Despite impacts caused by the COVID-19 pandemic, foreign direct investment (FDI) is still being poured into Vietnam, contributing importantly to turning the country into a new production hub of the world. Statistics from the Ministry of Planning and Investment (MPI) show that from January 2018 to April 20, 2023, the registered FDI in Vietnam totaled 180 billion USD, equaling 40.3% of the accumulated investment capital over the last 35 years. Vietnam is becoming a new production centre. According to Minister of Planning and Investment Nguyen Chi Dung, more and more multinationals and big investors have continuously invested in Vietnam. Dozens of research and development (R&D) centres, innovation hubs, and technology incubators have been established, making it easier for domestic firms, especially small- and medium-sized enterprises, to connect with foreign businesses, they noted. Source: VietnamPlus 

Vietnam becomes global production centre thanks to boom of foreign investment

Vietnam's information and communication technology (ICT) companies are well-positioned to make strong breakthroughs and reach out to the world in the near future, on the back of widespread Internet access, abundant workforce and support from authorities at all levels. Statistics from the International Telecommunication Union (ITU) showed that about 49% of the world population, or nearly 4 billion people, have yet to be connected to the Internet. It is a chance for Vietnamese ICT firms to reach globally. Vietnam now ranks 12th in the world in terms of the number of Internet users with over 70 million subscribers. There are roughly 45,000 ICT firms with more than 1 million employees. The country also leads Southeast Asia with 25 software enterprises obtaining Capability Maturity Model Integration (CMMI) certification, surpassing Singapore and Malaysia. In the coming time, the Ministry of Information and Communications MIC together with technology associations will support ICT firms by promoting economic diplomacy in digital technology, tapping global trade mechanisms to market digital technology trademarks, holding digital investment and trade promotion forums and conferences abroad, and advising the Government to sign digital partnership deals with countries, Hung said. Source: vietnamplus 

Domestic ICT firms well-positioned to reach out to the world

Vietnamese firms accounted for 27 per cent of Information and Communications Technology (ICT) industry&apos;s earnings in 2022, a 2.35 per cent increase from the previous year, according to a report by the Ministry of Information and Telecommunications (MIT). The industry reported earnings of US$148 billion, an 8.7 per cent increase from the previous year while making a contribution of $34 billion to the country&apos;s GDP this year. The Southeast Asian country continued as one of the region&apos;s top exporters of ICT products with $136 billion in exports of ICT hardware, a 11.6 per cent increase from the previous year, and a $26 billion surplus. Notably, the report said more than 60 per cent of the firms have made the switch from software outsourcing to producing their own solutions and creating added value. During the year, more than 70,000 new firms have entered the industry, a 9.6 per cent increase year-to-year. A key objective for the industry in a near future is to master and develop indigenous technologies, especially in the fields of artificial intelligence (AI), Internet of Things (IoT), cloud computing and 5G as well as the proliferation of domestically-made ICT products and services that are well-recognised internationally. Source: vietnamnews 

Vietnamese IT firms to improve earnings, reach overseas markets



Overview of the semiconductor production industry in Vietnam According to market research released by Technavio, the world’s leading technology research and consulting company, the semiconductor market in Vietnam is expected to grow by $1.65 billion at a compound annual growth rate, about 6.52% in the period of 2021 – 2025. In fact, over the past 10 years, there have been many foreign enterprises investing in the field of microelectronics such as Intel Corporation, Jabil, Sonion, Datalogic, GES… in Ho Chi Minh City High-Tech Park. Legal Framework for Semiconductor Decision No. 439/QD-TTg dated April 16, 2012 approving the “List of national products implemented from 2012 under the National Product Development Program to 2020”, which identifies and specifies “semiconductor” as one of the 9 key development products of the country. The Government also issued Decision No. 66/2014/QD-TTg on “List of high technologies prioritized for development investment” and “List of high-tech products encouraged for development”, in which specifies technologies for designing and manufacturing semiconductor and semiconductor devices on the list of hi-tech prioritized for development investment and the list of hi-tech products encouraged for development. Why Vietnam? As time passed by, more international organizations shifted their production to Vietnam due to its strategic location and advantages in shipping, competitive labor and production costs. Most recent of all, it is because enterprises in Vietnam can reap various benefits under 13 free trade agreements that Vietnam is a signatory. Vietnam has one of the most number of FTAs in the world – and most in the region. Singapore has only 6 FTAs, Malaysia has only 7. Most recently and notably, the EU-Vietnam Free Trade Agreement (EVFTA) and the CPTPP grant favorable market access and investment conditions for foreign investors wishing to do business in Vietnam. For example, under the Agreements’ tariff schedule, base rate is 0% for almost all products in the semiconductor manufacturing sector. Based on all the facts stated above, it is apparent that Vietnam is an ideal destination to carry out semiconductor manufacturing. Source: vn-eu-tradehub 

RPA is market from 2021 to 2023 and its expectation