Vo Xuan Hoai, deputy director of the National Innovation Centre. - Photo: bnews.vn
HANOI: Vietnam’s semiconductor production cooperation with the US will not be affected by Trump’s potential restriction of computer chip exports, according to Vo Xuan Hoai, deputy director of the National Innovation Centre.
US President Donald Trump’s administration is considering restricting artificial intelligence (AI) chip sales to China, Reuters reported.
Trump met with Jensen Huang, chief executive officer of the US leading chip producer NVIDIA, to discuss the matter at the end of January, according to NHK.
Huang told the Japanese outlet that the discussion focused on “the importance of strengthening US technology and AI leadership”.
The US President last week signed three executive orders, increasing tariffs on imports from Canada, Mexico and China, with more to be announced for other countries.
While these drastic moves raise concerns as they may disrupt the global supply chain, Vo Xuan Hoai, deputy director of the National Innovation Centre (under the Ministry of Planning and Investment) said they wouldn't affect Vietnam’s technology cooperation with the US.
“The US wants to increase domestic production of advanced, high-tech chips, but will still outsource the production of other types to its partners, including Vietnam,” he told Vietnamnet.vn.
“Cooperation between Vietnam and the US – including semiconductor manufacturing and other innovative projects – won’t be affected, or at least hasn’t been.”
Prime Minister Phạm Minh Chinh visits the semiconductor production line at Hana Micron Vina Co., Ltd. in Van Trung Industrial Park, Bac Giang Province. Vietnam has a long-term strategy to develop the semiconductor industry until 2030 and 2050. - Photo: VNA/VNS Photo Duong Giang
The restructuring of the American chip supply chain might help Vietnam attract more foreign investors and encourage domestic businesses to take part more in semiconductor production, Hoài added.
It would increase their capabilities in semiconductor packaging, assembly and testing, which are the stages that are not under the US's strict control.
"Our Prime Minister has warned of a possible global trade war that may happen this year. It is a challenge, but also poses a lot of opportunities," he said.
"The situation will motivate Vietnam to develop private businesses and encourage domestic ones to take part in the global supply chain."
One of the effects of the trade tension is that production will shift from China to other countries, including Vietnam which has been considered an attractive destination for foreign investors, according to Hoai.
Vietnam should take advantage of big tech companies' need to diversify their supply chains, and create favourable conditions for domestic companies to integrate further into the supply chains of foreign-invested companies in the country, he said.
The country has developed a well-structured national strategy for building a semiconductor industry until 2030 and 2050, with clear objectives.
According to Hoai, the US needs skilled workers for this industry and highly values Vietnamese engineers.
The domestic semiconductor industry also has lots of potential and is attracting several overseas startups and experts to return.
In the next five years, Vietnam will be more than capable of expanding production and providing semiconductors for artificial intelligence development and other high-tech innovations, without being hindered by US policies.
"We've got plans to build small-scale semiconductor factories to serve the long-term development of the industry, which is an important step towards increasing domestic capabilities and integrating further into the global chip supply chain." - Vietnam News/ANN
