Vietnam has included semiconductors as a 30-50 year development priority, and institutions are optimistic about its economic development
The Vietnamese government has included the semiconductor industry as one of the national development priorities for the next 30-50 years, and has attracted investment from large semiconductor industry companies from countries/regions such as the United States, South Korea, Japan, and Europe. Multiple financial institutions have stated that the development momentum of semiconductors will drive Vietnam's economic growth. In addition, investors can invest in Vietnam's equity funds to participate in future growth.
The National Semiconductor Industry Strategy of Vietnam states that the goal is to make Vietnam a center for semiconductor chip industry design, packaging, and testing by 2030.
US President Biden visited Vietnam in 2023, and subsequently announced that the US will invest in Vietnam's semiconductor industry under the Chip Act to achieve supply chain diversification and reduce dependence on China. The US will invest $500 million to enhance semiconductor training, cybersecurity, and business environment in seven target countries/regions, including Vietnam. Among these countries/regions, Vietnam is given priority consideration.
The research team of Risheng Vietnam Opportunity Fund analyzed that as the industry seeks to transfer to areas outside of China, Vietnam continues to be favored by foreign investors due to its advantages in population, land, political and economic environment, low interest rate policies, and expansionary currency. In particular, the new wave of investment in the electronic manufacturing industry driven by artificial intelligence (AI) is expected to bring strong momentum to Vietnam's overall economic growth.
The manager of China Trust Vietnam Opportunity Fund stated that the Vietnamese stock market has risen by over 10% since 2024, with chemical stocks showing active performance. Representative company DCG has risen nearly 35% this year, mainly benefiting from its production of yellow phosphorus, which is an important raw material for semiconductor manufacturing.
Nissin Vietnam Opportunities Fund pointed out that according to data from the Vietnam Bureau of Statistics, Vietnam's exports and imports in the first two months of 2023 were $59.34 billion and $546.2 respectively, with a trade surplus of $4.72 billion, reaching a new high since 2009. According to the March report of the International Monetary Fund (IMF), Vietnam's GDP target for 2024 is expected to reach nearly $470 billion, indicating strong economic growth momentum.
The fund manager stated that the Vietnamese parliament is expected to issue a new law this year, which will use the raised funds to support the development of the high-tech industry.
US President Biden visited Vietnam in 2023, and subsequently announced that the US will invest in Vietnam's semiconductor industry under the Chip Act to achieve supply chain diversification and reduce dependence on China. The US will invest $500 million to enhance semiconductor training, cybersecurity, and business environment in seven target countries/regions, including Vietnam. Among these countries/regions, Vietnam is given priority consideration.
The research team of Risheng Vietnam Opportunity Fund analyzed that as the industry seeks to transfer to areas outside of China, Vietnam continues to be favored by foreign investors due to its advantages in population, land, political and economic environment, low interest rate policies, and expansionary currency. In particular, the new wave of investment in the electronic manufacturing industry driven by artificial intelligence (AI) is expected to bring strong momentum to Vietnam's overall economic growth.
The manager of China Trust Vietnam Opportunity Fund stated that the Vietnamese stock market has risen by over 10% since 2024, with chemical stocks showing active performance. Representative company DCG has risen nearly 35% this year, mainly benefiting from its production of yellow phosphorus, which is an important raw material for semiconductor manufacturing.
Nissin Vietnam Opportunities Fund pointed out that according to data from the Vietnam Bureau of Statistics, Vietnam's exports and imports in the first two months of 2023 were $59.34 billion and $546.2 respectively, with a trade surplus of $4.72 billion, reaching a new high since 2009. According to the March report of the International Monetary Fund (IMF), Vietnam's GDP target for 2024 is expected to reach nearly $470 billion, indicating strong economic growth momentum.
The fund manager stated that the Vietnamese parliament is expected to issue a new law this year, which will use the raised funds to support the development of the high-tech industry.