Vietnam Semiconductor & Electronic Manufacturing Market Research Report: Forecast (2025-30)

Market Insights & Analysis: Vietnam Semiconductor & Electronic Manufacturing Market (2025-30):

The Vietnam Semiconductor & Electronic Manufacturing Market is estimated to grow at a CAGR of around 9.45% during the forecast period, i.e., 2025-30. The Vietnam Semiconductor & Electronic Manufacturing Market growth is due to the shift in global supply chain, increasing penetration of 5G internet services and electronic devices, increasing foreign investments in the sector, the government support, increasing integration of AI, ML, Cloud, etc., increasing adoption of electric vehicles, and others.

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The consumer's awareness of green products has increased lately due to the regular promotion of renewable sources and energy by the government. It, along with the tax relaxations, has led to an increase in the ownership of electric vehicles. VinFast, a Vietnamese automotive manufacturer, sold about 87,300 EV units in 2024. Power sources in such automotive batteries are required, which need semiconductors for operation, as they convert a DC power supply to AC. Thus, the increasing demand for EVs, which fuels the demand for semiconductors and electronic components, hence surges the market growth.

The increasing demand for wireless electronics and technologies has risen, leading to an increase in the utility of IC chips, logic circuits, system-on-chip, power management circuits, etc. These chips and circuits are integrated across multiple sectors such as telecom, automotive, IT, manufacturing, and others, thus influencing the demand. Hence, the increasing utility of electronic and semiconductors across various sectors including automotive, the government support, advances in the technology, etc., further boosts the demand for semiconductors and electronics manufacturing in Vietnam.

Vietnam Semiconductor & Electronic Manufacturing Market Driver:

Tariff War Between Leading Economies Driving Market Growth – The investments in the manufacturing sector, including semiconductor and electronics, have surged in Vietnam due to the increasing US-China tariff war, government support, increasing demand for electronic goods, etc. The increasing strain between the two leading semiconductor and electronic manufacturing countries US and China, has led manufacturers such as Apple, Logitech, SharkNinja, etc., to diversify their units to other countries for the manufacturing and export of the goods. For instance, Samsung announced to invest USD1.8 million to establish a new OLED manufacturing unit in Vietnam in 2024. Similarly, a US-based firm, Amkor Technology, has invested USD1.6 million in its chip factory in Vietnam to develop next-generation semiconductor chips in 2023.

As US manufacturers were dependent on China for the manufacturing of semiconductors & electronic components, the increasing tension has led the units to establish and set up new manufacturing units in nations with advanced machinery, like Vietnam. Hence, the increasing cross-border tariff of China and the US, and lower tax rates have supported the growing investments and establishments of the market manufacturers in the nation, thus driving the market growth.  

 Vietnam Semiconductor & Electronic Manufacturing Market Opportunity:

Favorable Government Policies Developing Market-Friendly Environment – The government is supporting the market to boost economic growth and digitalization of the nation, through the initialization of the workforce training program, C = SET + 1 plan, tax reduction, international partnership in high-tech parks, etc.

To support the semiconductor and electronics industry and attract foreign investments, the government of Vietnam has undertaken several initiatives, including C = SET + 1. The plan is fragmented into 3 different phases for a particular set of years, focusing on different aspects of the industry. Phase 1 of the strategy focuses on the establishment of at least one small-scale chip manufacturing plant and over 100 semiconductor design companies. It also aims to train and develop more than 50,000 engineers from 2024 to 2030. This has pushed the domestic manufacturers to expand their business in the country.

Additionally, the Corporate Income Tax (CIT) initiative of the government with a reduced tax rate of about 10% on the manufacturing, development of the tech sector, including semiconductors and electronics. Such tax exemptions and reductions are made to attract investment and global leaders to the high-tech parks, such as Hoa Lac Hi-Tech, etc., in the country. Thus, the strategies, plans, lower taxes, investments, training programs, etc., create a business-friendly environment to attract potential manufacturers to Vietnam.

Vietnam Semiconductor & Electronic Manufacturing Market Challenge:

Shortage of Skilled Labor – The manufacturing units of the market suffer greatly due to the shortage of skilled labor. The aging population, lack of training, inadequate ecosystem, etc., are leading to the growth in unskilled labor. The manufacturing units, especially of the latest advances such as semiconductors and electronics, depend on the FDI for the growth of the market in the country. This is due to the low ownership and consumption of the products in the domestic market. The market in Vietnam is driven by foreign or joint ventures, with approximately 174 ongoing projects worth USD11.6 billion in 2024. However, the domestic manufacturers such as FPT, Viettel, etc., are extensively researching electronic chips, yet their contribution is limited because of the underdeveloped ecosystem. Thus, the inadequate ecosystem, unskilled labor, and the lower domestic ownership hinder the market growth.

Vietnam Semiconductor & Electronic Manufacturing Market Trend:

Integration of AI & ML in Manufacturing Machinery – The advancements in technology, such as AI, ML, IIoT, etc., and their integration in the network servers have surged due to the increasing demand for automated manufacturing processes, smart pattern identification and optimization according to the workload, analysis and prediction of maintenance, etc. The integration of Industrial Internet of Things (IIoT) into the Vietnam semiconductor & electronic manufacturing machinery is evolving the market, due to the automated manufacturing process, which reduces the workload of humans. It results in the efficient facilitation of the units as humans are able to focus on the other crucial process, which demands high supervision and monitoring. Such integration improves the quality of the manufacturing due to the well-trained ML models, which reduces the human errors incurred during production. 

The smart machine with these technological advances optimizes the production process, resulting in reduced waste and increased durability of the machinery. These advancements correlate the data with real-time data, hence predicting the maintenance, monitoring the equipment failures, inventory level, etc. Thus, the reduced load of the workforce, efficient management of the inventory, optimization of the manufacturing procedure, and regular maintenance updates have led to an increase in the acceptance of the IIoT, AI and ML integrated manufacturing equipment among the manufacturers such as Intel Vietnam, Samsung Electronics, etc., hence fueling the market growth in the country.      

Vietnam Semiconductor & Electronic Manufacturing Market (2025-30): Segmentation Analysis

The Vietnam Semiconductor & Electronic Manufacturing Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2025–2030 at the country level. Based on the analysis, the market has been further classified as:

Based on Distribution Channel:

• Direct Sales (OEMs)
• Distributors/Wholesalers
• Online Sales Platforms
• Retail

Based on distribution channel, the direct sales (OEMs) segment holds the largest market share of around 61%.  This market share is due to the presence of global OEM manufacturers, low-cost workforce, reduced taxation, shift in global supply chain, technological advancements in semiconductors & electronics, etc. Vietnam is one of the global suppliers of semiconductors & electronics, because of its location to the global consumers such as South Korea, China, the US, Japan, etc. The export of the country is further boosted by the shift in the trade supply chains caused due to the US-China trade war. The increasing trade activities have pushed manufacturers such as Samsung, LG Electronics, Amkor Technology, etc., to increase their production and their supply chain across multiple regions, leading to direct sales of the products.

The growing investments in the technologies and FDI inflow in the semiconductors due to the increasing adoption of electronic devices and EVs., have further boosted the manufacturing of the upgraded products, increasing the supply of products via direct sales channel.  

Based on Application:

• Consumer Electronics (Smartphones, TVs, Wearables)
• Automotive Electronics
• Industrial Electronics (Automation, Robotics)
• Telecommunications (5G Infrastructure, Networking)
• Computing & Data Centers
• Medical Devices
• Others

Consumer electronics (smartphones, TVs, wearables) hold the largest market share of about 56%. This is due to the increasing penetration of electronic devices, especially smartphones, the adoption of 5G internet services, government support, Industry 4.0, rapid advancements in technology, etc. The electronic devices, such as smartphones, wearables, TVs, etc., are gaining popularity among individuals, especially Gen-Z and millennials, due to the increasing remote working culture, rise in disposable income, the emerging gaming & entertainment industry, rising e-commerce, etc.

As per the Global System for Mobile Communications Association (GSMA), there were approximately 168.5 million cellular connections, and about 99.2% of internet users accessed the internet from smartphones in 2024. The integration of various chips and electronic components in smartphones and other devices, for storage, for processing different applications & features, touch controllers, etc., has increased the sales of these components in the country. Thus, the increasing need for such devices among individuals and the latest upgradations fuel the demand for semiconductor & electronic units among consumers, hence, facilitating its market share across the nation.  

Vietnam Semiconductor & Electronic Manufacturing Industry Recent Development:

• 2025: Amkor Technology announced plans to triple the annual capacity of its semiconductor facility in Bac Ninh, Vietnam, from 1.2 billion to 3.6 billion items.
• July 2024: Foxconn Technology Group secured a license to invest $551 million in two smart-tech manufacturing projects in Quang Ninh, Vietnam, expanding its regional production capacity.

Gain a Competitive Edge with Our Vietnam Semiconductor & Electronic Manufacturing Market Report

1. Vietnam Semiconductor & Electronic Manufacturing Market by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. Vietnam Semiconductor & Electronic Manufacturing Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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