Vietnam has traditionally focused on assembly, testing, and packaging in the semiconductor sector. However, with the Prime Minister's Decision No. 1018/QĐ-TTg (Decision 1018) , dated September 21, 2024, the country is set to revolutionize its semiconductor industry.

The Strategy for the Development of Vietnam's Semiconductor Industry, approved by Decision No. 1018, aims to establish at least 300 design enterprises, three semiconductor chip manufacturing plants, and 20 semiconductor product packaging and testing plants by 2050. This ambitious goal aspires to position Vietnam as a global leader in the semiconductor industry.

Domestic giants such as FPT, Viettel, and CMC are investing heavily in integrated circuit design, paving the way for innovations beyond traditional manufacturing.

Advances in packaging and testing technologies are bolstering Vietnam’s role in the semiconductor supply chain. Notably, in 2023, Vietnam was the third-largest exporter of semiconductors to the United States, with a total export value of $562 million, following Malaysia and Taiwan (China).

The Semiconductor Industry Association (SIA) estimated that  semiconductor industry revenue worldwide would reach $588.4 billion in 2024, with projections suggesting an increase to $654.7 billion in 2025.

The SIA highlighted that the semiconductor industry is concentrated in countries and territories that excel in specific stages of production. For instance, the US and the EU focus on design, South Korea, Japan, and Taiwan (China) lead in manufacturing, while mainland China and Vietnam specialize in assembly and testing.

According to the Ministry of Information and Communications, Vietnam’s semiconductor industry revenue in 2024 is estimated at $18.23 billion, reflecting an 11.5% growth, mirroring the global average growth rate.