February 16, 2024 /SemiMedia/ -- According to reports, Vietnam recently promised to provide tax breaks and other incentives to semiconductor companies to help develop its local chip industry.

Huynh Thanh Dat, Vietnam's Minister of Science and Technology, said Hanoi's national semiconductor plan will include industry funding through science funds and national joint research with private companies.

"The localization rate of Vietnam's semiconductor industry is low, R&D activities are not synchronized, and high-quality human resources in the semiconductor field are still limited," Huynh Thanh Dat said.

"Vietnam needs to reach technology transfer agreements with leading countries in the chip industry. To this end, local universities are cooperating with employers such as Samsung to offer semiconductor courses," added Huynh Thanh Dat.

Reports indicate that semiconductor companies such as Nvidia and Samsung are seeking to expand their chip operations in Vietnam, which hosts Intel's largest testing and assembly plant in the world and is expected to receive millions of dollars from the U.S. Chip and Science Act.

Vietnam aims to train 50,000 engineers for the industry by 2030. The country has a strong science and technology education base, but a lack of advanced skills limits the broader development of the electronics supply chain.