nathan.dang

National Taiwan University proposes semiconductor program, welcomes collaboration with Vietnam

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National Taiwan University (NTU) has announced plans for its centennial celebration, revealing a series of initiatives. Particularly noteworthy is the proposal to establish an international degree program in the semiconductor field, with plans to commence admissions next year. The focus of this program will be on attracting foreign students, aiming to retain international semiconductor talent in Taiwan. In light of recent interest from Vietnam in collaborating with NTU to cultivate talent in related fields, the university expresses great enthusiasm and a proactive approach to cooperation.

NTU President Chen Wen-Chang declared that the semiconductor program at the undergraduate level has undergone evaluation by the Ministry of Education, driven by the recognition of the domestic semiconductor industry’s significance.

As part of the 2028 centennial celebration plan, NTU aims to establish an undergraduate semiconductor program, with the earliest admissions slated to begin next year, targeting an enrollment of approximately 50 to 60 students annually.

台大申設大學部半導體學程　樂見與越南合作培育領域人才

National Taiwan University (NTU) is establishing an undergraduate program in semiconductors, primarily targeting international students

NTU student: “If there’s an opportunity in the future, I hope to have a chance to take the semiconductor program. After all, Taiwan’s industry is predominantly semiconductor-based. If, for instance, I plan to work in finance in the future, I feel that understanding various industries is necessary.”

When asked if the emphasis on recruiting international students might compress job opportunities for local students, a senior electrical engineering student at NTU expressed that it should be fine. Local students likely still have some advantages, as being a local is generally more favored.

NTU students are optimistic about the future semiconductor program that primarily targets international students and are not concerned about its impact on the job market. However, in cultivating semiconductor talent, not only NTU but also internationally, there is a proactive approach. Reports indicate that Vietnam, aiming to cultivate 50,000 engineers by 2030, sought assistance from Arizona State University in the United States. This olive branch extends even to Taiwan’s top academic institution, NTU.

Cheng Tsung-Yi, Secretary-General of the Taiwan Eastbound Alliance stated: “Currently, Malaysia has the foundational semiconductor supply chain, with support mainly coming from semiconductor companies in Singapore and the United States. Therefore, in the future, Malaysia and Vietnam will become two key players in developing the semiconductor industry in Southeast Asia. Taiwanese companies cannot lag behind; otherwise, in international competition, if we cannot keep up, others may appear to take our place.”

台大申設大學部半導體學程　樂見與越南合作培育領域人才

Secretary-General Zheng Zong-Yi of the Taiwan Eastbound Alliance issues a warning, emphasizing that Taiwan should not lag behind in attracting international semiconductor talent

Zheng Zong-Yi is also concerned that Taiwan not only faces a shortage of labor but also a scarcity of technological talent. Seeing countries such as the United States, Japan, South Korea, Singapore, and others implement highly favorable immigration policies and salary packages for top-tier talent, Taiwan should not fall behind. There is a need to accelerate the formulation of comprehensive policies and industry connections for international scientists and researchers to come to Taiwan for degree programs, career guidance, and even permanent residency. Only through such measures can Taiwan effectively overcome the impact of losing the demographic dividend on the development of its industries, including the semiconductor and technology sectors.

台大申設大學部半導體學程　樂見與越南合作培育領域人才
Countries are actively developing the semiconductor industry, offering attractive incentives to attract talent
The semiconductor industry has become a battleground, with countries worldwide introducing high-level talent immigration policies and offering generous incentives to attract individuals. Scholars and experts caution that with the disappearance of the demographic dividend, the challenge for Taiwan lies in how to strengthen the settlement and employment of foreign talent, making it a significant issue for the country.
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nathan.dang

Vietnamese Semiconductor Industry’s ‘Friendshore Outsourcing’ Development

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Vietnam’s semiconductor industry follows a pattern of manufacturing in the north and design in the south, with infrastructure development still being the focus. (Schematic diagram/Photo by Wu Shangzhe)

Vietnam has become a new manufacturing location for the United States in the semiconductor industry due to factors such as proximity to China. Analysts from the DIGITIMES Research Center observe that the Vietnamese semiconductor industry is adopting a pattern of manufacturing in the north and design in the south. Policies, infrastructure development including water and electricity supply, and talent are key areas that industry players need to continually focus on in the local landscape.

In the ongoing technological competition between China and the United States, the U.S. government aims to decentralize semiconductor manufacturing to mitigate concentrated risks, adopting a “China+1” investment strategy for the rise of the technology industry.

In response to the U.S. inclusion of Vietnam as a “Friendshore Outsourcing” target, the Vietnamese government actively upgraded its relationship with the U.S. to a “Comprehensive Strategic Partner” in September 2023, creating a favorable environment for semiconductor industry cooperation. The observation reveals that the Vietnamese semiconductor industry cluster is distributed, with memory testing and manufacturing prevalent in the north and testing and IC design dominant in the south. However, there is currently no significant trend of clustering due to limitations such as investment policies, production scale, land transportation, water and electricity infrastructure, and labor quality.

In terms of investment policies, constrained by a limited government budget and recent large-scale investments in water, electricity, and other infrastructure, Vietnam’s investment incentives primarily involve tax reductions for high-tech industries like semiconductors, including CIT tax rates and factory rent exemptions.

Regarding water supply, Vietnam’s tropical monsoon climate results in distinct dry and rainy seasons, with the northern region experiencing more noticeable differences. Economic development and increased industrial and domestic water demand, coupled with global climate change effects, require continuous expansion of reservoirs and water facilities to ensure stable water supply. Additionally, Vietnam’s pronounced dry and wet seasons, with concentrated rainfall during the wet season, necessitate careful consideration of flooding issues.

On the electricity supply front, Vietnam heavily relies on coal and hydropower, despite setting a net-zero goal for 2050. With the entry of power-intensive semiconductor industries and increased electricity demand from economic development and daily life, electricity supply has become a pressing issue, especially in the clearly defined dry and wet seasons of northern Vietnam. Urgent improvements in electricity infrastructure efficiency, especially in issues like slow construction of power plants and the 500kV grid, are needed.

Regarding talent supply, Vietnam boasts a populous and actively participating workforce, providing a good quantity of labor. However, efforts are needed to strengthen the quality of talent supply, particularly for STEM bachelor’s graduates and higher education levels.

Currently, the Vietnamese semiconductor industry is relatively smaller compared to Taiwanese, Japanese, Korean, and even Chinese companies. Northern Vietnamese semiconductor companies focus on testing, assembly, and manufacturing, primarily in memory products, while southern companies emphasize IC design, with only Intel having manufacturing facilities. In the short term, industries related to memory testing, and small-scale, diverse IoT applications in IC design may become the main drivers of Vietnam’s semiconductor industry development.

Amid the international trend of diversifying manufacturing risks with the “China+1” strategy, Vietnam has created a favorable external atmosphere for semiconductor industry development. However, from a medium to long-term perspective, DIGITIMES Research Center analyst Zhou Yan suggests that Vietnam needs to continue improving infrastructure related to policies, water, electricity, talent, and semiconductor industry development to sustain and expand the clustering effects of the semiconductor industry.

Source：WEALTH MAGAZINE | Link

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nathan.dang

Morris Chang, first ‘K.T.Li Award’ Recipient, contributions to Taiwan’s Tech and Economic Development

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李國鼎科技發展基金會今年設立李國鼎獎，評審委員一致推選台積電創辦人張忠謀為第一屆得主。（圖：總統府提供）

The Kwoh-Ting Li Science and Technology Development Foundation established the Kwoh-Ting Li Award this year, and the review committee unanimously selected Morris Chang, the founder of TSMC, as the first winner

To promote the spirit of former Presidential Advisor Kwoh-Ting Li, the Kwoh-Ting Li Technology Development Foundation has established the Kwoh-Ting Li Award this year to recognize individuals who have made significant contributions to Taiwan’s economic and technological development. The judging committee unanimously selected Morris Chang, the founder of TSMC, as the inaugural recipient. During a media exchange event held today, Wang Boyuan, Chairman of the Kwoh-Ting Li Technology Development Foundation, stated that Morris Chang has made significant contributions to Taiwan’s technological and economic development, and the award is well-deserved.

Wang Boyuan mentioned that during his 50 years in Taiwan, Kwoh-Ting Li served as Minister of Economic Affairs, Minister of Finance, Political Deputy Minister, and Presidential Advisor, playing a crucial role in Taiwan’s economic and technological development. CY Huang, Vice Chairman of the Kwoh-Ting Li Technology Development Foundation, added that Kwoh-Ting Li not only promoted the establishment of the Kaohsiung Export Processing Zone, Science Parks, TSMC, and the Institute for Information Industry but also introduced venture capital to Taiwan, facilitating two transitions from agriculture to industry and industry to technology.

Wang Boyuan pointed out that, to propagate the spirit of Kwoh-Ting Li, the foundation established the Kwoh-Ting Li Award this year to recognize those who have made significant contributions to Taiwan’s economic and technological development. The judging committee, including Wang Boyuan, former Vice President Vincent Siew, Delta Electronics founder Bruce Cheng, former National Taiwan University President Zhen Sun, Industrial Technology Research Institute Chairman Chih-Kung Lee, former President of the Industrial Technology Research Institute, C. T. Liu, and lawyer Jaclyn Tsai, unanimously selected Morris Chang as the first awardee. Morris Chang, the founder of TSMC, has represented Taiwan for many years at the Asia-Pacific Economic Cooperation (APEC) and made substantial contributions to Taiwan’s technology and economy.

Wang Boyuan continued by stating that the Kwoh-Ting Li Award does not come with a cash prize. However, a specially designed trophy will be presented, assisted by the Industrial Technology Research Institute, featuring a frame adorned with a “Nine Ding” design symbolizing a “national treasure” and laser-colorful patterns as the base, enhanced with 3D-printed relief carvings to embody the spirit of the Kwoh-Ting Li Award. In the future, the foundation will continue to recognize individuals who have made significant contributions to Taiwan’s economy, technology, and industrial development, awarding them the Kwoh-Ting Li Award. The foundation will also regularly invite international figures to Taiwan for forums, allowing the Taiwanese public to understand forward-looking industries and connections with foreign countries.

In March of this year, during the “Semiconductor Century Dialogue” event organized by CommonWealth Magazine, Morris Chang revealed that Kwoh-Ting Li was the only person in the government who believed in him. Due to Kwoh-Ting Li’s support, the government invested NT$5.5 billion in TSMC, holding a 48% stake. TSMC went public in Taiwan in 1994, and the government wanted to sell its shares immediately. To expedite the sale, TSMC listed on the New York Stock Exchange in the United States. It was only after the government’s stake was reduced to 6%, and with Chang’s reminder, that the government decided not to sell TSMC stocks anymore.

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nathan.dang

Why haven’t major electric car players entered the Vietnamese market?

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According to statistics from the Ministry of Transport, as of July 2023, the Vietnamese market has only seen around 12,600 electric cars. This number is mainly contributed by the sales of VinFast, as globally renowned electric car brands are yet to establish a presence in Vietnam.

However, according to the predictions of the Vietnam Automobile Manufacturers Association (VAMA), the number of electric cars in Vietnam is expected to experience significant growth in the coming years, reaching 1 million units by 2028 and 3.5 million units by 2040.

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The globally renowned electric car company, Tesla, has not yet made an official presence in the Vietnamese market

INFRASTRUCTURE BARRIERS TO CHARGING STATIONS

If the goal is to reach 1 million electric vehicles by 2028, the lack of charging infrastructure is one of the major barriers to the development of this type of vehicle. In the domestic market, the number of electric cars is still limited, and the charging station network has not been evenly developed. This makes the use of electric vehicles challenging, especially for those living in non-central areas.

In a discussion with the media on policy and institutional issues in the development of electric vehicles in Vietnam at the “Electric Vehicles” seminar organized by Hanoi University of Science and Technology at the end of March 2023.

Prof. Dr. Bui Van Ga, a thermal engine specialist, former Deputy Minister of Education and Training, believes that: “The use of electric vehicles is not a technological issue but is about the infrastructure for us to use it, so state investment and planning are crucial.”

Ảnh màn hình 2023-10-27 lúc 23.07.19.png

The VinFast electric vehicle charging station system has many competitive advantages when widely deployed

In Vietnam, the electric vehicle charging station system mainly comes from VinFast. The Vietnamese brand has developed a charging station system with over 150,000 charging ports for electric motorcycles and electric cars across 63 provinces and cities. VinFast charging stations are equipped with various power capacities, ranging from 11kW to 250kW, located at parking lots, bus stations, residential buildings, offices, shopping centers, rest stops, and petrol stations along highways and national roads, enabling users to charge their vehicles quickly and conveniently.

Some luxury car brands such as Mercedes, Porsche, BMW, or Audi are also establishing charging station systems for customers, but the quantity is still limited, mostly installed at showrooms or the manufacturer’s facilities. This situation makes consumers interested in purchasing electric cars from these brands consider the charging issue.

Currently, VinFast has no intention of sharing its electric car charging stations. Billionaire Pham Nhat Vuong believes, “There is no reason for VinFast to invest millions of USD in building charging stations that can easily be used by competitors. Therefore, after 10 years, other companies can use them.”

Furthermore, the cost of electric cars is still higher than traditional gasoline vehicles. This is because the production cost of electric cars remains high, especially the cost of batteries. According to the General Statistics Office, the average GDP per capita in Vietnam in 2022 is estimated at around 4,110 USD. This is still a low figure for consumers to afford conventional four-wheel personal vehicles, making it even more challenging to own electric cars due to their higher prices compared to similar vehicles with internal combustion engines.

In general, according to the assessment of the Industrial Department, the Ministry of Industry and Trade, there are 7 factors influencing the development of the electric vehicle industry in Vietnam, including low average income, lack of charging station infrastructure, limited operating range of electric cars, preferential policies for electric cars, electricity source structure affecting the environment from the use of electric cars, environmental impact from the production of electric cars, and competition from neighboring countries in attracting electric vehicle manufacturing projects such as Thailand, Indonesia, and China.

SOLUTIONS NEEDED

To achieve the number of nearly 12,600 electric cars in Vietnam, the government’s incentives for electric cars have reduced the registration fee for electric cars to 0% for three years (from March 2022 to March 2025). The special consumption tax for battery-powered electric cars has also been reduced from 15% to 3% (effective until the end of February 2027), according to the Green Energy Conversion, Carbon, and Methane Emission Reduction Program for the transportation sector. For the road sector, from 2031 to 2050, by 2040, Vietnam will gradually restrict and move towards stopping the production, assembly, and import of fuel-consuming cars, motorcycles, and scooters for domestic use.

By 2050, 100% of road vehicles, construction vehicles, and motorcycles participating in traffic will transition to using electricity and green energy. For public transportation, from 2030, the proportion of electric and green energy vehicles will reach a minimum of 50%, with 100% of replaced and newly invested taxis using electricity and green energy. By 2050, 100% of buses and taxis will use electricity and green energy.

According to Prof. Dr. Bui Van Ga, Vietnam needs policies that encourage the use of electric cars. Currently, many countries around the world subsidize electric car costs for people to use. However, when these support policies are not enough, additional environmental policies are necessary.

“Alongside that is energy policy. Another problem is that if everyone switches to using electric cars and motorcycles, electricity consumption will increase significantly, at least 2-3 times more than now. Do we have enough electrical energy to supply or not?” emphasized Prof. Dr. Bui Van Ga.

In late August 2023, the Ministry of Transport proposed to send Deputy Prime Minister Tran Hong Ha a framework for supporting the conversion of gasoline cars to electric cars, including a recommendation to support $1,000 for electric car buyers.

At the same time, proposals for support on various taxes related to production, assembly, consumption, and the construction of electric car charging stations were suggested. The Ministry of Transport proposed that three types of electric cars, namely battery-powered electric cars, fuel cell electric cars, and solar-powered cars, would receive support and development incentives.

However, the Ministry of Finance has sent a document to the Ministry of Transport rejecting many preferential proposals for electric cars. According to the Ministry of Finance, addressing the issue of subsidies and direct financial support for electric vehicle manufacturers and consumers is not suitable because electric vehicle users, especially electric car users, are generally high-income individuals in society.

The Ministry of Finance noted that in the past period, tax and fee laws have been reviewed, amended, and supplemented to suit the country’s development in each period as well as the requirements for the development of important industries and sectors. Among them, there have been many policies to encourage the use of environmentally friendly vehicles, electrified vehicles, to a relatively high extent.

The Ministry of Finance also disagrees with some other proposals from the Ministry of Transport related to tax policies for electric cars. This includes the draft proposal to continue the preferential special consumption tax rate for domestically assembled electric cars carrying less than 9 passengers at 3%, even after February 28, 2027.”

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We need breakthrough policies and solutions for electric vehicles

Heading towards the ambitious goal of one million electric vehicles by 2028 is a bold objective for the domestic electric car market compared to the current figure of nearly 12,600 cars.

Recently, during the discussion on the economic and social situation in the sixth session of the XV National Assembly, Mr. Nguyen Dai Thang, a National Assembly delegate from Hung Yen province, proposed that the National Assembly and the Government promptly study breakthrough policies and solutions, aligning them with countries in the region and around the world.

Thang emphasized the need to issue a separate resolution early to pilot specific preferential policies regarding taxes, land, and administrative procedures to promote investment in the production and assembly of electric vehicles. This aims to quickly position Vietnam as one of the world’s electric vehicle and parts manufacturing centers, meeting the domestic and export demands for electric vehicle production.

Vietnam needs a roadmap to transition from using conventional road motor vehicles fueled by fossil fuels to electric vehicles. It is crucial to invest in comprehensive infrastructure for electric charging stations to meet the increasing demand for electric vehicles, keeping pace with regional and global trends.

Source: Tap Chi Thuong Gia | Link

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nathan.dang

5 leading spearheads in the digital transformation of the healthcare industry

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According to the Ministry of Health, digital transformation in healthcare has seen developments with remote medical examination models and the application of artificial intelligence in diagnosis.

On October 29th, the Ministry of Health organized a Forum on Research and Application of Healthcare Technology. The forum aims to introduce and connect innovative potential in the healthcare sector among domestic organizations and units, as well as with technology developers and international investors to promote the development of the healthcare industry in Vietnam in the coming time.

According to Mr. Tran Van Thuan, Deputy Minister of Health, in the past three years since the outbreak of the Covid-19 pandemic, the healthcare sector has witnessed more innovative changes. Notably, the emergence of technology applications for gene monitoring, sharing of disease data, and the development of telehealth…

Innovation in healthcare includes the development and application of new ideas, technologies, processes, and solutions to improve quality and promote the application of scientific advances in medicine. The healthcare industry has been at the forefront of innovation in various aspects, such as:

First, technological innovation, such as the development of new medical devices, diagnostic equipment, telehealth solutions, electronic health records, and health information systems.

Second, digital applications: The integration of digital technologies in medical devices helps continuously monitor health remotely and promptly receive health advisory information.

Third, predicting disease trends through big data analysis: Data analysis and big data technology are being used to extract information to predict the outbreak of diseases and the changing trends of disease structures in the community.

thach thao vnn 43 568.jpg

Doctors integrate diagnostic imaging and functional investigation data into smartphone and computer systems

Fourth, biotechnology: Technological innovation in biotechnology involves controlling biological processes to develop new methods and advanced therapies, such as gene therapy, stem cell therapy, and regenerative medicine.

Fifth, telemedicine: Innovations in telemedicine have expanded the accessibility of healthcare services, allowing remote consultations with service providers, reducing the need for direct visits, improving service delivery in remote and underserved areas, islands, basic healthcare, and in cases of natural disasters and epidemics.

According to Mr. Thuan, the Ministry of Health’s goal in the coming time is to continue improving technical solutions, conducting research, and issuing policies to create more favorable conditions for telehealth, especially the implementation of digital healthcare platforms.

Currently, the National Health Information Center of the Ministry of Health is actively promoting platforms such as remote medical examinations, electronic health records, immunization management, and health station management. These applications can easily integrate with platforms of other healthcare facilities.

nen tang tu van suc khoe tu xa 16984860863861519552195.jpg

The healthcare industry is actively promoting digital health platforms, with a focus on supporting remote medical consultations and treatments

Sharing at the forum, Mr. Nguyen Hoang Bac, Director of Ho Chi Minh City University Medical Center, stated that the hospital has built and developed a comprehensive electronic medical record system.

The electronic medical record software includes various functional modules such as inpatient, outpatient, pharmacy, records management, health insurance, and finance. These modules are interconnected not only to serve medical specialties but also to enhance management and customer service. Each patient treated here has a complete personal health record with information on medical history, personal history, drug allergies, and the treatment methods applied.

Currently, the hospital also conducts remote medical examinations, develops artificial intelligence (AI) in diagnosis, pioneers the implementation of image storage and management systems, builds and digitizes specialized processes, treatment, and patient care.

Source: Vietnamnet | Link

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nathan.dang

Vietnam has the potential to become the next Asian tiger

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Vietnam is considered to have the full potential to become the next Asian tiger.

With its independent and non-threatening foreign policy approach to Western economies, Vietnam’s remarkable economic growth is described as “unparalleled,” further elevating its political standing.

Additionally, according to an analysis by Asia Times, Vietnam could emerge as the world’s fourth-largest exporter of high-tech goods after China, Taiwan, and Germany.

Nền kinh tế Việt Nam được chèo lái thế nào trước các cơn sóng gió

Vietnam has the full potential to become the new Asian tiger

According to Asia Times, amidst the backdrop of the Covid-19 pandemic and escalating US-China trade tensions, Vietnam has surpassed South Korea to become the sixth-largest trading partner of the United States in terms of import value in 2022.

This significant leap represents a milestone in Vietnam’s economy. It is worth noting that Vietnam’s largest export items to the United States are no longer textiles but high-tech products.

By the end of 2023, many flagship products of Apple will be assembled in Vietnam.

 

“Instead of competing for the title of ‘world’s factory’ with China, Vietnam is elevating its position to become a supplementary manufacturing destination for China within the global supply chain ecosystem,” – Asia Times quoted the analysis by researcher Long Le from the Leavey School of Business at Santa Clara University emphasized.

Through this, Vietnam has now captured certain technology export market shares from China and is recognized as the biggest beneficiary of the US-China trade war.

“Vietnam maintains a ‘neutral’ environment essential for foreign fintech companies to minimize risks and redirect their expansion potential amid the high-stakes power competition between the United States and China,” the publication noted.

This is evident in Apple relocating its production out of China or the $1.6 billion investment by Amkor Technology, a U.S.-based company, to build a semiconductor manufacturing plant.In addition, Vietnam is open to welcoming the return of Huawei despite the U.S. restrictions imposed on this Chinese company.

Vietnam’s economic development does not pose a threat to the West

According to Asia Times, Vietnam has the potential to become the world’s fourth-largest exporter of high-tech goods, following China, Taiwan, and Germany.

While Vietnam currently holds the 7th position, Asia Times notes that the Southeast Asian nation’s growth rate is “almost unparalleled.” High-tech goods accounted for 42% of Vietnam’s export share in 2020, a significant increase from 13% in 2010.

In some aspects, Vietnam is closely tracking China’s efforts to become a high-income economy. However, Asia Times highlights that, unlike China, Vietnam’s market economy poses little threat to Western and Asian economies.

“Through its independent and autonomous foreign policy, Vietnam can prevent external interference and thrive in a safe political environment like today. Vietnam’s economic model is truly suitable for market-oriented economic growth,” the publication affirms.

However, the rapid increase in Vietnam’s high-tech exports is still not enough to accelerate its entry into the “Asian tiger” group.

In the past decades, countries like South Korea, Taiwan, and China joined this group by transitioning from low-tech to advanced technology manufacturing.

It may take approximately 15 years for Vietnam’s per capita GDP, currently $4,320 in 2023, to reach the same level as China’s per capita GDP in 2023, which is $12,540.

While Apple directs its suppliers to invest, manufacture, and assemble products in Vietnam, the question arises: can Vietnam seize the opportunity to enhance value-added and witness Vietnamese companies gradually becoming exemplary suppliers to Apple?

Certainly, this seems unlikely to happen in the short term because all of Apple’s suppliers are foreign-invested companies from China or Taiwan that have shifted to Vietnam.

While Vietnam’s high-tech exports are driving the country’s economic growth, it still has an excessive reliance on foreign investment, with about 70% of Vietnam’s total export value dominated and held by foreign companies.

The potential for Vietnam’s per capita GDP growth is significantly lower than that of other Asian tigers after reaching a low middle-income level. This is due to the fact that Vietnam’s total factor productivity (TFP) and labor force have not been sufficiently driven by domestic input, and technology diffusion is not occurring as rapidly as expected.

However, there is a notable bright spot: the current FDI inflow from fintech companies is helping Vietnam buy time to address its overreliance on foreign investment.

For example, the Vietnamese government can attract Apple to invest in R&D (research and development) and enhance relationships with Vietnamese universities and students, similar to what Apple has done in China.

Vietnam’s unique position in the race to become the new Asian tiger

As the world grapples with global imbalances and the Covid-19 pandemic, Vietnam has emerged as an exception. Vietnam has gained more time – if not an advantage – in the race to become the next Asian tiger.
“Vietnam has a unique position to become one of the fastest-growing economies in the next decade,” the publication believes in the country’s success in controlling the Covid-19 pandemic and operating as an efficient economic player in Asia during the pandemic, which has solidified the nation’s position and reputation as a safe and friendly environment for foreign direct investment.
Vietnam’s race to become the next Asian tiger does come with challenges, especially in finding solutions to reduce the overreliance on foreign investment. However, the core elements of the innovation ecosystem are taking strong root as Vietnam increasingly asserts its position as a high-tech export powerhouse.
Source: STUNAPIK | Link
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nathan.dang

Vietnam has the fastest digital economic growth rate in the Southeast Asia region

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In 2023, Vietnam has the fastest digital economic growth rate in the Southeast Asia region, achieving a 19% Compound Annual Growth Rate (CAGR) for the period 2022 – 2023, and it is projected to continue being one of the fastest-growing digital economies with a 20% growth rate for the period 2023 – 2025.

This is the latest information from the e-Conomy SEA 2023 report, announced by Google, Temasek (an investment company), and Bain & Company (a global consulting company), based on updated trends in the digital economy of six countries in Southeast Asia, including Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam.

Despite the global macroeconomic fluctuations, the report indicates that the total Gross Merchandise Value (GMV) of the region continues to rise and is expected to reach $218 billion, an 11% increase compared to the previous year. The report also shows that the revenue from the digital economy in the Southeast Asia region is poised to reach $100 billion this year.

Việt Nam có tốc độ tăng trưởng kinh tế kỹ thuật số nhanh nhất khu vực Đông Nam Á

Scene of the report announcement ceremony

In addition to the GMV figures, this is the first year the report shares revenue data, providing a more detailed insight into how businesses accelerate their growth in the context of macroeconomic challenges. The report also delves deeper into the opportunities for increased participation in the digital economy to unlock further growth potential in the region’s digital decade.

Notably, Vietnam continues to be the fastest-growing digital economy in Southeast Asia for the second consecutive year (in 2022 and 2023) and is projected to maintain this position in 2025 (tied with the Philippines). Vietnam’s total GMV is expected to achieve a 20% CAGR, increasing from $30 billion in 2023 to nearly $45 billion in 2025. The growth in GMV over the next two years will be driven by e-commerce and online travel.

On the other hand, Digital Financial Services (DFS) are growing rapidly compared to initial growth rates, with Vietnam having the fastest digital payment growth in Southeast Asia in 2023. The ongoing shift from offline to online behavior continues to drive the adoption of digital financial services (DFS). Consequently, Vietnam is also promoting this trend and becoming the fastest-growing country in digital payments, increasing by 19% from 2022 to 2023 and projected to continue growing at a 13% CAGR from 2023 to 2025.

According to Marc Woo, CEO, Vietnam, Google Asia-Pacific: “Vietnam’s digital economy is heading in the right direction. Key sectors are expected to continue to grow despite facing many challenges, notably in the digital content space, where a significant contribution comes from the gaming industry, with many Vietnamese game studios achieving global success. Google continues to comprehensively support the national digital economy through various programs nationwide, fostering Vietnam’s tech startups and investing in local talent, from basic education for students and the workforce through talent development programs, to in-depth training for technology startup leaders with Google for Startups Accelerator, such as Southeast Asia: Vietnam Innovation.”

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nathan.dang

Intel postpones its expansion investment plan in Vietnam

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(Reuters Hanoi, 7th) Reuters cited informed sources in a report, stating that Intel, the leading American chip industry player, had a previously planned investment in Vietnam that could have nearly doubled its local business. However, the project is now on hold.

傳英特爾擱置越南擴大投資計畫

Intel is rumored to have shelved plans to expand investment in Vietnam

This news comes as a significant blow to Vietnam, which has been increasingly aggressive in attracting investment in the semiconductor industry. Vietnam is a hub for electronic manufacturing in Southeast Asia and is home to Intel’s largest chip assembly and test facility, eagerly anticipating Intel’s expansion investment. When U.S. President Biden visited Vietnam in September this year, he reached a bilateral agreement to support Vietnam’s semiconductor industry.

Amidst political risks and tense trade relations, Vietnam has actively positioned itself as an alternative to China and Taiwan. However, a source who participated in a meeting informed Reuters that shortly after Biden’s visit to Vietnam, U.S. officials told a group of selected American businesspeople and experts that Intel had shelved an expansion project in the country.

This information is still confidential, and the sources requested anonymity. It was revealed that Intel made this decision as early as around July this year, but the reasons for suspending the expansion plan were not disclosed. However, another source who attended two different meetings with U.S. business executives and senior Vietnamese officials recently disclosed that Intel had expressed concerns about the stability of Vietnam’s power supply and excessive bureaucracy.

One of the meetings took place in Hanoi last week, and Vietnam’s Deputy Prime Minister Tran Luu Quang was also present.

When asked about the project-related issues, Intel declined to comment, only stating, “As semiconductor demand continues to increase, Vietnam remains an important part of our global manufacturing operations.”

The U.S. Embassy in Hanoi had no comment, and the Vietnamese government has yet to respond.

Vietnam has been actively seeking a more significant role in the global semiconductor industry, and if Intel does indeed pivot away, it would be a major setback for Vietnam. Vietnamese authorities have been in talks with chip manufacturers, hoping to convince companies looking to develop diversified supply chains to invest locally.

In June this year, Intel announced a major investment plan in Europe, while Vietnam faced power shortages, leading many manufacturers to suspend production. Intel has also expanded its investment in chip packaging facilities in Malaysia, a major competitor for Vietnam in Southeast Asia.

During Biden’s visit to Hanoi, the White House announced new plans and investments from several U.S. chip companies, including Amkor, Synopsys, and Marvell, but Intel was not mentioned.

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nathan.dang

Key Figure in US Microelectronics Backs Workforce Training in Ho Chi Minh City

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The world’s leading company in electronic system design, Cadence, has collaborated with the Ho Chi Minh City Hi-Tech Park to enhance integrated circuit design capabilities in Vietnam.

Công ty Cadence và Khu công nghệ cao TP.HCM ký kết hợp tác phát triển nhân lực ngành công nghiệp vi mạch bán dẫn - Ảnh: SHTP

Cadence Company and Ho Chi Minh City Hi-Tech Park signed a cooperation agreement to develop human resources in the semiconductor chip industry.

Training human resources in the microelectronics industry

On the morning of May 30th, Cadence and the Ho Chi Minh City High-Tech Park announced their collaboration to develop a workforce specializing in electronic design and promote the semiconductor microelectronics industry in Vietnam.

Through this partnership, Cadence will provide integrated circuit design software tools and related training programs to universities in Ho Chi Minh City through the Cadence academic network.

As a result, students in Ho Chi Minh City will gain practical experience in circuit design and verification, as well as learn how to address technical issues in the circuit design process, printed circuit board design, and the overall microelectronics design and production processes.

Mr. Nguyen Anh Thi, Head of the Management Board of the Ho Chi Minh City High-Tech Park, stated that this collaboration will boost training and research activities in the fields of electronics and microelectronics industry. According to Mr. Thi, this program will offer opportunities for students to access the latest technologies and methods in circuit design and system design, while accumulating practical experience to achieve success in the fields of electronics and microelectronics.

“We believe that this collaboration will make a significant contribution to enhancing the capabilities of the High-Tech Park’s Microelectronics Design Training Center, contributing to the development of the semiconductor microelectronics industry in Ho Chi Minh City and the economic growth of Vietnam,” Mr. Thi said.

Ho Chi Minh City aims to attract the semiconductor microelectronics industry

Mr. Michael Shih, Vice President responsible for business in the Asia-Pacific and Japan regions at Cadence, stated that the Ho Chi Minh City High-Tech Park plays a crucial role in promoting the development of high-tech industries and innovation in the region. Therefore, this collaboration will help develop a workforce in the field of electronic design in Vietnam.

According to Mr. Michael Shih, by providing access to Cadence’s software, the company aims to equip future generations of engineers with the necessary skills to contribute to the advancement of high technology in Vietnam.

Deputy Chairman of the People’s Committee of Ho Chi Minh City, Mr. Dương Anh Đức, mentioned that Vietnam in general and Ho Chi Minh City in particular are seen as potential destinations for foreign investors in the field of electronics and semiconductor microelectronics.

Ho Chi Minh City is actively preparing mechanisms, policies, land reserves, and, most importantly, a highly skilled workforce to attract investment in this field. According to Mr. Đức, the city has been operating the Microelectronics Design Training Center at the Ho Chi Minh City High-Tech Park since October last year, with a series of tasks, including collaboration programs to mobilize international resources and develop the semiconductor microelectronics industry in Vietnam.

Suorce: Tuoi tre online | Link

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Dutch Semiconductor Company invests in Ho Chi Minh City’s High-Tech Park

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The Dutch company BE Semiconductor Industries N.V. was awarded an investment certificate by the Management Board of the Ho Chi Minh City High-Tech Park on November 2nd. It is expected that the company will install equipment in 2024 and commence operations in 2025.

 

Ông Nguyễn Anh Thi, trưởng ban quản lý Khu công nghệ cao TP.HCM (phải), trao chứng nhận đầu tư cho lãnh đạo Công ty BESI - Ảnh: SHTP

Mr. Nguyen Anh Thi, Head of the Management Board of the Ho Chi Minh City High-Tech Park (on the right), presents the investment certificate to the leadership of BESI Company.

The management board of Ho Chi Minh City High-Tech Park announced that they issued an investment certificate to the Dutch company BE Semiconductor Industries N.V. (referred to as BESI) on the evening of November 2nd in Hanoi, as part of the High-Tech Business Forum Vietnam – Netherlands.

According to the Ho Chi Minh City High-Tech Park management board, BESI is a global company headquartered in the Netherlands, operating in 7 facilities across Asia and Europe. Their primary focus is on the development, production, and supply of semiconductor equipment for the global semiconductor and electronics industry. The company’s clientele primarily consists of multinational semiconductor manufacturers, assembly contractors, and industrial electronics companies.

The representative from BESI Company stated that, to save time and initiate the project sooner, BESI has decided to lease a pre-built factory from Lap Thanh Investment Limited Company with an area of 2,000 square meters in Ho Chi Minh City’s High-Tech Park.

In the initial phase, the project will be invested with over 115 billion Vietnamese Dong (equivalent to 4.9 million USD), and it will have a 50-year operational period.

The investor is expected to install machinery and equipment and recruit labor from now until the end of 2024, with the project scheduled to commence operations in the first quarter of 2025.

Mr. Nguyen Anh Thi, the Head of the Management Board of Ho Chi Minh City’s High-Tech Park, mentioned that although the investment by BESI Company has a relatively small scale, this is considered Phase 1 for evaluating the investment environment in Vietnam before the company decides to make a larger-scale investment.

According to Mr. Thi, attracting BESI Company in the semiconductor field will make a positive contribution to the economic and social development of Vietnam in general and Ho Chi Minh City in particular. This will especially create high-skilled employment opportunities and contribute to the training of technical experts in the semiconductor industry.

Source: Tuoi tre online | Link

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