CORDIAL RELATIONS WITH CHINA, US
Vietnam’s cordial relations with both China and the United States also make it a relatively safe bet for investors.
The two superpowers have been locked in a trade war since 2018, with tensions causing supply chain shifts in the growing global semiconductor sector.
Analysts also said they see a lot of uncertainty in how the return of Donald Trump to the White House will impact global trade and supply chains, and that they are optimistic about Vietnam’s potential.
Nevertheless, some investors have said authorities will need to address major bottlenecks that have plagued other industries in the country.
These include administrative reforms and implementing innovative policies to ensure a sustainable supply of clean energy – critical elements for the semiconductor industry.
“Investors want a fast and clear process for investment. If it takes a few years before they can invest, investors will just go to other countries. They cannot wait because time is the critical element,” said Vietnam’s Minister of Planning and Investment Nguyen Chi Dung.
“About 50 top semiconductor firms in the world have invested in Vietnam. Nvidia is also coming to Vietnam. Top names like that will be in Vietnam,” he added.
According to the minister, Vietnam is mulling over plans to simplify investment procedures and provide more attractive incentives for foreign firms investing in the semiconductor industry.
Vietnam currently has no semiconductor manufacturing or fabrication plants where raw silicon wafers are turned into integrated circuits or chips. These are crucial components in a variety of electronics, from washing machines and cars to smartphones and missiles.
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