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Previously, as the US-China relationship became increasingly tense and showed signs of cracks, the US planned to shift supply chains to emerging markets to diversify suppliers. At the time of the Covid-19 outbreak, the US was even more certain of its decision, applying the "China + 1" strategy, meaning expanding factories outside Chinese territory to minimize dependence on a single production facility. And Vietnam is a promising candidate for the US' shift plan.
US President Joe Biden's visit to Vietnam last July further solidified Vietnam's position in the eyes of big corporations, opening up many investment opportunities for US technology empires in Vietnam. The US upgraded its relationship with Vietnam to a comprehensive strategic partnership, meeting US market needs while strengthening Vietnam's industrial network. Corporate leaders announced promising investment projects in Vietnam such as AI projects by Nvidia and Microsoft companies; Plans to build new semiconductor design centers in Ho Chi Minh City by Synopsys and Marvell; Amkor's $1.6 billion chip packaging plant opening plan in Bac Ninh in October 2023...
US companies all have long-term global strategies when investing in a particular country. Recognizing Vietnam's potential for economic development, combined with its geographical and political stability, in March 2023, representatives of 50 major US groups visited Vietnam to seek investment opportunities, including "golden faces" in the technology world like Apple, Google, Meta, Microsoft,... With the help of industry giants, Vietnam promises to change the situation and become a potential country developing the semiconductor industry.
Vietnam received a lot of attention and expectations from US corporations, a trusted land for them to diversify manufacturing supply chains, especially in artificial intelligence, semiconductors,... Major international corporations like LG, Samsung, Foxconn - which are suppliers for "King of Technology" Apple, have built factories in Vietnam. In addition, Vietnam is now the site of Intel's largest assembly and testing plant - the leading US semiconductor manufacturer at the Hi-Tech Park in Ho Chi Minh City. The company has increased its investment in this project to $1.5 billion and is planning to invest more to expand its plant in Vietnam. In the future, Vietnamese enterprises may become semiconductor component suppliers for major players like Foxconn, Luxshare, gradually participating in the global value chain.
Mr. Nguyen Anh Tuan, Deputy Head of the Foreign Investment Agency said: "The most important thing when US investors come to Vietnam at this time is how Vietnamese enterprises can be more present in their manufacturing supply chains. How Vietnamese enterprises can become important partners of US groups, effectively participating in their value chains, especially in backbone industries of the world economy such as high-tech, semiconductors, renewable energy."
In addition to US President Joe Biden's visit, Prime Minister Pham Minh Chinh also visited the United States, expressing his desire for long-term cooperation and mutual benefits with the United States. During this trip, the Prime Minister met and worked with many famous technology companies worldwide such as Synopsys, Meta, Nvidia... The US strongly supports and is willing to help Vietnam develop the semiconductor industry, transfer advanced technology, train a quality workforce that can meet high requirements.
Also during this trip, Prime Minister Pham Minh Chinh visited Silicon Valley and witnessed the signing ceremony of cooperation between the Ministry of Information and Communications and Synopsys Company to promote the development of the semiconductor industry Establish a semiconductors research institute in Vietnam. This cooperation aims to draft a strategy to establish an advanced R&D production and modeling center, foster semiconductor startup companies, and support Vietnam's R&D manufacturing capabilities.
Attracting huge investment capital from the US opens up golden opportunities for Vietnam, but it is also a great challenge for Vietnamese enterprises. Technology requires a highly skilled workforce, especially talented engineers in integrated circuits, production infrastructure must have modern equipment, stable electricity, and use green energy friendly to the environment. But within difficulty lies opportunity, and pressure creates diamonds. Although still new to Vietnam, the semiconductor industry promises to become one of Vietnam's key industries, contributing greatly to national GDP, if invested properly. In addition, when the US invests in us, it also boosts confidence from other investors in countries interested in investing in the Vietnamese market. This gives Vietnam a certain standing in the international market, improving competitiveness with major global competitors.