Vietnam semiconductor exports grew 31.8% annually through 2025

By Amara Osei

Where is Vietnam gaining ground?

Vietnam’s semiconductor exports grew at a compound annual rate of 31.8% from 2006 to 2025, according to FedEx, while semiconductor imports increased 30% over the same period.

FedEx’s report, “From AI to EVs: How APAC Semiconductors Drive the Global Innovation Map,” describes Asia-Pacific as the centre of the global semiconductor ecosystem, generating approximately 58% of industry revenue. It links Vietnam’s gains to manufacturing shifts supported by the country’s electronics base, regional trade links and a competitively priced workforce.

Vietnam exported $32.4 billion in integrated circuits in 2023, demonstrating its growing participation in regional and global semiconductor trade. By late 2025, the Ministry of Science and Technology counted about 170 foreign direct investment semiconductor projects with registered capital close to $11.6 billion.

Ee-Hui Tan, managing director of FedEx Vietnam and Cambodia, said: “Vietnam is becoming an increasingly important part of APAC’s semiconductor ecosystem, as more semiconductor and high-tech companies expand their presence in the country.”

Samsung, Intel, MediaTek and other technology groups give local companies access to technology, manufacturing processes and international customer networks. The electronics-components market is forecast to reach $145 billion by the end of 2026.

Takeaway: Trade and investment are expanding, but the next stage depends on moving beyond design, packaging and testing.

Can foreign investment build domestic capability?

Rising investment and exports do not automatically produce control of high-value stages. The report says FDI spillovers depend on local firms’ supply-chain participation, technology absorption and their capacity to develop technically advanced products and services.

At the Vietnam Innovation Summit 2026 in Ho Chi Minh City, Thomas Pang, acting CEO of Neuron Digital Group, said Vietnam’s semiconductor work remains concentrated in:

• chip design;
• packaging; and
• testing.

Upstream activity remains limited in materials, equipment and wafer fabrication, Pang said. Advanced downstream applications and system integration are also still developing.

Most suppliers serving Vietnam’s semiconductor industry remain foreign-owned, and many inputs are imported. Calvin Yong, Yole Group’s regional director for Southeast Asia, India and Oceania, said Vietnam faces shortages in domestic supply, fabrication capability and manufacturing-management experience.

Developing domestic supply networks would help Vietnamese companies integrate progressively into international corporations’ production chains, Yong said.

Takeaway: Foreign projects have brought capital and market access, but Vietnam still lacks a complete domestic supplier base.

Which capabilities should Vietnam prioritise?

Under Vietnam’s semiconductor-industry development strategy to 2030, with a vision to 2050, the country aims to participate in every stage of the global value chain, from design and fabrication to packaging and testing. Achieving that goal requires clear priorities and effective resource allocation.

Pang said Vietnam should build specialised capabilities around its existing strengths rather than spread resources too thinly. Because semiconductor investments usually span five to 10 years, he said stable, predictable policies and smooth coordination among agencies are crucial.

He also recommended examining Singapore’s Economic Development Board model, which brings relevant agencies together to promote and support investment.

Pang identified digital infrastructure as another requirement. Advanced manufacturing produces data on energy, equipment, environmental conditions and logistics. AI, digital twins and real-time data can support simulation, monitoring and production optimisation, improving efficiency and reducing operating costs.

Takeaway: Vietnam’s policy test is whether it can turn a five-to-10-year investment horizon into stable rules, coordinated agencies and specialised production skills.

What could move Vietnam upstream?

Yong said developing fabrication could connect chip design with commercial production, but the route requires substantial capital, advanced technology and experienced personnel. Investment decisions must reflect market demand and Vietnam’s actual capabilities, he said.

The workforce gap extends beyond engineering education. Vietnam faces shortages of professionals experienced in:

• factory operations;
• production management; and
• advanced packaging.

Yong called for stronger international cooperation and opportunities for local workers to gain hands-on experience. Pang also cited Vietnam’s location, political stability, young workforce and policymakers’ attention as advantages, but said the country now needs ecosystem depth built through consistent strategy, coordinated governance and smart infrastructure.

As global semiconductor supply chains are restructured, the experts’ case for Vietnam depends on accumulating knowledge, technology and management expertise, not only attracting projects.

Takeaway: Vietnam can capture more value if it develops suppliers, fabrication and experienced operators alongside its existing foreign-invested projects.