Vietnam's Race to Cultivate a Semiconductor Workforce

Vietnam is in a race against time to capitalize on a golden opportunity to establish itself as a powerhouse in the global semiconductor industry.

At a conference on semiconductor workforce development in Hanoi on April 24th, Prime Minister Pham Minh Chinh underscored the urgency and importance of developing human resources to support the country's ambitions in this critical high-tech sector.

A Pivotal Moment

The semiconductor industry, described by the prime minister as the foundation for three transformative revolutions – digital, green, and smart – has long been dominated by a handful of economies such as the United States, South Korea, Japan, China, Europe, and Taiwan.

However, recent events have prompted a diversification of the supply chain, with countries like Vietnam emerging as attractive destinations for investment.

"We only have 18 months," warned Truong Gia Binh, chairman of FPT Group, one of Vietnam's leading technology firms. "The world will not wait for us. Then the world will have to choose another path if we do not respond promptly. At any cost, the world cannot lack chips."

The COVID-19 pandemic exposed the vulnerability of concentrated supply chains, leading to severe disruptions and shortages that reverberated across industries.

The United States, Japan, and other nations are now actively promoting the establishment of alternative semiconductor manufacturing hubs, presenting Vietnam with a narrow window of opportunity.

In a bid to seize this opportunity, the Vietnamese government has set an ambitious target of training between 50,000 and 100,000 semiconductor engineers by 2030.

This goal stems from a directive issued by the Communist Party's Central Committee in October 2023, and repeated at the conference, underscoring the strategic importance of the semiconductor industry for the country's socio-economic development.

The Scale of the Challenge

Achieving this ambitious target, however, will not be an easy feat. According to Minister of Planning and Investment Nguyen Chi Dung, the project will require a comprehensive approach encompassing seven key areas: training lecturers and full-time students, promoting research and development, investing in physical facilities and technological infrastructure.

It will also ask for attracting experts and talents, creating a market for trained human resources, developing specific mechanisms and policies, and fostering international cooperation.

One of the most significant challenges lies in the shortage of qualified instructors. Associate Professor Vu Hai Quan, director of Ho Chi Minh City National University, revealed that "the institution could count the number of semiconductor experts with doctorates on the fingers of one hand."

Infrastructure Investments

To address this challenge, Vietnam is investing in state-of-the-art facilities and laboratories. The National Innovation Center (NIC), Ho Chi Minh City Hi-Tech Park, and Hoa Lac Technology Park are among the existing infrastructure that can be leveraged for semiconductor training and research.

Several universities, including the National Universities in Hanoi and Ho Chi Minh City, are proactively developing strategies and partnerships to establish semiconductor-focused programs and research centers. However, financing these initiatives will require a combination of public and private investments, as well as international cooperation.

Minister of Information and Communications Nguyen Manh Hung emphasized at the conference the importance of public-private partnerships, suggesting that the government should consider signing agreements with countries facing severe semiconductor talent shortages to secure commitments for human resource supply.

A Dual Approach: Progressive and Breakthrough

Prime Minister Chinh advocated for a dual approach combining progressive and breakthrough solutions. The progressive approach involves leveraging and adapting existing electronics and information technology programs, while also establishing new faculties and facilities dedicated to semiconductor training.

The breakthrough solutions, on the other hand, require more ambitious measures. These include offering attractive salaries and incentives to retain and attract top talent, establishing specialized research centers in collaboration with leading global semiconductor companies, and implementing flexible policies to facilitate the recruitment of foreign experts.

International Cooperation and Talent Attraction

Vietnam's semiconductor ambitions have already garnered international attention and support. The country has signed a Memorandum of Understanding with the United States to cooperate in developing the semiconductor ecosystem, with a particular focus on human resource development.

Global technology giants like NVIDIA and Samsung have also expressed interest in investing in Vietnam's semiconductor industry, recognizing the country's potential as a future production hub.

However, capitalizing on these opportunities will require a concerted effort to attract and retain top talent, both from within Vietnam and internationally.

Hung Tran, CEO of Got It, a Silicon Valley-based company, emphasized the importance of tapping into the network of Vietnamese experts working abroad, who can provide valuable guidance and mentorship to aspiring semiconductor engineers.

"Given the considerable number of Vietnamese individuals actively employed in global corporations, engaged not solely in teaching or research, but across various operational roles, it's imperative that we leverage this resource," he said.

"As part of our short-term strategy, if there are individuals capable of swiftly fulfilling the required tasks within the next 24 months, it is paramount that we promptly attract them to our team," Hung added.

A Long-Term Vision: Education and Innovation

While the immediate focus is on training a skilled workforce to meet short-term demands, Vietnam's semiconductor strategy extends far beyond the 2030 target.

Minister Nguyen Manh Hung outlined a 30-year roadmap, divided into three phases, with the ultimate goal of achieving full autonomy in all stages of the semiconductor value chain by 2050.

"In this 30-year roadmap, Vietnam's semiconductor industry will not only progress through certain stages; rather, we aim to achieve full autonomy across all semiconductor manufacturing phases, positioning Vietnam as a primary market player," Minister Hung said.

To lay the foundations for this long-term vision, Vietnam is exploring ways to instill a passion for STEM (Science, Technology, Engineering, and Mathematics) subjects among students from an early age.

Initiatives like robotics competitions and specialized STEM curricula are being implemented to nurture the next generation of innovators and entrepreneurs.

Associate Professor Vu Hai Quan emphasized the importance of fostering a robust research and development ecosystem, encompassing universities, innovation centers, and businesses. This ecosystem, he argued, would not only produce skilled graduates but also drive innovation and facilitate the commercialization of new technologies.

Challenges and Risks

Despite the optimism and determination, Vietnam's semiconductor ambitions are not without challenges and risks. Attracting and retaining top talent in a highly competitive global market will require substantial investments and incentives.

Additionally, experts say the country must navigate geopolitical tensions and potential trade barriers as it seeks to establish itself as a major player in this strategic industry.

Moreover, the success of Vietnam's semiconductor strategy hinges on the effective coordination and collaboration among various stakeholders, including government agencies, educational institutions, businesses, and international partners.

Any disconnect or lack of coherence could undermine the country's efforts and squander the narrow window of opportunity presented by the diversification of global supply chains.

Nonetheless, the Vietnamese government appears resolute in its commitment to developing the semiconductor industry and nurturing the necessary human capital.

As Prime Minister Chinh emphasized, the task of training semiconductor engineers is not merely a priority but a "breakthrough of breakthroughs" – a pivotal endeavor that could shape Vietnam's technological and economic future for decades to come.