The semiconductor industry offers great opportunities for cooperation between Vietnam and the US, carrying substantial implications for the bilateral relations in the new development phase.

Overview of the meeting. Photos: Nhat Bac/VGP

This view was shared at a meeting between Prime Minister Pham Minh Chinh and CEO of the Semiconductor Industry Association (SIA) John Neuffer, along with executives from US leading firms in the semiconductor industry on September 19 in Washington.

Nguyen Chi Dung, Minister of Planning and Investment, said the meeting marks the next phase in the implementation of collaborative initiatives between US semiconductor organizations and businesses, joining forces with Vietnamese partners to create opportunities for market expansion and enhance Vietnam's capabilities in the semiconductor industry.

Dung added that while the US is a prominent leader in the semiconductor sector, boasting numerous technological accomplishments, Vietnam possesses significant potential and opportunities for nurturing its semiconductor industry ecosystem.

During the meeting, US semiconductor enterprises expressed strong appreciation for Vietnam's potential in advancing the semiconductor industry, particularly given its high-quality workforce and the continual improvement of its business capacities and training facilities. The delegates discussed and exchanged ideas on prospects for investment cooperation in Vietnam. They also put forth strategies for successful cooperation between Vietnam and the US aimed at fostering the development of the former’s semiconductor industry ecosystem, with the US serving as a key strategic partner.

In the long term, US businesses and corporations can explore the feasibility of establishing semiconductor chip manufacturing facilities in Vietnam. Prime Minister Pham Minh Chinh expressed his sincere appreciation for the presence of businesses at the meeting. He praised their strong determination, which demonstrated the interest and support of  US businesses for opportunities to collaborate and advance the semiconductor industry in Vietnam.

Prime Minister Pham Minh Chinh and representatives of US leading companies at the meeting.

"This collaboration aims to concretize the Vietnam - US Comprehensive Strategic Partnership with specific programs and projects that will bring tangible results and benefits to both parties," the prime minister said.
PM Chinh noted in addition to the previously established areas of cooperation outlined in the declaration to establish a comprehensive strategic partnership, Vietnam and the US have concurred on elevating science, technology, and innovation as a crucial new pillar in their bilateral relations. It is proposed that businesses from both countries actively collaborate, pool resources and expertise, and focus on areas of interest to Vietnam, including the semiconductor industry.
He warmly welcomed semiconductor businesses that have already invested and operated in Vietnam, recognizing their contribution to fostering the bilateral relationship between Vietnam and the US.
The Prime Minister also encouraged US semiconductor companies to deepen and expand their investments in Vietnam across various stages, including infrastructure development, technology transfer, design, production, and distribution. This cooperation should also encompass human resource training, involving businesses and research and training institutions from both countries. This approach will help enhance the quality of human resources and the capabilities of Vietnamese businesses and progressively integrate Vietnam further into the global semiconductor industry's value and supply chain, covering various stages from design and assembly to packaging, testing, and production.

MOU signing between Vietnam's National Innovation Center and Cadence Design Systems.

Chinh emphasized that cooperation in developing the semiconductor industry in Vietnam aligns with global trends, leverages Vietnam's potential and human resources, and brings benefits to the people. Consequently, the public is expected to actively and effectively participate in these endeavors.

Regarding the suggestions and proposals made by businesses concerning taxation, administrative procedures, land, and human resource training, Chinh assured that the government, ministries, and relevant authorities are committed to creating a fair and conducive business environment.

This would create the best possible conditions for foreign businesses, including US semiconductor companies, to invest and operate smoothly, safely, efficiently, and sustainably in Vietnam. The Prime Minister emphasized the spirit of "mutual benefit, shared risks," aiming for win-win outcomes for both sides and positive contributions to the Vietnam-US relationship.

On this occasion, Chinh attended the signing ceremony of several Memoranda of Understanding (MOUs), including one between the National Innovation Center (NIC) (Ministry of Planning and Investment) and Cadence Design Systems, Inc., focusing on enhancing Vietnam's capacity to design and develop semiconductor chip products. MOUs were also signed between the National Innovation Center and Arizona State University, aimed at human resource development for the semiconductor industry in Vietnam, and another between Vietnam’s Ministry of Education and Training and Intel Corporation to develop human resources for high-tech industries.