Việt Nam’s semiconductor industry poised to bolster industrial real estate: experts
Việt Nam has a favourable location in Southeast Asia, a large supply of necessary rare-earth elements for semiconductor chip production, and a stable political environment. It is also actively pushing for the development of the semiconductor industry with favourable policies.
HÀ NỘI — The growth of Việt Nam’s semiconductor industry will facilitate the development of the industrial real estate sector, and Việt Nam needs to focus more on creating favourable conditions for investors, experts said.
According to Thomas Rooney, Senior Manager of Industrial Services at Savills Vietnam, Việt Nam is becoming a top destination for semiconductor investors.
Việt Nam has a favourable location in Southeast Asia, a large supply of necessary rare-earth elements for semiconductor chip production, and a stable political environment. It is also actively pushing for the development of the semiconductor industry with favourable policies.
According to other Savills Việt Nam experts, while customers renting industrial properties in the South are usually rubber, plastic, foodstuff and beverage businesses, more computer and electronics firms do so in the North.
As the wave of semiconductor investment grows, it will also facilitate the development of industrial real estate in the North.
Rooney noted that rising investment in semiconductor manufacturing was leading to a rise in demand for factories and industrial parks that satisfy the infrastructure requirements of the industry, including a stable power source, high internet speed and effective water treatment systems.
Upgrading the quality of these factories to attract investors was crucial, he said.
Việt Nam’s semiconductor industry has a lot of growth potential. It has attracted many top companies in semiconductors over the years, including Samsung, Qualcomm, Infineon and Amkor, with factories and factory expansion projects worth billions of dollars, according to experts.
For example, in 2022 Samsung opened its largest research and development centre in Southeast Asia in Hà Nội.
The country’s semiconductor industry is expected to reach over US$6.16 billion by the end of 2024, helping it become one of the world’s most important production hubs for semiconductor companies worldwide.
Rooney said that the Government and businesses needed to work together to improve the investment climate, infrastructure and manpower to create suitable conditions for the development of the semiconductor industry and industrial real estate.
He said that Việt Nam’s current infrastructure was still underdeveloped, especially its power transmission lines during peak months and power supply systems.
“The semiconductor industry requires a great deal of power, so Việt Nam needs to speed up its large-scale energy infrastructure projects,” he said.
He also noted that Việt Nam was lacking highly skilled engineers for the semiconductor industry, and it needed to tackle this challenge to attract more investment from international technology companies.
Việt Nam’s electricity development plan for 2021 – 2030 prioritises stable supply of power for investment projects and targets sustainable energy development. The country is also developing high-tech industrial parks, such as the Việt Nam National Innovation Centre in Hà Nội, in order to create favourable conditions for foreign investors.
The Ministry of Planning and Investment has also been instructed to work with the Ministry of Information and Communication, the Ministry of Education and Training, and other relevant agencies to build a programme to develop manpower for the semiconductor industry, which aims to train 50,000 qualified workers by 2030.
The semiconductor industry supplies important components for the production of modern electronic devices, such as microprocessors and data storage devices.
According to the US Semiconductor Industry Association, the global semiconductor market is expected to reach US$600 billion by 2025, up 14 per cent from 2023, thanks to the increasing demand for electronic devices. VNS
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