According to Statista Market Insights, the Vietnamese semiconductor market is forecast to see healthy growth with a compound annual growth rate of 9.62 per cent between 2024 and 2027, reaching a market volume of $26.20 billion.

Le Quan, Senior lecturer Faculty of Engineering Fulbright University Vietnam

Vietnam also boasts over 30 foreign-led companies in integrated circuit (IC) design, including established players like Renesas, Synopsys, and Cadence alongside innovative startups like Ampere, ADTechnology, Inphi, FingerVina, Dolphin Technology. The sector also encompasses numerous smaller firms with around 100 or fewer employees.

By 2040, Vietnam is poised to become a crucial player in the global semiconductor ecosystem, encompassing all aspects of the industry, from design and manufacturing to assembly, test, and packaging (ATP) and equipment fabrication.

The strategy emphasises the importance of fostering a skilled workforce. Vietnam boasts a strong talent pool in the semiconductor industry, with 50,000 design engineers, 200,000 electronics engineers, 500,000 technical workers, and one million software engineers. To further enhance this workforce, the strategy aims to transition up to 30,000 personnel from the existing pool of 350,000 IT and telecommunications engineers.

The global semiconductor packaging landscape is undergoing a rapid transformation, driven by a surge in new facilities across Asia. The wave of semiconductor investment in Vietnam and the industry’s demand for personnel have driven educational institutions, from top universities to vocational colleges, to launch training programmes related to semiconductors.

Last year, major universities such as Hanoi University of Science and Technology, University of IT – Vietnam National University Ho Chi Minh, and the University of Engineering and Technology announced engineering programmes specialising in semiconductors. Younger universities like FPT and Phenikaa are also making significant investments in this area, not only in training initiatives but also in facilities and equipment.

However, to truly understand the current landscape of semiconductor training in Vietnam, it is essential to look at the regulations and current state of training schemes in this field from 2024 backward.

Firstly, the high costs associated with establishing chip fabrication facilities make it an impractical investment for Vietnam. The country’s resources would be better allocated towards sectors that promise more immediate returns, such as ATP and IC design. Advanced packaging technologies represent a feasible and profitable entry point in the global semiconductor value chain, aligning with Vietnam’s strengths in low-cost, adaptable labour.

Vietnam should focus on drawing overseas funding into ATP operations, leveraging its lower labour costs to attract foreign companies. The availability of a high-quality but affordable workforce makes Vietnam an attractive destination for packaging, testing, and assembly processes. Prioritising such investment with advanced packaging capabilities will allow Vietnam to build a competitive advantage in this sector.

Meanwhile, the IC design segment represents a high-value opportunity with significant global demand. To capitalise on this, Vietnam should proactively seek partnerships and outsourced projects from international IC design firms. Engaging Vietnamese firms in IC design outsourcing allows for skill transfer, builds local capacity, and positions Vietnam as a reliable partner in the global semiconductor value chain.

Collaboration between industry, educators, and government should be boosted. Building a cohesive semiconductor workforce will require closer partnerships between educational institutions, industry players, and the government.

By integrating real-world projects into academic programmes, Vietnamese graduates will better understand the industry’s practical requirements and be more prepared to transition directly into the workforce. Schemes that bring industry projects to academia will provide students with hands-on experience, making them job-ready upon graduation.

At the same time, establishing specialised training for semiconductor roles, particularly in ATP and IC design, will be essential to reduce the industry’s current reliance on costly in-house training. This should involve upskilling engineers from related fields through short, intensive courses designed to meet industry standards.

Partnerships with international organisations for curriculum development, as well as accreditation for training initiatives, will help elevate Vietnam’s semiconductor workforce to global standards.

Vietnam can also implement “train-the-trainer” programmes. Its academic institutions face a shortage of faculty members with practical experience in semiconductor technologies. By leveraging international partnerships, Vietnam can upskill its instructors, who can then transfer these skills to future generations of engineers.

Notably, several US institutions have expressed willingness to offer training to Vietnamese trainers, a vital step towards creating a sustainable, locally driven semiconductor education ecosystem.

Finally, effective workforce development in the semiconductor industry requires government involvement in fostering a supportive ecosystem. Policies that incentivise partnerships between academia and industry, such as funding for research and development and joint training programmes, are critical.

The move marks an important milestone in the partnership between Thanh Cong Group and Czech carmaker Skoda Auto. The plant covers 36.5 hectares with a capacity of 120,000 vehicles per year. Construction started in early 2023, and after 25 months of development, the factory is fully completed and ready for production.

At the event, the plant ounveiled its first car, the Skoda Kushaq—a model in line with Skoda’s global quality standard. It is ready to enter commercial production and supply in the second quarter of 2025.

As the first Skoda car factory in Southeast Asia, it is expected to be a centre for supplying Skoda cars to the regional market.

Chairman of Thanh Cong Group, Nguyen Anh Tuan, said, “The Thanh Cong Viet Hung car plant is a major project within Thanh Cong Viet Hung Automotive and Supporting Industries Complex. We are willing to expand cooperation in European automobile technology, improve production and technological capabilities, and diversify product types, including green vehicles, electric vehicles, internal combustion engine vehicles, and specialised vehicles.”

Klaus Zellmer, CEO of Skoda Auto, shared, “The operation of the factory and the production of the first car, the Skoda Kushaq, marks an important milestone in the collaboration between Thanh Cong Group and Skoda in expanding the European car market in Vietnam and spreading the Skoda brand in the ASEAN region. We expect this collaboration to bring mutual success to both Skoda and Thanh Cong Group. I look forward to seeing the first standard quality Skoda cars coming out of the Thanh Cong Viet Hung facility.”

Thanh Cong Viet Hung Automotive and Supporting Industries Complex will continue to attract investments to build battery and engine factories, warehouse areas, research and development facilities, supporting areas, ports, and service areas.

Photo: Le Toan

In early March, SmartSolar become the latest Vietnam-based energy tech company securing a $1.85 million seed funding from Picus Capital and 2degrees, with additional backing from Iterative. The company offers an innovative zero-upfront-cost business model enabling small- and medium-sized enterprises (SMEs) across Southeast Asia to rapidly adopt rooftop solar solutions, removing financial barriers to clean energy transitions.

After six months of launching, SmartSolar has installed nearly 1MWp of capacity across various SMEs in Vietnam. The company will use the fresh funding to scale up its operations locally and expand its footprint across Southeast Asia.

The company’s long-term objective goes beyond installations, with plans to create a comprehensive EnergyTech platform that will enable SMEs to smoothly shift to renewable energy.

Soren Wiberg Holm, venture lead at 2degrees, said, “We consider the market for solar in Vietnam at an inflection point, with surging local demand, favourable natural conditions, and strong policy tailwinds. SmartSolar directly addresses what is perhaps one of the largest barriers to solar adoption by SMEs in the region – access to upfront capital.”

“We have deep, deep conviction that the SmartSolar team is positioned to build financing infrastructure to power the transition to clean energy in not just Vietnam, but ultimately the entire region,” Holm added.

In early February, Clime Capital made an investment in Ampotech, a Singapore-based energy management solution provider with operations in Vietnam. This investment, facilitated through the Southeast Asia Clean Energy Fund II, will support Ampotech’s regional Southeast Asia expansion with an initial focus on market growth in Vietnam, Indonesia, and also the Philippines.

Ampotech platform, using smart Internet of Things solutions and AI support, optimises energy usage in large buildings, factories, and infrastructure, helping reduce energy costs, ensure energy security, and contribute to Vietnam’s carbon reduction and sustainability goals.

Jessica Tran, Clime Capital’s country manager in Vietnam, said, “Ampotech and energy tech companies are playing a pivotal role in transforming Southeast Asian countries’ energy landscape by leveraging innovation and technology to drive the transition to clean, sustainable energy.”

Ampotech and others are introducing cutting-edge solutions such as AI-enabled platforms that optimise energy management in large-scale infrastructures, multi-construction builds environment including office buildings, factories, logistics facilities. This innovation helps businesses reduce energy consumption, lower operational costs, and increase energy efficiency.

“With growing demand for energy infrastructure to support economic development, technology-driven companies are helping Vietnam modernise its energy sector and shift towards renewable energy sources,” Tran said.

Indeed, more foreign funds and financial institutions are ramping up their support to Vietnam’s energy transition efforts.

On March 12, the European Investment Bank (EIB), the financing arm of the European Union, reaffirmed its commitment to deepening cooperation with the State Bank of Vietnam on sustainable finance through technical assistance under the EIB’s Greening Financial Systems programme (see Page 6).

On March 6, net-zero solutions provider Banpu NEXT signed a deal with SolarBK, a Vietnamese clean energy company, to establish a joint venture named Esco NEXT to continue expanding the scale of renewable energy in Vietnam. In the first phase, Esco NEXT targets to deploy at least 390MW of rooftop solar power within the first few years.

James Rama Phataminviphas, group senior vice president for Strategic Investment and Partnership at Banpu NEXT, said, “This strategic partnership is a key milestone in our renewable business to accelerating the growth of our solar rooftop portfolio in Vietnam. We see Vietnam as a potential renewable market, and we believe that this joint venture can strengthen our business growth and ecosystem while contributing to the country’s net-zero goal.”

In January, Vietnam’s CME Solar secured $20 million investment from Emerging Africa & Asia Infrastructure Fund (EAAIF) to develop a pipeline of rooftop solar projects for companies in Vietnam, aiming to reach over 260MWp of projects.

Esther Chan, fund manager of EAAIF, said Vietnam was a standout example of a dynamic, resilient growth market in Asia, with 6.5 per cent growth forecast in 2025 and 2026, up from 5 per cent in 2023.

“We also find Vietnam an attractive place to invest because of the quality of companies and management we find in the country,” Chan said. “In Asia, there is a $1.7 trillion annual infrastructure investment opportunity. EAAIF is poised to capitalise on this potential to drive growth, rapidly enhance climate-resilient infrastructure, and support communities in adapting to climate change.”

Also in January, Mirova, an affiliate of Natixis Investment Managers, announced its investment in Ecoligo, a global solar commercial and industrial player. This marks the first investment by Mirova Gigaton Fund in Vietnam, with a commitment of $10 million in senior debt financing. The investment aims to finance a portfolio of greenfield solar rooftop projects.