income tax, exemption from sales tax and exemption and reduction of land rent can be taken into account.

Another advantage of Vietnam compared to neighboring countries in the region is human resources, young technical talents with relatively lower costs. More than 40% of college and university graduates in Vietnam are studying science and engineering.

Vietnam is among the top 10 countries with the most engineering graduates. Vietnam also prides itself on being one of the world’s leading open economies, with 15 Free Trade Agreements (FTAs) with other countries, an improving business environment and a relatively stable government with clear socio-economic development plans.

@ Cafe



Source: Vietnam Insider

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