Vietnam’s semiconductor sector is expanding quickly, attracting foreign investment and boosting exports. Understanding how this growth can be turned into a deeper, higher‑value domestic supply chain is crucial for the country’s future economy.

According to FedEx’s report, Vietnam’s semiconductor exports grew at a compound annual growth rate of 31.8% from 2006 to 2025, reaching $32.4 billion in 2023. This rapid rise places Vietnam among the fastest‑growing chip exporters in the region.

Thomas Pang, acting CEO of Neuron Digital Group, said that Vietnam’s semiconductor activities remain concentrated in design, packaging and testing, while upstream activities such as wafer fabrication are still limited. The lack of fabrication and material production means the country relies heavily on imported inputs.

Experts said that domestic mastery of high‑value stages depends on stronger supply‑chain participation, technology absorption and skilled workers. Without deeper involvement of local firms, the benefits of foreign‑direct investment may not translate into advanced domestic capabilities.

Pang recommended that Vietnam build specialised capabilities, keep policies stable and predictable, and coordinate agencies similar to Singapore’s Economic Development Board model. He also stressed the need for digital infrastructure such as AI, digital twins and real‑time data to improve manufacturing efficiency. The Ministry of Science and Technology reported that by late 2025 Vietnam had about 170 foreign‑direct‑investment semiconductor projects with registered capital near $11.6 billion.

To climb the semiconductor value chain, Vietnam must turn its export momentum into a robust domestic ecosystem, supported by skilled talent, coordinated policy and modern digital tools. Doing so will create higher‑value jobs and strengthen the national economy.