Vietnam's strategic location, modernizing infrastructure, and young, tech-savvy workforce position it as a rising contender in the semiconductor industry. This potential was highlighted at the recent press conference announcing the "Vietnam Innovation Challenge 2024."

To attract investment, the Vietnamese government has been updating its policies to create a business-friendly environment. The country seeks to further integrate itself into the global semiconductor supply chain and promote technological development. The Southeast Asia Semiconductor Industry Association (SEMI SEA) projects Vietnam's semiconductor market to expand by over 6% between 2022 and 2027.

Alongside semiconductors, Vietnam is making strides in the artificial intelligence (AI) sector, a cornerstone of the Fourth Industrial Revolution. Deputy Minister of Planning and Investment Tran Duy Dong emphasized the country's need to seize opportunities in both AI and semiconductors. International interest proves the point – major investors from countries like Japan and the US are pouring billions of US dollars into Vietnam's technology sector.

The Deputy Minister added that the rapid technological development, driven by the semiconductor industry, was vital for modern industrialization.

Progress in AI is further demonstrated by Vietnam's improved global ranking in the AI readiness index, rising seven places in 2022. Domestic companies including FPT, Viettel AI, VNPT AI, and VIN AI have made significant achievements in AI research and application, showcasing the expertise of Vietnamese engineers.

New projects, like Amkor (US) Group’s investment in Bac Ninh and Siemens Electronic Design Automation Company's involvement in semiconductor training, reflect international tech corporations' growing interest in Vietnam.

Rafael Frankel, Director of Regional Public Policy, Southeast Asia for Meta Group, believes Vietnam has significant potential in AI and could become a regional leader. To achieve this, he suggests maintaining existing advantages, embracing an open mindset to innovation, and positioning Vietnam as an attractive destination for global tech companies.

Meta is supporting the Vietnam Innovation Challenge 2024 to promote ideas and opportunities in AI and semiconductors. "This initiative will strengthen Vietnam's integration into the global digital economy," Frankel said. The program targets innovative large enterprises, SMEs, and startups, with $300,000 in total prizes. Its goal is to raise awareness of these crucial industries, connect Vietnamese businesses in need of upgrades, and elevate Vietnamese enterprises' global competitiveness.