Reuters cites two industry insiders revealing that Vietnam is in discussions with major chip manufacturers such as TSMC and GlobalFoundries, hoping to attract foreign investments to help build its first wafer plant. While Vietnam has already made contact with wafer foundries like TSMC and GlobalFoundries, U.S. officials have issued warnings about the high costs involved.
Vietnam currently hosts Intel’s largest semiconductor packaging and testing facility globally and has several semiconductor software design companies stationed in the country. However, their goal is to attract more semiconductor investments, including wafer foundries primarily focused on chip manufacturing.
Vu Tu Thanh, the Chief Representative of the American Chamber of Commerce in Vietnam, told Reuters that in the past few weeks, they have held meetings with six American chip companies, including wafer operation firms. As they are still in the initial stages, he declined to disclose the list of companies.
An unnamed high-level source mentioned that the Vietnamese government has engaged with TSMC and GlobalFoundries with the aim of establishing Vietnam’s first wafer plant, possibly focusing on chips for applications in automobiles or electronics with relatively less advanced processes.
U.S. President Biden visited Vietnam in September, aiming to strengthen the relationship between the United States and Vietnam. Biden has described Vietnam as a potential crucial link in the global semiconductor supply chain.
GlobalFoundries stated that they were invited by President Biden and visited Vietnam during that time. However, sources have indicated that after the meeting, GlobalFoundries has not immediately expressed interest in investing in Vietnam.
U.S. officials have conveyed that the current stage primarily involves assessing the willingness of both parties and discussing potential incentives and subsidies, including power subsidies, infrastructure, and the availability of experienced labor.
The Vietnamese government has expressed its hopes to construct the first wafer plant before 2030 and announced on Monday (10/30) that semiconductor companies investing in Vietnam can receive the highest subsidies currently available in Vietnam.
https://sia.net.tw/wp-content/uploads/2023/10/新聞-16.jpg244365nathan.dang/wp-content/uploads/2022/05/LOGO-1000-e1652814003142-877x430.pngnathan.dang2023-10-31 17:19:312023-11-14 10:57:42Vietnam Extends an Invitation to TSMC and GlobalFoundries, Plans to Construct Its First Wafer Plant
Under the witness of Vietnam’s Prime Minister Phan Minh Chinh and all major ministers, ten multinational organizations including Taiwan’s ‘Southeast Asia Semiconductor Center’ and ‘Southeast Asia Semiconductor School,’ Google, Intel, and Samsung, signed a memorandum with the Vietnam National Innovation Center on the 28th.
Vietnam’s semiconductor industry is making significant progress, collaborating with a host of prominent Taiwanese and international companies led by MediaTek to jointly establish a semiconductor ecosystem. On the 28th, witnessed by Vietnam’s Prime Minister Phan Minh Chinh and ten ministers, a memorandum of cooperation was signed in Hanoi, primarily focused on semiconductor-related high-tech industries. Participating companies include Google, SpaceX, Intel, Samsung, and Taiwanese entities such as the Southeast Asia Impact Alliance (SIA), ALiTech, Ennoconn, TopCo, and Marketech. The collaborative actions within this new project have garnered significant attention.
Taiwan’s Southeast Asia Impact Alliance (SIA) and Vietnam’s largest fund management company, VinaCapital, simultaneously established the Southeast Asia Semiconductor Center (SSC) and the Southeast Asia Semiconductor School (SSS). These entities will facilitate research and development cooperation in the semiconductor industry, fostering the interaction of technology, talent, and industry to construct a semiconductor ecosystem in Vietnam, bridging the gap between Vietnamese semiconductor talent and Taiwanese semiconductor companies.
Founder of the Southeast Asia Impact Alliance, Mr. CY Huang, expressed that Vietnam places significant importance on this collaborative initiative. Immediately following the signing, several major enterprises approached them to discuss talent and technical collaboration. VinaCapital serves as SIA’s Vietnamese coordinating unit, and Vietnam’s National Innovation Center (NIC) falls under the Investment Department’s plan, with a status similar to Taiwan’s Ministry of Economic Affairs. VinaCapital will work towards establishing SSS and SSC at NIC. As for the Hoa Lac Hi-Tech Park, it is Vietnam’s most advanced high-tech park, having signed a strategic alliance with Taiwan’s Hsinchu Science Park.
SIA recently organized the ‘Taiwan-Vietnam Semiconductor Summit’ at the end of September in Hanoi. Mr. CY Huang emphasized that, due to political factors, Vietnam cannot formally sign high-level cooperation agreements with Taiwan, making this initiative led entirely by civil organizations. This has attracted announcements of investment plans in Vietnam from companies including Synopsis (U.S.), Marvell, and Hana Micron (South Korea), while Taiwan holds a leading position in the semiconductor industry but is relatively behind in terms of this particular expansion.
During the previous ‘Taiwan-Vietnam Semiconductor Summit,’ Taiwanese participants confirmed the advantages of the Vietnamese industry, particularly the local talent pool. Surveys indicate that Vietnam, with its population of 100 million, currently has only 5,000-6,000 hardware engineers trained in the semiconductor industry. It is expected that the industry will require 20,000 engineers within five years and 50,000 within ten years. Huang Qiyuan noted that Vietnamese students studying in Taiwan are the largest group of foreign students, primarily majoring in science and engineering. Vietnam’s National University (VNU) also participated in signing the memorandum of understanding (MOU), and it is expected that future Taiwan-Vietnam cooperation in terms of talent will drive the next wave of growth.”
https://sia.net.tw/wp-content/uploads/2023/10/新聞-8.jpg244365nathan.dang/wp-content/uploads/2022/05/LOGO-1000-e1652814003142-877x430.pngnathan.dang2023-10-31 14:35:582023-10-31 16:55:36Taiwan and Vietnam Collaborate in Constructing the Semiconductor Ecosystem
VinFast (stock symbol on Nasdaq: VFS) has recently announced the signing of an agreement with the YA II PN Fund (Yorkville) regarding the purchase of VFS common shares.
Under this agreement, VinFast will have the right to request Yorkville to purchase up to $1 billion worth of VFS common shares at any point within the 36-month term of the agreement.
VinFast logo at an event in Los Angeles, California (Photo: Vingroup)
Yorkville Advisors is noted to be a US-based investment management fund with over 20 years of experience in investing in publicly traded companies. Their investment criteria focus on the management team, fundamental aspects of businesses, and stock market trading indicators.
In a press release issued, VinFast, represented by Mr. David Mansfield, the Chief Financial Officer of VinFast, stated that the new capital infusion provides the company with flexibility and proactive access to funding to further expand its global business operations and enhance the liquidity of the company’s stocks.
“We will continue to assess optimal sources of capital from the international capital market to support VinFast’s ongoing development,” a representative of the automotive company remarked.
At VinFast, the majority of shares still indirectly belong to Mr. Pham Nhat Vuong.
In the information disclosure, following the merger with Black Spade, VinFast Auto’s total outstanding shares amount to over 2.3 billion shares. Among these, Vingroup owns 51.36%, two investment companies belonging to Mr. Pham Nhat Vuong, namely Vietnam Investment Group Joint Stock Company (VIG), own 33.37%, and Asian Star Trading & Investments Pte. Ltd owns nearly 15%. The remaining shares constitute a small portion held by other shareholders.
At the end of April, Mr. Pham Nhat Vuong announced a donation of up to 24 trillion Vietnamese dong (equivalent to 1 billion USD) to VinFast from his personal assets.
In conjunction with Mr. Vuong, Vingroup Group, founded by Mr. Vuong, also pledged non-refundable sponsorship of up to 12 trillion Vietnamese dong (equivalent to 500 million USD) and extended a loan of up to 24 trillion Vietnamese dong (equivalent to 1 billion USD) to augment resources for VinFast’s global growth objectives.
On the US stock market, VFS shares are currently priced at 5.69 USD per share (closing price on October 19th).
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According to the Foreign Investment Agency (Ministry of Planning and Investment), from the beginning of 2023 to September 20, 2023, Hung Yen Province ranked 10th in the country in terms of attracting foreign direct investment (FDI), with nearly 700 million USD, a 34% increase compared to the same period, and nearly equaling its FDI attraction for the entire year of 2022 (747 million USD).
Therefore, from 2014 until now, this is the first time that Hung Yen Province has entered the Top 10 provinces and cities attracting the highest FDI in the country.
The production of export-oriented garments and textiles takes place at Kydo Vietnam Co., Ltd., which has Korean investment capital, located in the Pho Noi A Industrial Zone in Hung Yen
According to the Management Board of Industrial Zones in Hung Yen Province, as of now, the total number of foreign investment projects in the province is 531, with a registered capital of approximately 6.7 billion USD. Foreign investors hail from various countries and regions, with Japan leading the way, boasting 173 projects and a total registered investment capital of over 4 billion USD.
Presently, 169 FDI projects from Japan are operational in Hung Yen, with a total realized investment of approximately 3.258 billion USD, generating employment for around 45,000 workers and contributing about 1.407 billion VND to the state budget in 2022. In the first six months of 2023 alone, they contributed around 880 billion VND, equivalent to 38.2 million USD.
Hung Yen Province currently hosts 17 operational industrial zones covering an area of over 4,400 hectares. Notably, the Thang Long II Industrial Zone, led by the Sumitomo Group (Japan) and spanning 345.2 hectares, is a prime example of the province’s success in attracting FDI. To date, this industrial zone has received more than 80 foreign investment projects with a total registered capital of over 3 billion USD. Especially, the Thang Long II Industrial Zone has received government approval to expand by an additional 180.5 hectares, increasing its total area to 525.7 hectares. This expansion facilitates the attraction of more FDI investors.
Additionally, there are several large-scale investment projects within the province’s industrial zones, such as the Hoya Project with a total capital of 214 million USD, the Nippon Mektron Project with 300 million USD, Kyocera projects with 385 million USD in total investment, and the Toto Project with an investment capital of 403 million USD.
Chairman of the Hung Yen People’s Committee, Tran Quoc Van, mentioned that Hung Yen’s advantageous geographical location in the heart of the Red River Delta, proximity to Hanoi, and excellent economic and social infrastructure, transportation, commercial trade, services, logistics, as well as its convenient connectivity to Noi Bai International Airport, Hai Phong International Port, and major economic, commercial, and industrial centers nationwide contribute to its rapid development.
Notably, the province possesses an abundant labor force, with over 700,000 people of working age, primarily young and more than 50% of whom have received training. Moreover, the province has enacted numerous preferential policies to attract investment and provide support to businesses, facilitating their growth. These factors have made Hung Yen an attractive destination for foreign businesses.
The plan is to further increase the number of industrial zones in Hung Yen to 30 with a total area of 9,540 hectares by 2030. In addition, there will be 25 industrial clusters with an area of over 1,200 hectares and a projection to increase to 52 industrial clusters covering 3,000 hectares by 2030.
https://sia.net.tw/wp-content/uploads/2023/10/新聞-6-1.jpg244365nathan.dang/wp-content/uploads/2022/05/LOGO-1000-e1652814003142-877x430.pngnathan.dang2023-10-25 10:57:192023-11-14 10:59:26Hung Yen Province Ranks Among the Top 10 Regions with the Highest FDI Inflows Nationwide
TST Group’s – KY (4439) to Commence New Vietnam Production Capacity in 1Q 2024, Anticipating Recovery of Key Customers and Operational Rebound. TST Group-KY announced that the new Vietnam facility is expected to undergo trial runs by the end of this year and officially commence production in the first quarter of next year. Initially, it will add 500,000 pounds of production capacity per month, with the monthly capacity expected to reach 1 million pounds by the end of the year. This will contribute to a 25% increase in overall in-house production capacity next year compared to this year, and the ratio of in-house to outsourced production capacity will also shift from 7:3 this year to 8:2 next year.
TST Group-KY stated that industry visibility currently extends through the first half of next year, with customer demand maintaining a gradual recovery. In light of this, the new production capacity scheduled for next year will also be scaled up on a quarterly basis, with an estimated monthly capacity of 1 million pounds by year-end. The maximum monthly capacity of the first phase of the new facility can reach 3-3.5 million pounds, and plans for the commencement of the second phase will be based on market demand.
TST Group-KY’s fourth quarter typically experiences a seasonal downturn, and based on past experience, revenue is expected to decline by approximately 10% compared to the third quarter.”
https://sia.net.tw/wp-content/uploads/2023/10/新聞-5-1.jpg244365nathan.dang/wp-content/uploads/2022/05/LOGO-1000-e1652814003142-877x430.pngnathan.dang2023-10-25 09:39:502023-10-25 09:49:13TST Group’s New Vietnam Factory Set to Commence Production in the Next Quarter
Minister of Education and Training Nguyen Kim Son (left) chaired the workshop
On October 19th, the Ministry of Education and Training organized a High-Quality Workforce Development Seminar for the semiconductor chip industry, involving higher education institutions in Vietnam, at the University of Danang in Danang City.
The seminar was presided over by the Minister of Education and Training, Mr. Nguyen Kim Son. The event had the participation of representatives from the Ministry of Planning and Investment, the Ministry of Science and Technology, the Ministry of Information and Communications, and leaders from Danang City.
The seminar attracted the involvement of representatives from nearly 40 higher education institutions in Vietnam. These are institutions known for offering large-scale programs relevant to fields closely related to semiconductor chip design.
Furthermore, there was also the participation of representatives from domestic and international companies operating in the semiconductor chip design field, such as Intel Corporation, Synopsys Vietnam, Cadence, Qorvo Vietnam, Viettel High-Tech Industries Corporation, VNPT Technology Vietnam, and several experts in the semiconductor industry.
During the seminar, Mr. Hoang Minh Son, Deputy Minister of Education and Training, pointed out that the shortage of high-quality human resources, especially in the high-tech sectors, is a significant bottleneck in attracting large technology corporations to shift their investment in research, development, and production to Vietnam.
Deputy Minister of Education and Training Hoang Minh Son informed about the shortage of high-quality human resources, especially in high-tech fields.
Especially, since the establishment of the Comprehensive Strategic Partnership with the United States in September last year, significant opportunities for cooperation in the development of high-tech sectors such as artificial intelligence, semiconductor technology, new energy technology, etc., have opened up. However, the practical implementation is currently facing substantial challenges due to the shortage of human resources, both in terms of quantity and quality.
The primary cause of the high-quality workforce shortage in high-tech fields lies in the inherent dynamics of supply and demand within the education and labor market relationship.
The semiconductor industry, including microelectronics, represents a highly promising sector in terms of future high-caliber, high-quality workforce demand. Like many other high-tech sectors, the semiconductor industry necessitates significant investments and imposes specific requirements on the availability of skilled human resources.
Mr. Son mentioned that the Ministry of Education and Training is currently formulating an industry-wide action plan to stimulate the implementation of training programs and rapidly enhance both the quantity and quality of high-quality human resources, particularly in the semiconductor field, including microchip design engineers.
The conference attracted the participation of representatives of nearly 40 Vietnamese higher education institutions
At the seminar, Assoc. Prof. Dr. Nguyen Duc Minh, representing the Hanoi University of Science and Technology, stated that Vietnam currently has 5,000 engineers, with an annual demand growth of 10-15%. This demand is primarily for design engineers (physical, layout) and testers (DV).
It is forecasted that by 2024, Vietnam’s semiconductor industry will surpass a value of 6.16 billion USD. To maintain a production facility similar to TSMC, approximately 60,000 skilled personnel are required. In 2023, TSMC needs to hire an additional 6,000 semiconductor production engineers. Samsung already employs around 10,000 R&D engineers as of 2021. Vietnam’s semiconductor industry requires 10,000 engineers annually.
Mr. Minh presented market forecasts from Deloitte, Nikkei Asia, Time News, and KED Global. These sources indicate that 65% of the semiconductor microchip industry market share is dominated by five countries and regions: the United States, Taiwan, China, South Korea, and Japan. These nations and territories are involved in both design (accounting for 50% of added value) and production (contributing 30% of added value) phases.
Key Takeaways:
The seminar aims to unify, enhance awareness, and foster determination to collaboratively act among top universities, with the interest, investment, and policy framework development of the state, and the active participation of local authorities and businesses. This collective effort will boost the training of high-quality human resources, serving the development of the country’s semiconductor chip industry.
https://sia.net.tw/wp-content/uploads/2023/10/新聞-4.jpg244365nathan.dang/wp-content/uploads/2022/05/LOGO-1000-e1652814003142-877x430.pngnathan.dang2023-10-24 11:47:192023-10-24 11:50:49Loosen the High-Quality Semiconductor Chip Industry Workforce Constraint
After a year of border reopening post-pandemic, the tourism trade deficit continues to widen, impacting not only tour guides serving foreign tourists but also group leaders leading tours abroad, and it varies by language. Chairman Hsu Guan-bin of the Taiwan Tour Guide Association explained that although the post-pandemic tourism market appears to be recovering, it is uneven. Mandarin and Japanese language tour guides, which make up the majority, are experiencing a decline in group bookings this year, while Thai and Vietnamese language guides are in high demand.
According to statistics from the Tourism Bureau, as of September this year, there were a total of 46,687 tour guides in Taiwan, specializing in 15 different languages. Mandarin language guides were the most numerous, with over 35,000, followed by English with 7,281, Japanese with 4,102, Thai with 174, and Vietnamese with 168.
Chairman Hsu Guan-bin of the Taiwan Tour Guide Association pointed out that Mandarin language guides have traditionally served mainland Chinese tourists, Hong Kong and Macau visitors, as well as Malaysian and domestic tour groups. With mainland Chinese tourists not yet allowed to visit, approximately 85% of Mandarin language guides are without work. The significant reduction in Japanese tourists has also affected Japanese language guides, whose workload remains more than 50% lower than pre-pandemic levels. In contrast, English language guides have benefited from the recovery of European and American travelers in the second half of the year, as well as the revival of cruise tourism, and their workload has returned to 75-80% of pre-pandemic levels.
While some language guides are struggling to find work, the post-pandemic recovery of Southeast Asian tourists has led to a strong demand for Vietnamese and Thai language guides. To accommodate a larger number of tourists in the coming year, it is recommended to increase the quota for less common languages in tour guide certification and even expand the training of guides in additional languages.
Lee Chi-yueh, Chairman of Innovate Travel, mentioned that although group leaders have seen a quicker recovery compared to tour guides, Mandarin group leaders are still struggling due to the unopened mainland Chinese market. In addition, there is a consistent shortage of Korean language guides, both pre-pandemic and post-pandemic. English language guides often work part-time as group leaders or lead tours to Southeast Asian destinations.
Some industry observers note that overall inbound tourism has only recovered about 30%, and in terms of major markets, Vietnam has not only recovered but has exceeded pre-pandemic group levels. For instance, Cola Travel has discovered that the post-pandemic Muslim market is a new opportunity for Taiwan’s tourism industry, as tour groups tend to seek travel agencies for arrangements due to dietary factors. The number of people coming to Taiwan is showing remarkable growth and continues to be promising.”
https://sia.net.tw/wp-content/uploads/2023/10/新聞-3.jpg244365nathan.dang/wp-content/uploads/2022/05/LOGO-1000-e1652814003142-877x430.pngnathan.dang2023-10-24 10:48:442023-10-24 10:58:09Increasing Demand for Southeast Asian Tourists Leads to a Shortage of Tour Guides
ShinFox Energy (6806) is expanding internationally by signing an Investment Agreement with Chugoku Electric Power of Japan and Vietnam’s renewable energy developer, BB Power Holdings (BBPH). They will jointly invest in a renewable energy power plant in Vietnam, with an initial capacity exceeding 200 MW. This move reflects their strong commitment to participating in the international green energy development landscape and providing essential support as the ideal backing for global overseas green energy supply by Taiwanese businesses.
In addition, ShinFox Energy established Shinfox Far East Company Pte Ltd in Singapore two years ago to create an international fleet and maritime engineering team. Due to Taiwan’s limitation from the influence of the northeast monsoon, the offshore wind power construction period is only six months. To engage in maritime engineering, it is essential to internationalize. In order to expand the scale of Taiwan’s offshore wind power market and be able to undertake huge global maritime engineering opportunities worth billions of dollars, Sowitec Energy jointly established ‘Shinfox Far East Company Pte Ltd’ in 2021 in partnership with a maritime engineering team from Singapore.
After completing the investment this year, ShinFox Energy gained control and allocated billions to build an international fleet. In addition to nurturing talented young people from Taiwan, the company has organized a team consisting of professionals from Singapore, Germany, the Netherlands, Denmark, India, Malaysia, Vietnam, Myanmar, and other countries. It is the first owner of an international maritime engineering team and international fleet among local offshore wind power teams in Taiwan. This marks an important step for Taiwan’s local wind power industry to move towards an international professional team.
Husen Hu, General Manager of ShinFox Energy, pointed out that renewable energy is a service industry, and the service industry needs to go international. In order to develop overseas renewable energy business, ShinFox Energy joined forces with international strategic partners to invest in overseas clean energy projects. Last year, they also went to the Pacific region to develop the Fiji wind power renewable energy market in collaboration with Chugoku Electric Power from Japan, thereby tapping into global renewable energy opportunities.
Recently, on the morning of the Mid-Autumn Festival, they participated in an investment agreement with the well-known developer BBPH in Vietnam through a joint investment approach. ShinFox Energy holds 35% of the shares, Chugoku Electric Power from Japan holds 35%, and the Vietnamese developer holds 30%. The three parties confirmed their cooperation framework in Ho Chi Minh City, Vietnam, on September 29. BBPH is a subsidiary of the Vietnamese BB Group and has accumulated nearly 1 GW of operational and management experience, covering various green energy technologies such as hydropower, solar power, and wind power.
Vietnam is currently one of the Asian countries with the most comprehensive global trade agreements, including CPTPP, EVFTA, RCEP, and enjoys preferential tariffs with major global countries. This has led to increased investment by Taiwan’s manufacturing industry in Vietnam in recent years. Taiwan currently ranks as the fourth largest investor in Vietnam, following South Korea, Singapore, and Japan.”
In 2022, the Vietnamese government introduced the ‘2050 National Climate Change Strategy,’ pledging to achieve carbon neutrality by 2050. This year, they have also approved the ‘8th National Power Development Strategy,’ which prioritizes the green energy industry as a key focus for the next stage of Vietnam’s development. Moreover, the visit of U.S. President Biden to Vietnam on September 10th marked an elevation in bilateral relations to a ‘Comprehensive Strategic Partnership,’ strengthening economic and trade cooperation. As a result, Vietnam’s green energy industry has garnered significant attention, and the demand for green electricity has become an urgent and crucial issue for Taiwanese businesses.
To meet the demand for green electricity in Vietnam, ShinFox Energy’s board of directors recently approved additional investments in Vietnamese renewable energy projects. They are collaborating with strategic partners, Chugoku Electric Power of Japan and Vietnamese developer BB Power Holdings (BBPH), to jointly invest in overseas clean energy projects, expanding their international presence. This move aims to generate higher returns on investments, benefiting shareholders and contributing to the company’s revenue.
According to official estimates, Vietnam’s solar energy potential is approximately 963 GW (around 837,400 MW on land, 77,400 MW on water surfaces, and 48,200 MW on rooftops). From now until 2030, the total solar energy capacity is expected to increase by 4,100 MW. By 2050, the total installed capacity is projected to range from 168,594 to 189,294 MW, producing 25.21 to 29.15 billion kWh of electricity.
By 2030, onshore wind energy capacity is set to reach 21,880 MW, with around 6,000 MW of offshore wind energy. Given the rapid technological advancements, reasonable electricity prices, and transmission costs, these figures may further expand. By 2050, offshore wind energy could potentially reach between 70,000 and 91,500 MW.”
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On October 17th, Mr. Phan Viet Tich, Director of the Department of Agriculture and Rural Development of Quang Nam Province, along with Mr. Tran Bao Son, General Director of Truong Hai Agriculture, visited the Gia Nghia County Government (Taiwan) and explored the potential for agricultural development using unmanned aerial vehicles (UAVs) at the R&D and Innovation AI UAV Center in Asia to understand the development capabilities in agriculture of UAV manufacturers. They also held discussions with enterprises related to agricultural production in ChiaYi County.
The Economic Development Department stated that these two cities have the potential for strong collaboration in promoting high-tech agriculture and the use of unmanned aerial vehicles. Today, the Chiayi County Mayor, Mr.Weng Zhangliang, attended to welcome the foreign guests and exchanged gifts.
Quang Nam Province in Vietnam and ChiaYiCounty both possess abundant agricultural resources. In recent years, ChiaYi County has actively developed industrial zones and promoted the local agricultural brand ‘CHIAYUM’. They aim to connect various resources to expand international marketing and stimulate the growth of smart agriculture. The development of unmanned aerial vehicle applications in agriculture is also thriving.
On the Vietnamese side, they were introduced to the use of unmanned aerial vehicles (UAVs) in agriculture by two companies, A3FUN II and Kunwei. Mr. Pham Viet Tich mentioned that he was very impressed with ChiaYi County, a large county that combines technology and agriculture. Mr. Tran Bao Son also noted that in the future, it may be possible to establish a supply chain between the two cities based on agriculture to promote further trade cooperation and market development.
Giang Chan Vi, the Director of the Economic Development Department, stated that UAVs are widely used and can perform various tasks such as fertilizing, irrigation, and monitoring plant diseases in agricultural fields. ChiaYi’s agriculture is integrating UAV technology to address the labor shortage caused by an aging population, supplement labor needs, and meet the requirements of various sectors. This will stimulate the development of various digital innovation applications.
ChiaYi County Mayor Mr. Weng Zhangliang stated that the R&D and Innovation AI UAV Center in Asia has attracted visitors from all around the world to come and disrupt the global supply chain to establish Taiwan’s presence in this field and have a larger share in the international market. Agricultural applications are becoming increasingly popular, and ChiaYi County aims to become a major industrial and agricultural district, with the promise of combining unmanned aerial vehicles with smart agriculture. Previously, this sector was relatively isolated and had limited international exposure, but with the establishment of the Science Park and the R&D and Innovation AI UAV Center in Asia, I believe that international connections will strengthen, creating more job opportunities and expanding our global influence.
According to the Economic Development Department, the R&D and Innovation AI UAV Center in Asia integrates agriculture, government, education, and research. The center has successfully established a test and research area for unmanned aerial vehicles, with more than 40 units setting up their base here in over a year, making it the most comprehensive UAV research center in Taiwan. The county government will promote the simultaneous development of both the agricultural and unmanned aerial vehicle industries.
https://sia.net.tw/wp-content/uploads/2023/10/新聞-2-1.jpg244365nathan.dang/wp-content/uploads/2022/05/LOGO-1000-e1652814003142-877x430.pngnathan.dang2023-10-19 10:11:312023-10-19 10:44:55The province of Quang Nam observes and develops agricultural cooperation between Taiwan and Vietnam with the support of unmanned aerial vehicles
From Hanoi, the capital of Vietnam, heading south, in less than an hour’s drive, the tall buildings outside the car window quickly give way to industrial factories.
This is Hai Duong Province, the electronic manufacturing hub of northern Vietnam. In the industrial zones attracting foreign investment, the roads are straight and wide. On one side, you have the network equipment factory Wistron NeWEB, while on the other side, Wistron is planning to expand its operations. Not far away, a newly started Japanese electronics factory is under construction. Cattle graze leisurely in the scorching sun on endless construction sites.
In Dong Van Industrial Zone, Henan Province, Vietnam, major factories are expanding against the economic boom.
“Passionate, healthy, and ready for overtime!” Lin Xuanjie, Chairman of Great Resource Group and President of the Bac Nunh Branch of the Vietnam Taiwanese Business Association, stopped his car and casually translated the recruitment signboard next to him. Factories are settling in one after another, and every street corner is filled with job advertisements.
Lin Xuanjie, who is engaged in factory construction, has been in Vietnam for 17 years. He never expected that the industrial zones in northern Vietnam would be as crowded as they are now, and land prices have doubled along with it.
Because the factories that were stuck due to the pandemic have all started operating this year,” observed Chien Chih-ming, Chairman of the Vietnam Taiwanese Business Association. Just among the Taiwanese business members in northern Vietnam, there has been an increase of 150 new companies in the last two years.
Hai Duong Province is just a microcosm of this recent explosion in foreign investment. Looking at the map of major factory locations, it’s evident that this wave is different from what we saw four years ago.
Initially, major electronic factories that set up in China followed the route that Foxconn founder Terry Gou had chosen 20 years ago. They took China’s production capacity and distributed it through land routes from Guangxi to Hanoi, the airport hub, and the seaport of Hai Phong in northern Vietnam.
But now, the areas around Hanoi and Hai Phong are no longer sufficient. Electronic manufacturing giants are sprouting up all over northern Vietnam. Even the agricultural province of Ninh Thuan in southern Vietnam announced this year that it is opening up land for development, welcoming Foxconn’s $1.2 billion investment with open arms.
This investment boom we see now is almost going against the economic trend.
Looking at Ho Chi Minh City, tall buildings are rising from the ground.
China Plus One hotspots: Customers are specifically requesting factory setups
Currently, with sluggish consumer demand in Europe and the United States and the manufacturing industry still working to reduce its inventory, Vietnamese officials have acknowledged that this year’s GDP growth target of 6.5% may be difficult to achieve. Paradoxically, investments continue to pour in.
“The customers have already directly told us to prepare a factory in Vietnam. Can we afford not to come?” lamented the head of a major electronics contract manufacturing company in Vietnam.
Northern Vietnam has become the hottest new region for the “China Plus One” strategy. The reason is its proximity to China, allowing for integration with Chinese factories and the gradual development of industrial specialization.
“Other than China, where in the world can you find all the Electronic Five Brothers gathered like in Taiwan?” accurately described Liao Yun-huan, the Deputy General Manager of Chisilin Vietnam, a major passive component manufacturer.
In Northern Vietnam, it’s not only Taiwanese businesses that are thriving. Chinese Apple supply chain giant Luxshare Precision plans to expand its Vietnamese factory this year, while Vietnam’s largest foreign direct investor, Samsung, has announced further investment, with plans to spend $220 million in Hanoi to establish a new research and development center.
Vietnamese authorities estimate that this year’s foreign direct investment (FDI) scale will return to pre-pandemic highs, ranking just behind Singapore and Indonesia within the ASEAN region.
“The entire world is now linked to Vietnam,” said Schneider, the Deputy Chair of the Legal Committee of the European Business Association in Vietnam. Vietnam already had numerous free trade agreements in hand, and now it has even more opportunities to substitute for China as the world’s factory.
Vietnamese people take pride in being the only nation to have defeated both major powers, the United States and China. Whether you visit the Military History Museum in Hanoi or the War Remnants Museum in Ho Chi Minh City, they document the glorious history of how the Viet Cong guerrillas during the Vietnam War turned the tide against the once-mighty United States, causing them to leave with their heads hung low.
In the heart of Ho Chi Minh City, a three-story statue of the historical figure Chen Xingdao stands tall. In 2019, during a territorial dispute with China in the South China Sea, the Vietnamese people gathered at the statue to light incense and pay their respects as a symbol of resistance against China.
However, unlike the past, this time, the conflict between major powers did not plunge Vietnam into civil war; instead, it led Vietnam, which navigates between the United States and China, to mark a significant coming of age.
The statue on Ho Chi Minh Book Street says that Hoang Sa and Truong Sa belong to Vietnam.
Refusing to wash away its place of origin! Biden sends semiconductors
In September, U.S. President Biden, along with high-tech companies, visited Hanoi. Bilateral relations elevated two notches, with the U.S. establishing a ‘Comprehensive Strategic Partnership’ with Vietnam. Simultaneously, U.S. packaging giant Amkor announced a $1.6 billion investment in building a semiconductor packaging plant in North Ning Province near Hanoi.
Barely three weeks after Biden’s departure, Reuters exclusively revealed that Chinese President Xi Jinping might visit Vietnam at the end of October or early November.
Chen Ruiqi, a seasoned diplomat who has served over six years as Taiwan’s Economic and Cultural Representative to Vietnam, commented on the situation. He analyzed that due to supply chain restructuring and Vietnam’s strategic location in the South China Sea, both China and the U.S. cannot afford to ignore Vietnam.
“We want semiconductors, we want high technology, we want to develop renewable energy, digital economy, and establish an international financial center,” said Du Yihuang, Director of the Foreign Investment Agency under Vietnam’s Ministry of Planning and Investment, in a recent investment briefing, laying out the straightforward investment goals.”
As Vietnam’s exports continue to grow, Haiphong Port, North Vietnam’s largest port, has had to expand the construction of deep-water terminals. The picture shows Evergreen Marine’s joint venture terminal in Haiphong.
In the past, the main focus of economic and trade policies was signing free trade agreements to facilitate foreign investment for export. However, there has been a recent shift in the emphasis highlighted by Vietnamese officials.
While Vietnam still relies on importing raw materials and intermediate goods from China, in recent years, it has drawn the attention of the United States. The U.S. has raised concerns that Chinese companies are exploiting Vietnam as a “place of origin.” To counter this mispractice, Chen Yiqian, a practicing accountant from PwC stationed in Vietnam, observed that Vietnam has been strengthening customs oversight lately, stating that “this is to prevent the erosion of the tax base.
A general manager of one of the Electronic Five Brothers also revealed that Vietnamese officials are becoming increasingly concerned about whether foreign investment is genuinely helping Vietnam upgrade its technology. He explained, “In the past, when we set up factories in mainland China, local officials would ask what assistance we needed. But it’s different in Vietnam; officials now ask, ‘How many local employees have you hired? How much tax have you paid?'” Comparing the attitudes of officials in both places towards foreign investment, the difference is clear.
While officials aim to enhance the value of “Made in Vietnam” to benefit the local economy, they are also pushing for the upgrade of domestic businesses’ manufacturing capabilities.
The young entrepreneurs are ambitious about building a national brand.
VinFast, the first Vietnamese electric car brand to go public in the United States, may appear to be a grand vision of the Vin Group, Vietnam’s largest conglomerate. It has brought together partners from various countries to build Vietnamese electric vehicles from scratch. However, beneath the surface, Vin Group aims to nurture the most comprehensive domestic electric vehicle manufacturing supply chain through the flagship electric car project.
“Vietnam is not poor, and Vietnam is also not at war!” exclaimed Ruan Wenqing, former Senior Vice President of VinFast and current General Manager of Vin Group’s Green Smart Mobility (GSM) division in a powerful statement during an interview with “CommonWealth Magazine”.
At under 30 years old, he is one of the youngest high-level executives at Vin Group. When asked why he joined the company, his answer revealed a grand ambition: “To enhance the national brand of Vietnam.”
Ruan Wenqing is not an exception. Whether it’s interviewing the electric motorcycle startup Selex Motors or actively participating in the Ho Chi Minh City Startup Week, creating a national manufacturing brand for Vietnam is the overarching dream of the majority of young entrepreneurs.
However, to achieve this manufacturing upgrade, Vietnam faces two clear obstacles.
Obstacle 1: Persistent corruption and inadequate infrastructure
First and foremost, corruption and inadequate infrastructure are the major stumbling blocks in Vietnam today.
Vietnamese often say, “While China is crossing the river by feeling the stones, Vietnam is crossing the river by feeling China.” Both are socialist countries, and Vietnam actively looks to China for inspiration, presenting an economic development plan every five years, just like its neighbor.
However, since China’s economic reforms, local officials’ performance and economic development have become closely intertwined, while in Vietnam, local officials are still mired in corruption and inefficiency.
Vietnam’s infrastructure development is slow. It took more than ten years to build a single line of Hanoi’s light rail. In the end, only 13 kilometers were completed, and residents regarded it as a holiday tourist facility.
Even today, when driving on Vietnam’s expressways, there are police officers in uniforms at the toll booths, parked in groups by the roadside, checking license plates and stopping vehicles at any time to collect what’s colloquially known as “coffee money,” a form of bribe.
“If we take into account the underground economy, Vietnam’s economic size would have ranked in the top three in Southeast Asia a long time ago,” quipped Kevin, a 26-year-old entrepreneur from Hanoi.
The lack of administrative efficiency is most notably reflected in the lagging infrastructure.
Throughout Vietnam, you can see infrastructure projects that have been under construction for over a decade without completion.
Due to the influx of numerous businesses, Vietnam, which heavily relies on hydroelectric power, faced challenges due to climate change and an outdated power grid. In May of this year, Northern Vietnam experienced an unexpected power outage, affecting factory production capacity.
“We, a few Taiwanese electronics companies, even set up a Line group to discuss this issue daily,” said one major manufacturer, expressing frustration.
Obstacle 2: Uneven distribution of the labor force
While infrastructure has been a headache, Vietnam’s young labor force, once considered an advantage in manufacturing, has now become a pain point for businesses.
Ho Chi Minh is full of youth and vitality.
At the end of August, when “CommonWealth Magazine” conducted interviews in Northern and Southern Vietnam, foreign investors, scholars, and even officials were all discussing the labor shortage in Vietnam.
Looking at the population distribution in Vietnam, about 60% of the population is concentrated in the South. However, the influx of businesses into Vietnam is primarily concentrated in the northern regions, creating an evident supply-demand imbalance.
There’s a belief among businesses that it’s challenging to hire employees from different provinces in Vietnam because Vietnamese people are “homesick.” However, this issue likely stems from a lack of understanding of Vietnamese culture.
“Foreigners might find it challenging to understand, but regionalism is prevalent in Vietnam. People are hesitant to move between provinces or from North to South. They would rather go abroad for work,” explained Professor Nguyen Thanh Chung from Fulbright University Vietnam.
Furthermore, foreign investors are eyeing high-tech talent in Vietnam. Setting aside the fact that Vietnam’s international rankings in higher education still lag behind, data from the Ministry of Education, as provided by Counselor Chen Hexian from the Ministry of Education in Ho Chi Minh City, indicates that Vietnam produces just over 90,000 STEM graduates annually. Both foreign technology companies and domestic software companies in Vietnam are competing for the same pool of talent.
“Vietnam is dreaming big, but without the economic foundation that China had for its development, it’s unlikely to become the next China,” commented a Korean businessman who has been deeply involved in Vietnam for over 20 years.
The current chaos in development is quite similar to driving in Vietnam. When you arrive in Vietnam, the first thing you’re told is that if you’re not bold enough, or if you follow the rules too strictly, you won’t be able to cross the road.
“Everyone moves slowly, looks left and right, front and back, and then proceeds,” described Wang Kunsheng, a Taiwanese businessman who has been involved in toy manufacturing and business in Vietnam for over 20 years.
However, progressing based on mutual understanding cannot be the long-term strategy for a nation. In the midst of U.S.-China competition, can Vietnam seize the historical opportunity? Their biggest enemy isn’t someone else; it’s themselves.
https://sia.net.tw/wp-content/uploads/2023/10/新聞-3.png244365nathan.dang/wp-content/uploads/2022/05/LOGO-1000-e1652814003142-877x430.pngnathan.dang2023-10-18 10:04:222023-10-18 17:43:41Vietnam is ready for the upcoming semiconductor wave after the visit of President Joe Biden
Minister of Education and Training Nguyen Kim Son (left) chaired the workshop
