Japanese firms consider Vietnam an attractive destination for semiconductor manufacturing

SBI Holdings finds Vietnam to be an appealing location and is interested in collaborating to build a semiconductor ecosystem.

Prime Minister Pham Minh Chinh at the meeting. Photos: Nhat Bac

CEO of SBI Holdings Yoshitaka Kitao shared the view at a meeting between Prime Minister Pham Minh Chinh and representatives of major Japanese corporations in Tokyo today [December 16], where the Vietnamese leader is currently attending the Commemorative Summit marking the 50th anniversary of ASEAN-Japan Friendship and Cooperation.

Kitao stated that the group is currently constructing semiconductor chip factories in Japan and is contemplating future investment expansion abroad, with Vietnam and the Middle East being particularly enticing destinations.

"We are keen to cooperate with major Vietnamese enterprises in the information technology sector, such as FPT, to build a semiconductor chip manufacturing technology ecosystem in Vietnam," shared Kitao.

SBI Holdings, a prominent Japanese corporation, specializes in services, financial management, biotechnology, and emerging technologies like chips and semiconductors.

Amid plans by several US and Taiwanese semiconductor manufacturers to establish factories in Vietnam, the SBI Holdings representatives said they are seeking insights into Vietnam's development policies to attract foreign investments in semiconductor facilities, with the country set to play a key role in the global supply chain.

In Vietnam, the Renesas Electronic Group has established a research and development facility, with 1,500 Vietnamese employees, 60% of whom are software technology engineers. A representative of the group emphasized that Vietnam holds a paramount position in Renesas' global investment strategy, particularly in semiconductor research, development, and production.

Addressing the Prime Minister, he inquired about Vietnam's vision for developing the semiconductor industry and the government's expectations from Japanese businesses in this field.

CEO of SBI Holdings Yoshitaka Kitao.

Similarly, Kazuhiro Doh, a representative of Tokyo Electron Corporation, a leading Japanese semiconductor equipment manufacturer, expressed concern about the high-quality and precision requirements of the semiconductor production process. He posed questions about Vietnam's policies on human resources development to meet these requirements.

In response to the interest expressed by leading Japanese businesses, Prime Minister Pham Minh Chinh emphasized that Vietnam is actively modernizing and industrializing the country by focusing on the development of new technologies and fields, particularly in chip production and semiconductor technology.

Acknowledging the inevitability of digital transformation and global development trends, Chinh stressed the need for Vietnam to leapfrog technology development, with a specific emphasis on semiconductor technology.

The Vietnamese government leader expressed his hope that Japanese businesses, known for their extensive experience in technology, will play a crucial role in supporting Vietnam's efforts to develop semiconductor technology.

Chinh also suggested cooperation in building a common platform for technology infrastructure, encompassing communication, healthcare, and education.

To encourage Japanese semiconductor businesses to contribute to Vietnam's technological advancement, the Prime Minister suggested investment and technology transfer, support in developing high-quality human resources, and assistance in building semiconductor product factories.

“Vietnam remains a haven amidst the global uncertainties, thanks to the country's political stability, national defense, and security, foreign affairs, and rule of law, with people as the driving force of development,” Chinh said.

In pursuit of developing the semiconductor technology industry and integrating it into the supply chain of Japanese and global businesses, Chinh noted the Government has tasked the Ministry of Planning and Investment with researching and developing policies and mechanisms.

These include prioritizing the electronics and semiconductor industries through measures such as tax and land incentives and fostering an open business and investment environment.

Delegates at the meeting.

The Ministry of Education and Training has been directed to formulate policies aimed at cultivating high-quality human resources in the semiconductor field. This includes strategies to transform the existing pool of one million information technology engineers into one million industry-specific engineers focused on semiconductors.

Expressing a desire to achieve a breakthrough in the chip manufacturing industry, Chinh emphasized the urgency of moving swiftly and attracting leading businesses to invest in Vietnam.

“The Government is committed to introducing policies and mechanisms that encourage substantial capital and investment from prominent players in the semiconductor sector,” Chinh said.

Apart from Japan, numerous businesses from the US and Taiwan (China) are expressing interest in investing in Vietnam's semiconductor technology and chip production. The Prime Minister envisions Vietnam becoming an integral part of Japan's semiconductor chip production supply chain, alongside other key players such as India and China.

Prime Minister Pham Minh Chinh is currently in Japan to attend the ASEAN-Japan 50th Anniversary Summit and engage in bilateral activities at the invitation of Prime Minister Kishida Fumio, from December 15 to 18.

The year 2023 marks the 50th anniversary of diplomatic relations between Vietnam and Japan, and the two countries upgraded their relationship to a Comprehensive Strategic Partnership in November.

Japan plays a crucial role as Vietnam's most important economic partner, leading in ODA aid, and ranking highly in labor cooperation, investment, tourism, and trade.