Vietnam rises as potential semiconductor hub for global manufacturers

Many customers of Bain & Company have said that Vietnam is at the first or second place in their semiconductor investment plan, said Wade Cruse, leader of Bain & Company's customer practice in Asia, at the launch of the company's first office in Vietnam in Ho Chi Minh City Thursday.

There are 40 companies in the semiconductor sector in Vietnam, but 38 are foreign direct investment firms.

U.S. companies Amkor Technology and Intel have set up semiconductor facilities in Vietnam.

In July U.S. Treasury Secretary Janet Yellen has said her country was willing to assist Vietnam in producing semiconductors.

Semiconductors are also set to be a topic of discussion during U.S. President Joe Biden's visit to Vietnam on September 10, according to Reuters.

Cruse said that Vietnam's semiconductor ecosystem was being developed, along with local talents and technology as well as small companies being formed.

Recent industry development supports his claim. U.S. company Marvell Technology in May announced a plan to develop a world-leading integrated circuit design center in HCMC.

On Wednesday the Electronics and Semiconductor Center was launched in Saigon Hi-tech Park.

HCMC has voiced support for further semiconductor research. Its chairman Phan Van Mai said that HCMC was committed to being the center for semiconductor development and the country's innovation hub.