Vietnam's manufacturing sector is increasingly reliant on artificial intelligence (AI) and digital transformation to drive growth and competitiveness, as outlined in Zebra Technologies Corporation's 2024 Manufacturing Vision Study. The study highlights that 46% of manufacturers in the Asia Pacific (APAC) region expect AI to spur growth by 2024, rising to 68% by 2029. This rapid surge underscores the crucial role of AI in enhancing productivity and improving quality in manufacturing processes.Challenges in Adopting Digital TechnologiesManufacturers face big challenges when trying to adopt digital technologies. Globally, 30-40% of those surveyed say the main problems are high labor costs, a lack of skilled workers, and difficulties in combining information technology (IT) with operational technology (OT). In the Asia Pacific region, these challenges are even greater due to the sector's rapid expansion and the need for continual reskilling of the workforce.Vietnam’s Ambitious Manufacturing GoalsVietnam's government has set ambitious goals for its manufacturing sector, targeting a 30% contribution to GDP and an annual labor productivity growth rate of 7.5%. With the manufacturing sector expected to grow by more than 8.5% per year, adopting AI and other advanced technologies is critical. FDI has been pivotal, with the sector attracting $20 billion in 2023, accounting for over 60% of Vietnam’s total FDI. This influx has strengthened Vietnam's position as a manufacturing hub, particularly in electronics and textiles.Real-Time Data and AI IntegrationThe report emphasizes that real-time data visibility is key to driving digital transformation in manufacturing. By integrating AI-powered analytics, manufacturers can enhance data management, track performance, and address issues immediately. This allows for better decision-making, predictive maintenance, and quality control, leading to greater efficiency and reduced downtime.ConclusionIn conclusion, Vietnam's manufacturing sector stands at a crucial juncture, where embracing AI and digitalization will be essential for sustaining growth and competitiveness. With global and regional manufacturers increasingly prioritizing these technologies, Vietnam’s push towards a digitally-enabled manufacturing environment is expected to play a critical role in achieving the sector's ambitious growth targets.Source: Vietnam Economic News

Discover how Vietnam's manufacturing sector leverages AI and digital transformation to enhance productivity, address challenges, and achieve ambitious growth targets in the Asia Pacific region.

Vietnam's Manufacturing Boosted by AI: Challenges & Goals

Vietnam’s Manufacturing depends on AI for productivity boost

On September 23, TMA Technology Group donated 300 million VND to support Northern localities severely affected by Storm No. 3 - Yagi. According to Mr. Hiep Phan, Director of Communications, this donation was drawn from TMA's charitable fund, with contributions from 4,000 employees. For over 10 years, TMA’s charity fund has been actively involved in various social activities by local authorities. One notable program is “Thuy’s Dream”, initiated by Tuoi Tre Newspaper, which aims to help children with cancer across the country.This contribution not only demonstrates TMA’s commitment to standing alongside the community in times of hardship but also promotes humanitarian values and fosters a spirit of solidarity.Explore more at tuoitre.vn

On September 23, TMA Technology Group donated 300 million VND to support Northern localities severely affected by Storm No. 3 - Yagi. According to Mr. Hiep Phan, Director of Communications, this donation was drawn from TMA's charitable fund, with contributions from 4,000 employees. 

TMA Donated 300 Million VND to Support People in Flooded Areas

TMA Tech Group Donated 300 Million VND to Support People in Flooded Areas

TMA Solutions, a leading digital technology company in Vietnam, is proud to announce that it has been recognized as one of the Top 10 Digital Technologies Companies in Vietnam: Vietnam’s Trillion Digital Technologies Companies. The award was presented by VINASA (Vietnam Software and IT Services Association) at a ceremony held on September 21st.In addition to this prestigious award, TMA was also honored in the Top 10 Software and IT Service Outsourcing Companies. These recognitions highlight TMA's commitment to providing high-quality software development solutions and services to global clients.TMA provides expertise in advanced technologies, including 5G, IoT, AI, and robots to top international organizations in the automotive, healthcare, finance-banking, and telecommunications industries. With strong investment in R&amp;D, TMA is well-prepared to meet market demands, offering over 50 solutions to support businesses in digital transformation and AI adoption.

TMA Solutions, a leading digital technology company in Vietnam, has once again been recognized as one of the Top 10 Trillion-VND Digital Businesses in Vietnam for the 11th consecutive year. The award was presented by VINASA ...

TMA Recognized in Vietnam’s Top 10 Digital Technology Companies 2024

TMA Recognized in Vietnam’s Top 10 Digital Technologies Companies 2024

From September 10 to 12, TMA Korea participated in the K-ICT WEEK 2024 in Busan. This event served as a significant platform for showcasing 4th Industrial revolution technologies and provided opportunities for networking across the AI KOREA, CLOUD EXPO, and IT EXPO exhibitions. The focus was on connecting local businesses in industries such as maritime, finance, and logistics with advanced AI technologies. At the event, TMA’s booth presented many solutions in AI, Fintech, and Healthcare. We met and connected with over 70 South Korean companies. Through the event, we gained a deeper understanding of customer needs, expanded our business activities, and increased awareness of TMA in the South Korean market.

TMA Korea joined K-ICT WEEK 2024 in Busan, showcasing 4th Industrial Revolution technologies and networking at AI KOREA, CLOUD EXPO, and IT EXPO.

TMA Korea Showcases Innovations at K-ICT WEEK 2024  in Busan

TMA Korea Showcases Innovations at K-ICT WEEK 2024

In 2023, Vietnam has emerged as a focal point for significant investments from global technology giants. This surge in interest is primarily driven by the country’s growing prominence in the semiconductor industry, which is vital for numerous high-tech applications worldwide. This article explores the factors contributing to Vietnam's rise as a key player in the tech sector, the specific investments being made, and the potential challenges faced by foreign direct investment (FDI) in the country. Vietnam's Rising Importance in Semiconductor Production The semiconductor industry is at the heart of modern technology, powering everything from smartphones to advanced computing systems. Vietnam is positioning itself as a major player in this industry, with substantial investments being made by leading technology companies. In 2023, the global interest in Vietnam's semiconductor sector has intensified. The country is poised to become a significant producer of essential semiconductor devices, which are crucial for various high-tech applications. This development aligns with the broader trend of increased FDI in Vietnam, reflecting confidence in the country’s capacity to become a key hub for semiconductor manufacturing. Key Investments by Global Tech Giants Several prominent technology companies are making substantial investments in Vietnam, signaling the country’s growing importance in the global tech landscape. Intel's Investment Intel, a leading semiconductor manufacturer, has committed $1.2 billion to establish a new semiconductor chip production facility in Ho Chi Minh City. This investment marks Intel’s third global manufacturing site, with existing facilities in Scotland and Israel. The Ho Chi Minh City plant is expected to play a crucial role in meeting the projected demand for semiconductor chips, with Intel aiming to supply 20% of the world’s semiconductor chips by 2030. Samsung and LG's Contributions In addition to Intel, other major technology companies are also investing heavily in Vietnam. Samsung has announced a $1.5 billion investment, while LG is contributing an additional $1 billion. These investments highlight the increasing importance of Vietnam as a strategic location for technology manufacturing. Japanese Investment in Manufacturing Furthermore, a Japanese company has received a license from the Industrial Zone Management Board in Hanoi to produce components for Boeing, ship components, and Shinkansen parts. This investment not only underscores the diverse range of manufacturing activities in Vietnam but also indicates the country’s potential to support advanced manufacturing sectors. The Role of FDI in Vietnam’s Tech Industry The influx of FDI into Vietnam is a testament to the country’s growing appeal as a manufacturing hub. Prof. Nguyen Mai, Chairman of Vietnam’s Association of Foreign Investment Enterprises, has highlighted the positive trends in FDI, particularly noting the high-quality investments from leading global technology firms. This optimism is expected to continue into 2023, with Vietnam increasingly being recognized as a key player in the tech industry. Challenges and Considerations Despite the positive developments, there are challenges associated with foreign investments in Vietnam. One significant concern is transfer pricing, a practice where companies manipulate the prices of goods and services between their subsidiaries to shift profits and reduce tax liabilities. Recent data from the Ministry of Finance revealed that 55% of FDI enterprises reported losses in 2021, an increase from the previous year. This rise in reported losses has raised concerns about the potential impact of transfer pricing on the country’s economic stability. Moreover, external factors such as the COVID-19 pandemic and global political conflicts have posed challenges for businesses operating in Vietnam. These factors have contributed to a complex environment for foreign investors, requiring a nuanced analysis to differentiate between businesses facing genuine operational difficulties and those potentially engaging in financial practices like transfer pricing. Conclusion Vietnam’s rise as a hub for semiconductor production and technology manufacturing is a significant development in the global tech industry. The substantial investments by major technology companies, including Intel, Samsung, and LG, underscore the country’s growing importance in the tech sector. However, challenges such as transfer pricing and the impact of global uncertainties must be carefully managed to ensure sustained growth and stability in Vietnam’s investment landscape. As Vietnam continues to attract global investment and develop its tech infrastructure, it is poised to play an increasingly prominent role in the global semiconductor market. For business owners and investors, understanding these dynamics and navigating the associated challenges will be crucial in leveraging the opportunities presented by Vietnam’s burgeoning tech sector.

Emerges as a major semiconductor with Intel, Samsung & LG investing billions, this highlights Vietnam's potential as a key global player in the industry.

2023: A Boom Year for Tech Giant Investments in Vietnam

2023: A Boom in Tech Giants' Investments in Vietnam

The head of the government suggested that Japan support Vietnam in advancing its digital transformation, green transition, and innovation; grow its high-tech and semiconductor industries; and support its biotechnology, pharmaceutical, and medical equipment sectors to support public health care.Tech Giants Converge in Hanoi for Strategic Talks Amid Biden's Vietnam VisitVietnam's Semiconductor Industry: A Global PlayerAccording to the Northeast nation's Minister of Economy, Trade, and Industry, Japan wants to work with Vietnam to survey, exploit, and process rare earth elements as well as to establish associated industries.During their Friday meeting in Hanoi, the two leaders of Japan and Vietnam discussed the suggestions. Japan's government departments would work with their Vietnamese counterparts through task forces to enhance collaboration, transfer of technology, and training of human resources.Vietnamese Prime Minister applauded the idea of task forces to expedite collaboration on certain projects and said that the Vietnamese government will establish advantageous circumstances to attract Japanese investment.In May, there were three projects totaling JPY61 billion (US$500 million) in official development assistance signed by Vietnam and Japan.Japan is the largest donor of Official Development Assistance to Vietnam, having given the nation loans totaling over $21.6 billion, non-refundable aid, and technical support since 1992.Source: Vietnam Government Portal

Discover how Japan's investment in Vietnam's semiconductor industry boosts collaboration, tech transfer, and strengthens Vietnam's role in hardware.

Vietnam's Semiconductor Industry: Japan's Investment

Vietnam - Potential Partner for Japan's Semiconductor

With the current political and economic climate, Vietnam has a lot of chances to grow its semiconductor chip sector and become a player in the global value chain. Experts agree that the most pressing issue now is the need for a plan to train workers to meet business needs and the absence of regulations to entice investors and talent in preparation for a market that might reach $1 trillion by 2030. The contemporary computer owes its very existence to semiconductor microchips. Chips and microcircuit systems are essential to functioning a wide variety of consumer electronics, including vehicles, phones, computers, TVs, aircraft, robots, medical equipment, and other electrical items found in the home. The semiconductor industry's "big guys" have entered a new market: Vietnam With its improved reputation and political stability, Vietnam is now in a better position to entice leading semiconductor technology companies from around the world. A facility in Bac Ninh province will manufacture, assemble, and test semiconductor materials and equipment, and Amkor Technology Group (Korea) is investing quickly in it so that trial production may start by the end of October. Yen Phong II-C Industrial Park is home to a state-of-the-art semiconductor factory project that will set a new record for Amkor's global footprint at an estimated 1.6 billion USD. Similarly, in 2023, Samsung conducted the first round of the GSAT (Global Samsung Aptitude Test) hiring test to assist with the R&amp;D Center (Hanoi) operations and the factory's ambitions to manufacture transistor grids. Samsung Electro-Mechanics Vietnam (SEMV) is based out of Thai Nguyen. More than $2.6 billion is the capital of the project in issue. At the same time, Vietnamese operational firms are constantly broadening the reach and placement of their projects. For example, the Japanese conglomerate Meiko Group has recently contacted the provincial government of Hoa Binh with an offer to spend over $200 million USD in a factory on the left bank of Song Da Industrial Park that would manufacture a variety of electronic circuits. This consortium of electrical circuit board producers and assemblers made their initial investment in 2006 with a total of over 500 million USD. Currently, they have three factories that make and put together circuit boards for electrical devices. On the other hand, Intel spent more than a billion dollars in Vietnam, and their factory there is still quite important to the company's output. Importantly, reliable sources have revealed that this American semiconductor firm is considering seeking more capital in order to broaden the scope of its project at the SHTP in Ho Chi Minh City. Together, the investments of Qualcomm, Texas Instruments, NXP Semiconductors, SK Hynix, and Hayward Quartz Technology—among other multinational companies—in the Vietnamese semiconductor business create an ecosystem of more specialized chips. Along with the influx of foreign direct investment (FDI), Vietnam is seeing an increase in high-quality, value-added investment projects. Because of its ability to host chip testing, design engineer training, and the construction of facilities for the production of semiconductor materials and components, Vietnam is a popular destination for investors seeking to launch a semiconductor industry. The design stage is highly appreciated and considered vital in the semiconductor business; Vietnam is attracting large-scale investment in chip design. What makes Vietnam so appealing? The global chip, component, and semiconductor manufacturing sectors have been plagued by supply chain difficulties following the COVID-19 epidemic. Vietnam is one of several nations benefiting from the reorganization of production chains brought about by this climate; many of the world's top chip firms have set up shop in Vietnam. Infineon Technologies Asia-Pacific President and CEO Mr. CS Chua claims that Vietnam's young population and large population (almost 100 million) make the country a promising market, rising to prominence as a top destination for technical talent recruitment by international corporations. There are a number of benefits to entering the semiconductor industry in this economy of almost 100 million people, such as a large and young population and an increasing supply of skilled individuals in the electronics industry. Thanks to its low labor costs and strategic position in Southeast Asia, Vietnam provides a climate that is favorable to business. The Vietnamese government is enticing international investment and commerce while it adjusts the legal framework to match global standards. On the other hand, Vietnam is home to a vibrant group of local entrepreneurs who are both ambitious about the country's future and open to new ideas and experiences. Steps to join the multibillion-dollar industry Growing demand for semiconductor chip goods in many different sectors is driving rapid market expansion. These sectors include healthcare, AI, automobile production, electronics, and home appliances. The American Semiconductor Industry Association predicts that by 2030, the worldwide market for semiconductor chips will have grown to 1,000 billion USD. The projected sales amount is now approximately 600 billion USD. Thus, by entering the international semiconductor industry, Vietnam will have access to markets that might be worth billions of dollars. Because of the semiconductor industry's growing importance to the world economy, most developed countries have instituted policies to boost the industry while strengthening their links to other countries in an effort to become the industry leaders. Vietnam has risen to the ninth-highest position in the world for electronics exports. Due to the country's present strengths, big tech corporations plan to boost semiconductor component production in Vietnam, which could make it the world's leading chip design and manufacturing hub. According to experts, Vietnam's semiconductor industry has a great deal of untapped potential for growth and international participation. In order to achieve this goal, Vietnam must overcome many obstacles, such as creating a favorable environment for businesses, allocating funds for research and development, collaborating with international partners, and establishing a domestic supply chain. Hardware by TMA Creating the Path for Progress in the Semiconductor Sector When it comes to providing cutting-edge hardware integration solutions, TMA Hardware Lab is now at the forefront. This forward-thinking lab has developed, integrated, and tested hundreds of devices in the Internet of Things (IoT), telecommunications, healthcare, robotics, manufacturing, and smart city applications. Mastery of Technical Areas TMA Hardware Lab's backbone consists of over 200 embedded engineers with a combined depth of expertise. This expert team's dedication to accuracy and quality is evident in the flawless integration of more than 100 devices. Full Range of Services Design, testing, integration, and maintenance are just a few of the many services offered by TMA Hardware Lab. The team has a deep understanding of the significance of maintaining optimal hardware performance and provides customized solutions to address their client's unique requirements. The team's deep understanding of current technology allows them to provide comprehensive project management and top-tier hardware services. Various Technology The Hardware Lab's expertise includes a number of technologies, including chipsets from companies like ESP, Raspberry, NXP, STM, and PIC. They are experts in hardware design, using programs like Altium, Kicad, and OrCA. They are also experts in microcontroller units like ESP32, NXP32, STM32, and PIC32. They are experts in power electronics (including Boost, Flyback, and BLE topologies) and the Internet of Things (IoT), which includes LoRaWAN, WiFi-6, and Wi-Fi HaLow. Maximizing Efficiency through the Use of Hardware Their method relies heavily on hardware integration, which gives companies a bird' s-eye view of the whole production cycle. This method, which improves workflow efficiency and management, demonstrates TMA Hardware Lab's dedication to providing state-of-the-art solutions. The Hardware Lab at TMA Solutions is still a major player in this age of rapid technological development. It helps to pave the way for new innovations and determines the direction the semiconductor industry will take. When it comes to hardware innovation, no one does it better than TMA Hardware Lab, thanks to its outstanding team and relentless pursuit of perfection.

Vietnam's semiconductor sector is booming with global investments. TMA Hardware Lab leads the way with cutting-edge hardware solutions.

Vietnam's Path to Multibillion-Dollar Semiconductor Industry

Vietnam's path to becoming a semiconductor industry leader

Vietnamese tech firms are expected to grow rapidly in both the mid and long-term thanks to rising IT demand around the world and rapid digital transformation at home. Statista, a German company specialising in market and consumer data, said IT services spending is expected to amount to 1.28 trillion USD and 1.39 trillion VND in 2022 and 2023, up 7.9% and 8.8%, respectively.The Vietnamese Ministry of Information and Communications targeted 100,000 digital firms in Vietnam by 2025, a rise of 56.25% from 2021. The telecom segment is expected to grow stably thanks to a rise in the number of broadband subscribers (8-10%), and a boom of 4G and 5G services. Notably, Vietnam has advantages in its IT workforce market.<a href="/vietnam-software-outsourcing">Read more: Vietnam Software Outsourcing in 2023</a>According to HSBC, 51 percent of programmers in Vietnam are 29-30 years old. The hourly wage for. IT outsourcing software development in Vietnam is about 18 USD, equivalent to 64% in other Asian nations and 10% in the US. Therefore, customers from big markets like the US, Japan, the EU and Asia-Pacific have selected Vietnam as an ideal destination for cooperation in IT development.Source: vietnamplus

Vietnam's tech firms optimize IT development with skilled workforce collaboration. This meets global demand and drives digital transformation.

Vietnamese tech firms have room to grow