The Challenges and Ambitions of Vietnam’s Emerging Semiconductor Industry

Vietnam, traditionally known for its low-cost manufacturing of clothes and shoes, is now looking to climb up the global supply chain by focusing on semiconductor production. With companies like Nvidia, Intel, Amkor, and Hana Micron already setting up factories in the country, Vietnam’s government has ambitious plans to grow the semiconductor market to reach $7 billion by 2028.

One of the main challenges facing Vietnam’s semiconductor industry is the shortage of highly skilled engineers. The current pool of around 5,000 engineers is far from sufficient to meet the government’s goal of reaching 20,000 engineers in the next five years and 50,000 engineers over the next decade. This shortage poses a significant hurdle in achieving the desired growth in the semiconductor sector.

The Role of Education and Training

While many young students like Nguyen Phuong Linh and Dao Xuan Son are eager to pursue careers in the semiconductor field, there is a need for quality education and training programs to equip them with the necessary skills demanded by the industry. Vietnam is currently producing only 500 qualified engineers per year, highlighting the need for more investment in infrastructure and practical training opportunities.

Despite the growing interest in the semiconductor industry among young Vietnamese students, there is a real risk of brain drain to countries like Taiwan, where salaries for highly skilled engineers are significantly higher. Analysts and professors alike have expressed concerns about retaining top talent in Vietnam, especially given the better opportunities and higher salaries available abroad.

The Path Forward

In order to overcome the challenges and harness the full potential of Vietnam’s emerging semiconductor industry, there is a need for a comprehensive approach that addresses the shortage of skilled engineers, invests in quality education and practical training, and creates incentives to retain top talent within the country. While the road ahead may be challenging, with the right strategies and investments, Vietnam has the potential to establish itself as a key player in the global semiconductor market.