On August 26, Vietnamese Prime Minister Pham Minh Chinh signed a government decree on “Strengthening the Training of High-Quality Human Resources in the Fields of Semiconductor Chips, Artificial Intelligence, and Cloud Computing.” The decree states that to achieve new breakthroughs in high-quality human resource training in the era of Industry 4.0, ministers, heads of government agencies, and chairpersons of provincial and municipal people’s committees must fulfill their respective duties to enhance the cultivation of high-quality talent in the fields of semiconductors, artificial intelligence, and cloud computing.

Currently, with the rapid development of artificial intelligence, the demand for chip technology engineers is continually increasing. Many companies are turning their attention to Vietnam, which has become a “magnet” attracting semiconductor industry giants due to its human resource and cost advantages. From initially being a simple low-end assembly base to gradually climbing towards higher value-added segments, Vietnam’s semiconductor industry is undergoing rapid transformation and upgrading, urgently needing to accelerate the filling of semiconductor talent gaps.

Current Status of Vietnam’s Semiconductor Industry

According to the World Semiconductor Trade Statistics Association’s forecast, the global semiconductor market size is expected to reach $588.4 billion in 2024, an increase of about 13% compared to 2023. Against this backdrop, Vietnam’s semiconductor industry is poised for rapid growth, projected to increase from $17.24 billion in 2023 to $26.2 billion in 2027.

Vietnam accounts for approximately 5-7% of the global semiconductor packaging and testing market. Major international players include multinational companies such as Intel, Samsung, and Toshiba, which have established large production bases in Vietnam, primarily engaged in chip packaging and testing. For example, Intel’s $1.5 billion factory in Ho Chi Minh City is one of the world’s largest semiconductor packaging and testing bases. Samsung Electronics has also invested in establishing large-scale production bases in Vietnam, not only producing smartphones but also venturing into semiconductor component production. Foreign investment plays a crucial role in Vietnam’s semiconductor industry, bringing capital and technology while helping to cultivate a large number of local talents.

Some domestic enterprises such as FPT Semiconductor and Viettel High Technology are also actively developing, striving for breakthroughs in design and manufacturing. In terms of regional distribution, Vietnam’s semiconductor industry has initially formed a clustering effect. The Ho Chi Minh City area and its surroundings are the most important industrial clusters, gathering multiple international semiconductor companies including Intel. Additionally, Hanoi and Da Nang are actively developing high-tech parks to attract semiconductor-related investments. This geographical distribution is conducive to forming industrial agglomeration effects, promoting technological exchange and talent flow.

High-End Talent Shortage in the Semiconductor Industry

According to Vietnam’s semiconductor industry development plan, the country aims to become an important semiconductor production base in Southeast Asia by 2030. If Vietnam wants to become a strong chip manufacturing country, cultivating and attracting high-level talent is a long-term challenge it faces in the future. Currently, Vietnam has about 5,000 engineers working in the microchip design field, with the majority of human resources concentrated in Ho Chi Minh City (85%), Hanoi (8%), and Da Nang (7%). According to a report from the Vietnamese Ministry of Information and Communications, the information technology and digital industry in Vietnam requires approximately 150,000 engineers annually, but currently can only meet 40% to 50% of this demand. Among these, the semiconductor industry annually requires up to 100,000 engineers, but currently can only meet less than 20% of the demand. Additionally, five universities in Vietnam have added semiconductor and chip design courses, but due to relatively low salary levels, there is still a risk of high-end talent outflow. resource training in the chip industry was also a focus of discussion between the U.S. President and the Vietnamese Prime Minister during the former’s visit to Vietnam. To date, the U.S. government has pledged $2 million to support semiconductor workforce development, as well as programs related to semiconductor assembly, testing, and packaging technology teaching and laboratories. Furthermore, to address this issue, Vietnam plans to pilot breakthrough mechanisms and policies to attract experts and scientists from developed countries to transfer knowledge, thereby helping Vietnam quickly improve its technological capabilities and directly and rapidly enter high value-added segments of the electronics and semiconductor industry value chain.

Government Decree on Talent Cultivation Issued

On August 26, the Vietnamese government issued Document No. 83/CĐ-TTg on strengthening high-quality human resource training in the fields of semiconductor chips, artificial intelligence, and cloud computing, requiring ministers, heads of government agencies, and chairpersons of provincial and municipal people’s committees to focus on the following key tasks:

1.Ministry of Education and Training

Direct higher education institutions to research and establish specialized units (schools, faculties, departments, etc.) for key talent cultivation in fields such as semiconductors, artificial intelligence, and cloud computing; guide higher education institutions to re-examine and innovate curricula; develop training plans for lecturers, researchers, and students in the fields of semiconductors, artificial intelligence, cloud computing, etc.; strengthen the application of science and technology, especially artificial intelligence, in teaching; promote industry-academia collaboration and international cooperation in the fields of semiconductors, artificial intelligence, cloud computing, etc.; urgently complete and propose to the Prime Minister for approval a high-quality human resource training project serving high-tech and basic industry development; draft a directive for the Prime Minister on guiding, directing, and promoting human resource training in the fields of semiconductors, artificial intelligence, and cloud computing.

2.Ministry of Planning and Investment

Urgently complete and submit to the Prime Minister for approval the “Proposal for Human Resource Development in the Semiconductor Industry by 2030 and Vision to 2050,” which includes content on artificial intelligence and cloud computing; promote the formation and development of ecosystems, innovation centers, incubators, and innovation networks in the fields of semiconductors, artificial intelligence, cloud computing, etc.

3.Ministry of Science and Technology

Proactively review and prioritize scientific research projects related to talent cultivation and education in higher education institutions in the fields of semiconductors, artificial intelligence, cloud computing, etc.; lead and cooperate with relevant ministries to study and improve special mechanisms and policies to attract talent, especially in the fields of semiconductors, artificial intelligence, cloud computing, etc.

4.Ministry of Information and Communications

Urgently complete and submit to the Prime Minister for approval the “Vietnam Semiconductor Industry Development Strategy to 2030 and Vision to 2050”; proactively develop strategic implementation plans prioritizing the development of big data computing centers to support higher education institutions in cultivating high-quality talent in the fields of semiconductors, artificial intelligence, cloud computing, etc.

5.Various Ministries

Support universities and institutions in cultivating high-quality talent in various fields, especially in semiconductor chips, artificial intelligence, cloud computing, etc. Provincial and municipal people’s committees need to actively conduct investment promotion activities to develop the fields of semiconductors, artificial intelligence, cloud computing, etc.; strengthen cooperation between the state, universities, and enterprises to improve training efficiency in the fields of semiconductors, artificial intelligence, and cloud computing; provide support for high-quality talent cultivation in high-tech fields such as semiconductors, artificial intelligence, and cloud computing.

Outlook

Overall, Vietnam has multiple advantages in developing the semiconductor industry, including its unique geographical location, active international economic and trade relations, abundant labor resources, strong policy support, and gradually forming industrial foundation. These factors collectively constitute favorable conditions for the development of Vietnam’s semiconductor industry. If Vietnam can fully utilize these advantages and overcome challenges such as technical talent shortages, with the gradual improvement of the industry chain, Vietnam has the potential to become an important member of the global semiconductor industry in the future.

The issuance of the “Government Decree on Strengthening High-Quality Human Resource Training in the Fields of Semiconductor Chips, Artificial Intelligence, and Cloud Computing” marks the Vietnamese government’s high regard for semiconductor industry development. This decree will not only promote talent cultivation but also have a profound impact on the entire industry chain. If effectively implemented, it will lay a solid talent foundation for the long-term sustainable development of Vietnam’s semiconductor industry, propelling Vietnam to occupy a more important position in the global semiconductor industry landscape.

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