Vietnam has made talent development a top priority to support the country's growth semiconductor industry.
As US-China tensions escalate, the shift in supply chains has positioned Vietnam as a premium hub for international firm's talent cultivation initiatives. While the Vietnamese government aims to train 50,000 semiconductor engineers by 2030 as reported by Vietnam Plus, presently the talent shortage in the country persists.
Long road ahead for talent
The Ministry of Information and Communications (MIC) acknowledges that Vietnam has only enough semiconductor talent to meet 20% of the demand.
Hoang Viet Anh, Deputy General Director of Vietnam's leading semiconductor company FPT, noted that the country has around 5,000 engineers working in approximately 40 companies. This means Vietnam must increase its number of engineers tenfold by 2030 to reach its goal.
FPT has committed to training 10,000 engineers as part of its contribution to Vietnam's semiconductor industry. Major companies such as Viettel and VNPT are actively engaging in research and talent development.
Within the semiconductor supply chain, Vietnam primarily focuses on backend processes like packaging and testing. For example, Intel operates a packaging plant in the country. The Vietnam Institute for Industry and Trade Strategy and Policy (VIOIT) pointed out that while the semiconductor industry encompasses a wide range of activities, Vietnam is currently limited to simpler tasks like packaging.
International firms eye Vietnamese talent
Despite the current shortage of talent and the early stages of meeting the government's goals, Nikkei Asia observes that many foreign companies are highly interested in Vietnam's talent development efforts.
One of the reasons for the growing attention on Vietnamese talent is the ongoing US-China conflict. As supply chains shift to Southeast Asia, the demand for skilled workers follows.
Additionally, South Korea, Taiwan, and the US face domestic talent shortages and are looking to Vietnam as a solution. South Korean company MetisX highlighted that after years of hard work, South Korean professionals often move on to work for major companies like Nvidia.
South Korean firms have been urged to offer more attractive salaries and benefits to retain talent, but it remains difficult for individual companies to achieve alone. The South Korean business community has therefore suggested leveraging the education systems of other countries and relaxing visa restrictions for foreign talent, with Vietnam frequently mentioned as a key candidate for the initiative.
The Taiwan-based Alchip Technologies is also establishing an office in Vietnam and expanding its R&D team there. Vietnam's work ethic and talent appeal have been cited as the factors behind the choice. Comparatively, while Alchip still plans to grow its presence in Japan, the company's size makes expansion in Japan more challenging for them.
Nikkei points out companies such as Marvell, Synopsys, Infineon, Global Unichip, eSilicon, BOS Semiconductors, and ADTechnology all have R&D centers in Vietnam. Businesses are also supporting Vietnamese talent through internship programs and scholarships.
For instance, Samsung Electronics has partnered with the Vietnam National Innovation Center (NIC) to launch a talent training program. Similarly, Pegatron offers scholarships and internships in the region.
Of Vietnam's 240 universities, nearly 160 offer technology-related training, with programs covering semiconductor topics. Furthermore, 35 universities have established dedicated semiconductor departments.
