Leading state-owned mobile operators Viettel, VNPT, Mobifone, and GTEL are expected to take a pioneering role in the research of semiconductor chips.

The objective is part of the directive signed off by Prime Minister Pham Minh Chinh on February 22 on enhancing efficiency and promoting investment in major state-owned corporations.

Electronic components are produced at Bac Ninh Industrial Park. Photo: Viet Dung/The Hanoi Times

In this regard, Chinh tasked state-owned enterprises with spearheading innovation, digital transformation, and economic recovery. Specifically, conglomerates and telecommunications corporations are to accelerate investment projects and expand infrastructure, platforms, and digital applications to develop the digital economy.

In particular, he asked Viettel Military Industry and Telecoms Group (Viettel), VNPT, Mobifone, and the Global Technology-Telecommunications Corporation (GTEL) to take the lead in researching emerging technologies, including semiconductors.

Semiconductors are currently considered a critical national industry for the next 30-50 years. According to the National Semiconductor Industry Strategy, by 2030, Vietnam will become a center for the semiconductor chip industry with activities including design, packaging, and testing.

Vietnam is increasingly attracting large semiconductor corporations from the US, South Korea, Japan, and European countries. Last September, US President Joe Biden visited Vietnam and upgraded the relationship between the two countries to a Comprehensive Strategic Partnership identifying innovation and development of the semiconductor industry as important areas of cooperation.

According to Custom Market Insights, the global semiconductor chip market is estimated to reach $634.5 billion in 2023. By 2032, this market is expected to reach about $1,1 trillion in revenue.

According to Bloomberg data, chip imports from Vietnam to the US increased from $321.7 million in February 2022 to more than $562 million in February 2023, accounting for 11.6% of the US market share, behind only Malaysia and Taiwan (China).

In addition to telecommunications enterprises, the prime minister also evaluated that conglomerates and state-owned corporations still play a leading role in the economy. In 2023, the total revenue of state-owned enterprises was about $67.1 billion, exceeding 4% of the 2023 plan. Likewise, the pre-tax profit was about $5.1 billion (up 8%), contributing more than $6.74 billion (up 8%) to the state budget.

However, Chinh believed that there are still some limitations such as loss-making enterprises, weak competitiveness and application of science and technology, innovation, slow digital transformation, and poor corporate governance innovation.

In 2024, the prime minister instructed state-owned enterprises to restructure according to the 2021-2025 plan, prioritizing resources for core areas and exceeding the assigned production and business plan targets.