Vietnam’s Emerging Role in the Semiconductor Value Chain

In this article, we’ll explore key insights from the VinVentures Vietnam Tech & Venture Capital Outlook 2025 report, highlighting several important points regarding the semiconductor industry. Additionally, we’ll reference other sources to provide a comprehensive overview. Be sure to check out the full report from VinVentures for more detailed information and in-depth analysis: https://xzztlrf6p7q.typeform.com/to/AG3l4BRd 

The global semiconductor industry is undergoing structural adjustment as supply chains diversify, and demand expands across AI, electric vehicles, and advanced manufacturing. Vietnam is among the countries where this shift is becoming increasingly visible, supported by policy direction, foreign direct investment interest, and workforce development efforts. 

Figure 1: Vietnam semiconductor industry growth (forecasted) - Vietnam Tech & Venture Capital Outlook 2025 by VinVentures 

According to Vietnam Tech & Venture Capital Outlook 2025 by VinVentures (2025) industry projections indicate that Vietnam’s semiconductor market could expand from USD 7 billion in 2025 to approximately USD 31 billion by 2030, representing more than a fourfold increase within five years. Over the same period, the semiconductor workforce is expected to grow from around 7,000 engineers to 50,000, implying both a sizable opportunity and a significant execution challenge in capability building. 

Where Vietnam Is Gaining Traction 

Assembly, Packaging, and Testing (APT) 

APT is currently the segment where Vietnam has made the most tangible progress. Multinationals continue establishing APT facilities, capitalizing on Vietnam's maturing engineering talent nearing 15,000 across roles. Da Nang's VSAP LAB targets complex techniques like Fan-out RDL and 3D integration for AI and automotive chips, with lower capex than fabs. Packaging market volumes hit USD 1.1 billion, supported by electronics exports and miniaturization demands. 

Compared with leading-edge fabrication, advanced packaging requires substantially lower capital expenditure and aligns more closely with Vietnam’s existing industrial capabilities. Over the medium term, Vietnam is positioned to handle greater volume and complexity within APT, rather than compete on scale alone. 

Design and R&D (Selective Niches) 

Vietnam has developed a technical base in fabless design and design support, particularly in niche applications such as security cameras, telecommunications (5G/6G), and ASICs/SoCs for EVs, IoT, and industrial systems. Activity has remained focused on specialized use cases rather than broad-based IC design, often in collaboration with foreign partners. 

This selective approach reflects practical constraints. As highlighted by Dr. Le Quang Dam, CEO of Marvell Vietnam, in Vietnam Tech & Venture Capital Outlook 2025 by VinVentures, competitiveness in semiconductors depends less on headline investment levels and more on engineering depth, execution consistency, and delivery speed. Capital can be mobilized relatively quickly; capabilities are built through sustained execution. 

Supporting Industries and Services 

As APT and downstream activities scale, opportunities are emerging in supporting industries, including materials, chemicals, tooling, and equipment maintenance services. While Vietnam is not positioned to localize advanced equipment manufacturing in the near term, incremental localization of services and consumables could improve supply chain resilience and reduce operating costs. 

Integrating local firms into global semiconductor supply chains will require alignment with international standards, technology transfer, and long-term customer relationships. 

Talent and Execution as the Binding Constraints 

The projected expansion from 7,000 to 50,000 semiconductor engineers highlights the central role of human capital. However, headcount growth alone will not translate into competitiveness. Capability development is required across design support, verification, advanced packaging, testing, and system integration, alongside stronger cross-functional coordination. 

Vietnam’s later entry into the semiconductor industry provides some strategic flexibility. Compared with early entrants, the country can avoid highly capital-intensive models that have proven difficult to sustain and instead focus on segments with clearer unit economics and faster learning cycles.  

Specialization as the Practical Competitive Path 

Vietnam is not currently oriented toward direct participation in segments dominated by large incumbents such as TSMC or Samsung, particularly those requiring significant scale or capital intensity. Progress is more likely through specialization in selected niches where quality, customization, and delivery reliability are more relevant than volume. 

In practice, semiconductor credibility is built through a sequence of smaller, well-executed projects rather than rapid expansion. This incremental approach reduces execution risk and allows trust to compound over time within global supply chains. 

Outlook: A Measurable Opportunity, Conditional on Execution 

Over the next 5–10 years, Vietnam has the potential to develop regionally competitive semiconductor capabilities if workforce scaling, policy implementation, and ecosystem coordination advance in parallel. The principal risk is not lack of ambition, but delays arising from fragmented decision-making and uneven execution. 

References 

VinVentures. (2025). Vietnam Tech & Venture Capital Outlook 2025. 

Vietnam News Agency. (2025). Da Nang moves to attract major semiconductor investments. https://vietnam.vnanet.vn/english/print/da-nang-moves-to-attract-major-semiconductor-investments-406031.html 

Ministry of Industry and Trade of Vietnam. (2025). Technology can support Vietnam’s 50,000 semiconductor engineers' goal by 2030: Experts. https://ven.congthuong.vn/technology-can-support-vietnams-50000-semiconductor-engineers-goal-by-2030-experts-57616.html 

B&Company. (2025). Vietnam semiconductor market: Key updates & investment activities in H1 2025. https://b-company.jp/vietnam-semiconductor-market-key-updates-investment-activities-in-h1-2025/ 

Vietnam News. (2023). First chip developed by Vietnamese engineers launched. https://vietnamnews.vn/bizhub/1720521/first-chip-developed-by-vietnamese-engineers-launched.html 

VietnamPlus. (2025. High-quality manpower could level up semiconductor development. https://en.vietnamplus.vn/high-quality-manpower-could-level-up-semiconductor-development-post272151.vnp