However, behind these impressive figures lies a larger challenge: how to translate advantages in manufacturing, attracting investment, and assembly and testing into capabilities in design, technological development, and creating higher added value?
Impressive growth
A research report titled “From AI to EVs: How APAC Semiconductors Drive the Global Innovation Map,” published in October 2026 by FedEx in collaboration with Frost & Sullivan, shows that Vietnam’s semiconductor exports achieved a compound annual growth rate (CAGR) of 31.8% between 2006 and 2025. This is the highest growth rate among the eight economies studied, including South Korea, Taiwan (China), Malaysia, Singapore , Thailand, the Philippines, and Japan.
Notably, Vietnam’s integrated circuit (IC) exports reached US$32.4 billion in 2023 alone. During the same period, semiconductor imports also grew at an average rate of 30% per year, reflecting Vietnam’s increasingly deep involvement in the international electronic component manufacturing and trade network.
However, rapid growth does not necessarily mean Vietnam has become a leading semiconductor hub. In 2025, Vietnam will still rank 7th among the 8 economies compared in terms of semiconductor export value, only higher than Thailand . Meanwhile, Taiwan leads with an export value of approximately $170 billion.
This gap highlights the need to view the 31.8% figure in the right context: Vietnam is experiencing strong growth from a significantly lower starting point compared to established semiconductor hubs. This is a positive sign regarding investment attractiveness and production expansion potential, but it is not enough to confirm its ability to master the entire value chain.
The AI wave opens up opportunities to reposition Vietnam.
Vietnam’s opportunity is coming at the right time, as the global semiconductor industry enters a new growth cycle.
According to a FedEx and Frost & Sullivan report, the world is expected to build more than 2,000 new data centers between 2026 and 2035. The development of AI, high-performance computing, electric vehicles , 5G, and the Internet of Things is driving demand for processor chips, memory chips, power components, and specialized semiconductor solutions.
In that picture, the Asia-Pacific (APAC) region accounts for approximately 58% of global semiconductor industry revenue, with increasing specialization. Taiwan plays a leading role in chip manufacturing services, accounting for about 60% of global foundry production; South Korea excels in memory chips and advanced manufacturing technology; and Japan has strengths in materials, equipment, and specialized inputs.
Vietnam, along with Malaysia and several other Southeast Asian economies, is emerging in the downstream stages of the manufacturing chain, particularly assembly, packaging, and testing (ATP).
Vietnam’s advantages lie in its established electronics manufacturing base, a workforce capable of accessing technology, and its ability to attract multinational corporations. Intel’s factory in Ho Chi Minh City is the largest assembly and testing facility in the company’s global network. Amkor in Bac Ninh, with a committed investment of up to $1.6 billion by 2035, is also a notable project, contributing to putting Vietnam on the map of advanced semiconductor packaging investment.
In particular, Intel’s continued expansion, transferring additional assembly and testing lines for server chips from Costa Rica to Vietnam in 2026, demonstrates Vietnam’s strengthening role in the global manufacturing network.
Beyond just factories, Vietnam also has the opportunity to develop businesses supplying equipment, materials, technical services, and supporting technological solutions. This is the condition for gradually forming a semiconductor ecosystem instead of focusing solely on individual investment projects.
From attracting investment to mastering semiconductor technology.
The biggest challenge now is how to avoid being limited to lower value-added stages of the production process. If Vietnam relies solely on its labor and operating cost advantages, it risks becoming a substitute production location in the supply chain, rather than a center with independent technological capabilities and competitiveness.
The World Bank’s 2025 report, “Forging Vietnam’s Semiconductor Future,” also emphasizes the need to upgrade the value chain through human resource development, research capabilities, and innovation. In particular, integrated circuit design, advanced packaging, and the development of shared research infrastructure are priority areas.
This requires Vietnam to implement three groups of solutions simultaneously:
Firstly, we need to develop a team of integrated circuit design engineers, materials experts, and specialists in advanced manufacturing and packaging technologies; and link university education with the practical needs of businesses.
Secondly, we need to encourage domestic businesses to participate more deeply in the supply networks of international corporations, gradually mastering design, equipment, and advanced technical processes.
Third, invest in research infrastructure, laboratories, testing facilities, and a stable power system to meet the specific requirements of the semiconductor industry.
Logistics is also a crucial link that cannot be overlooked. For high-value products, requiring precise delivery and a cross-border production chain, international shipping capacity significantly determines the reliability of a supplier. FedEx stated that the addition of flights from Noi Bai Airport starting in September 2025 will help goods from northern Vietnam reach Asia and Europe by one day.
The 31.8% export growth is a remarkable achievement, but its greater significance lies in the opportunities it opens up. As global supply chains continue to restructure, Vietnam is in a position to attract more international capital, technology, and knowledge. The question is no longer simply how many factories to attract, but how deeply Vietnam can participate in the chip manufacturing process.
Center for Science and Technology Communication