Mr. Truong Gia Binh Expects to Make Vietnam a Hub for the Semiconductor Industry at the World Economic Forum

On January 16 (local time), in Davos, Switzerland, during a business trip to participate in the World Economic Forum (WEF) Conference, Prime Minister Pham Minh Chinh led a discussion with global businesses on fostering collaboration in the development of artificial intelligence (AI), automotive technology, semiconductors, and the interconnected ecosystems associated with these industries. The event was jointly organized by the Ministry of Planning and Investment, the Vietnamese Embassy in Switzerland, and FPT Corporation.

Attending the event were the Minister of Planning and Investment Nguyen Chi Dung, Minister of Industry and Trade Nguyen Hong Dien, Minister of Science and Technology Huynh Thanh Dat, Minister of Education and Training Nguyen Kim Son, Governor of the State Bank of Vietnam Nguyen Thi Hong, Chairman of Ho Chi Minh City People's Committee Phan Van Mai. Representatives of Vietnamese businesses include FPT Chairman Truong Gia Binh and senior leaders of Vietcombank and VinaCapital.

The occasion featured delegates from prominent global corporations, including Google, Mitsubishi Heavy Industries, H&M Hennes & Mauritz, Siemens, Mahindra, PSA International, JANZZ.technology, Qualcomm, and others.

Prime Minister Pham Minh Chinh and delegates at the discussion with global businesses on fostering collaboration in the development of AI, automotive technology, and semiconductors - Photo: VGP/Nhat Bac

During the event, Vietnamese representatives engaged in discussions with both domestic and international enterprises to explore new opportunities and foster investment cooperation in the upcoming period. Businesses outlined their investment preferences within Vietnam, focusing on AI, semiconductors, and the automotive industry. Concurrently, attendees had the opportunity to hear from the Prime Minister and leaders of various ministries and branches, who shared insights on the vision, orientation, and strategies to enhance development, collaboration, and investment attraction within these sectors. The discussions also delved into the stable macroeconomic foundations, peaceful environment, and overall stability and growth of Vietnam.

Representatives from leading global corporations, including Google, Siemens, Qualcomm, and Ericsson, expressed high regard for Vietnam's developmental accomplishments. They expressed the desire that the Vietnamese Government would persist in creating favorable conditions for businesses to invest and thrive in technology, innovation, semiconductors, AI, and strategic infrastructure.

Mr. Scott Beaumont, President of the Asia-Pacific region at Google, said: "We expect the collaboration with the Vietnamese Government to harness AI's potential.

In 2024, our commitment is to make AI accessible to our partners by providing top-tier tools and infrastructure. In Vietnam, we strategically place AI at the core of our collaborations with programmers, startups, game/app developers, and the Government. We focus on leveraging AI to address significant challenges in health management, traffic optimization, and flood forecasting."

During the event, Prime Minister Pham Minh Chinh provided insights into Vietnam's significant achievements in nearly 40 years of innovation and fundamental factors, goals, and major orientations guiding the country's development. Prime Minister emphasized the importance of revitalizing old development drivers and introducing new drivers in critical sectors such as AI, semiconductors, and the automotive industry. The Prime Minister highlighted Vietnam's adoption of a comprehensive development strategy in AI. This involves establishing national data centers interconnected with those of ministries, branches, and localities. Concerning automotive technology, Vietnam focuses on developing electric cars using clean materials, aiming for low carbon emissions, and investing in green transportation. The Prime Minister identified the semiconductor industry as a pivotal new development force, with plans for investment across all three stages of the semiconductor value chain, including design, manufacturing, and packaging. The current focus involves the ongoing development of information technology platforms, human resources, and the implementation of appropriate preferential policies.

FPT Chairman Truong Gia Binh shared insights on the opportunities within Vietnam's semiconductor industry: "The semiconductor industry possesses distinctive characteristics. Originating in the United States in the 1960s, it later shifted to Korea and Taiwan during the 1970s. However, the current landscape reveals a significant demand for the semiconductor industry. However, the workforce, particularly the younger generation in countries like the US, Japan, and Korea, is reluctant to engage due to the industry's rapid growth and strenuous nature. Interestingly, Vietnamese youth display a keen interest in pursuing careers in this sector. To attract young talents into the semiconductor industry, opportunities should be created for them to work in the US, Japan, and Korea. Encouraging collaboration with foreign businesses can position Vietnam as an attractive destination for the industry."

Chairman of FPT Truong Gia Binh shared his insights about Vietnam's opportunities in the semiconductor industry.

FPT has been actively preparing for the past decade in semiconductor technology. In 2022, the Corporation took a significant step by establishing FPT Semiconductor Company and incorporating chip design training content into the curriculum of FPT University. "We, in collaboration with the National Innovation Center (NIC) and the American technology expert organization TreSemi, have established the Vietnam Semiconductor Hub for Education (VSHE). This center is poised to facilitate training an additional 50,000 semiconductor engineers in the coming years. This initiative aims to enhance the quality of human resources, instilling confidence in the regional semiconductor ecosystem and the global value chain", Mr. Binh stated.

Mr. Truong Gia Binh also emphasized that since 2013, FPT has identified AI as a pivotal technology within its digital transformation strategy, both in Vietnam and globally. Over the years, FPT has made substantial investments in the research and development of AI across various facets, including human resources, infrastructure, and data. This concerted effort has successfully translated AI concepts into practical applications, yielding tangible results. Notably, FPT.AI's virtual assistant clinched the prestigious top virtual assistant software award in 2023. Not only underscoring the quality of "Made in Vietnam" tech products in the international market, this achievement is also a motivational force for the team to persist in making Vietnam the AI hub in the region and globally.

FPT boasts over a decade of experience in automotive technology, supported by a cadre of over 4,000 engineers and experts specializing in automotive software and a network comprising over 150 esteemed customers, including prominent global automotive companies. At the end of 2023, FPT established FPT Automotive Company in the United States.  

"We intend to concentrate on pivotal markets, including the US, Europe, Japan, Korea, China, and Vietnam, with a commitment to professionalism and confidence in adhering to industry standards in safety management and software development processes within the automotive sector. We eagerly anticipate ongoing collaboration with leading Original Equipment Manufacturers (OEMs) to expedite the advancement of the automotive industry, an industry increasingly defined by software", he said.

In conclusion, Prime Minister Pham Minh Chinh asserted that despite numerous challenges in 2023, Vietnam remained committed to maintaining macroeconomic stability, controlling inflation, and fostering economic growth. The nation has attracted nearly 37 billion USD in registered FDI capital and disbursing approximately 23 billion USD of FDI capital. The Prime Minister expressed his optimism for businesses to persist in effective and sustainable cooperation and investment in Vietnam. He affirmed Vietnam's commitment to working harmoniously adhering to the principle of balanced interests among the State, people, businesses, and investors, addressing challenges, and sharing solutions collaboratively.