The world is rapidly changing, largely due to the fourth industrial revolution, particularly artificial intelligence and semiconductors, which are reshaping global order.
Consequently, the “struggle for mastery of strategic technology” has become a hot topic in the global technology sector. Strategic technology plays a crucial role not only in civilian technology but also significantly impacts national security and global power.
With the rapid development of technologies like artificial intelligence (AI), 5G, 6G, quantum computing, and self-driving cars, the strategic technology industry is attracting significant attention from superpowers like the United States, China, and other nations.
For example, semiconductors, with major corporations like US-based Intel, NVIDIA, and Qualcomm, or Taiwan Semiconductor Manufacturing Company (TSMC), are not only the foundation of modern technology but also crucial to national military and security systems. The semiconductor war will be decisive in determining the position and power of nations in the international arena.
Therefore, achieving self-reliance in technology, developing core technologies, and strategic technologies, has become a top priority in the national security strategies of many countries and territories.
This reality requires Vietnam to fundamentally change its thinking on many fronts, along with a wise approach, including investment in science, technology, and innovation. This context necessitates sound policy directions and decisive action to make science and technology the key driving force for national development, as emphasized in Resolution 57 of the Politburo.
To further clarify the pressures, opportunities, core concepts like “strategic technology,” and necessary breakthrough solutions, a Dân trí reporter spoke with Dr. Hà Huy Ngọc, Deputy Director in charge of the Policy Research Center, local and regional economic strategies, and territories (Vietnam and World Economics Institute).
National Strategic Technology: Concepts and Importance
In your opinion, what core criteria should be used to define and identify “national strategic technology” to best suit Vietnam’s context and resources?
- Currently, there is no specific, official definition of strategic technology, as each country has its own conceptions, often based on its strengths in science and technology (S&T).
In our view, strategic technology encompasses advanced, modern, core technologies, with the state prioritizing investment, leading to national development, accelerating economic growth, improving productivity and national competitiveness, providing the foundation for new industries, and having strategic importance for national defense and security.
Dr. Hà Huy Ngọc, Deputy Director of the Policy Research Center for Local and Regional Economic Strategies and Territories (Photo: Quyết Thắng).
Strategic technology products are formed from technologies in the strategic technology catalog, with superior quality, features, added value, and high localization ratios, participating in the global technology supply chain, and playing a crucial role in achieving the strategic goals of becoming a high-income country by 2045 and ensuring national defense and security.
Accordingly, each country chooses its strategic technology areas: For example, the US chooses semiconductors, AI, military, and healthcare; the UK chooses basic science, green energy, fintech; France chooses aerospace technology, nuclear energy, medicine, and pharmaceuticals; South Korea chooses semiconductors, electric vehicles, and telecommunications; China chooses AI, 5G… or Japan chooses robots, materials technology, and electronics.
In the context of competition for strategic technology mastery and ensuring technological sovereignty globally, what are the biggest opportunities and challenges for Vietnam today?
*– Opportunities for developing strategic technology:
Strategic location: Vietnam has a favorable geographic location to develop strategic technologies, especially in the intense competition of the global technology sector. Being centrally located in Southeast Asia facilitates connections with major regional markets like Singapore, Malaysia, Thailand, and Indonesia.
This makes Vietnam an ideal location for establishing production and distribution bases for technology in the region. Furthermore, with its geographic proximity to China and India – two large markets with high demand for technology products – Vietnam can leverage this to expand exports and attract investment from companies seeking access to these markets.
Given the shift in the technology value chain to Southeast Asian countries, Vietnam has the necessary conditions and factors to develop the semiconductor industry.
Location and geopolitical position: Vietnam is currently considered the most advantageous country in ASEAN. The interest and presence of US and Japanese companies in the semiconductor sector demonstrate that these countries highly value Vietnam’s role in the semiconductor industry value chain.
Special Government Attention: The Party and Government recognize the importance of strategic technology in socio-economic development, national security, and are highly committed to pursuing and developing the semiconductor industry, are developing a strategic technology development plan, and are providing maximum support for foreign investors, particularly US investments in Vietnam’s semiconductor supply chain.
Vietnam continues to improve its policy and legal frameworks on investment, enterprises, and public-private partnerships between the state, enterprises, research institutions, and training facilities in the sector.
Domestic technology market with high potential due to the growth of the electronics industry and consumer demand: The electronics industry, with its core products being electronic components, complete smartphones, phone components, assembled televisions, tablets, and computers, plays a crucial role as a key customer for the strategic technology industry.
Vietnam has a sizable potential domestic market for semiconductor products with a population of 99 million, with an average age of 33, and 69% of the population aged 15-64 having a high demand for modern consumer electronics.
Increased income and living standards lead to increased demand for electronic products. This is also a factor that increases the market size of semiconductors in Vietnam.
Initial achievements in indigenous strategic technology capabilities: In recent years, Vietnam has achieved significant progress in economic development based on innovation and the application of scientific and technological advancements.
In recent years, Vietnam has achieved significant progress in economic development based on innovation and the application of scientific and technological advancements.
Vietnam currently ranks highly in terms of innovation capacity among developing countries, according to the 2022 Global Innovation Index (GII) by the World Intellectual Property Organization (WIPO); ranked 48th out of 132 countries (ranked 4th in Southeast Asia, behind Singapore – 7th, Malaysia – 36th, and Thailand – 43rd).
Vietnam’s innovation startup ecosystem ranked 54th globally and 12th in Asia-Pacific in 2022 (according to Startup Blink). Some Vietnamese semiconductor research and inventions have already been applied in specific industrial sectors.
Some Vietnamese semiconductor products are now being exported to several countries and territories, including the US and Japan, which are key markets.
Advantage of human resources: Vietnam’s large workforce, relatively high skill levels, rapid trainability, and affordable costs are significant advantages. The government, universities, and enterprises have been investing in and promoting the training of human resources for the strategic technology sector.
Currently, 35 universities are training students in relevant strategic technology fields. Next year, universities are projected to enroll over 1,000 students specifically in chip design, and related disciplines are expected to enroll around 7,000 students. This number is projected to increase by 20-30% annually.
– Challenges:
Shortage of high-quality, high-level human resources: This is a major bottleneck in attracting large technology corporations to relocate their research, development, and production facilities to Vietnam.
The number of Vietnamese engineers participating in strategic technology is not yet strong in terms of quality and quantity; the structure is not yet complete, particularly lacking chief project managers, architects to coordinate and develop new semiconductors. Vietnamese engineers’ English proficiency and international work experience are still weak.
Lack of attractive talent policies for foreign human resources: Currently, over 2,000 Vietnamese are working in large semiconductor corporations in countries like the United States, South Korea, Japan, Taiwan, and Europe.
This is a crucial resource for the development of this industry in Vietnam. To promote development, it’s necessary to establish competitive policies and benefits to attract this group of personnel to Vietnam.
Training capacity and scale at training facilities still have issues: The Ministry of Education and Training’s curriculum currently does not have a specific semiconductor major. This field is still considered a narrow specialty within Electrical-Electronics or Computer Engineering, so the knowledge taught in these fields and schools lacks consistency and standardization.
Leading Vietnamese universities, such as Hanoi National University, Ho Chi Minh City University of Technology, and Da Nang University, have made and continue to make changes and improvements to their programs to closely align with the labor market needs in the semiconductor sector.
Most institutions still lack licensed chip design labs and tools for students to practice and gain hands-on experience in the field.
Vietnam has not yet established a complete strategic technology production ecosystem: The country currently lacks chip manufacturing plants with complete equipment for semiconductor production and quality control.
Most chip manufacturing plants are located in the US, Japan, South Korea, and China, where most design and manufacturing companies are headquartered. While significantly smaller in number, plants in Southeast Asia are primarily located in Singapore and Malaysia.
Foreign technology corporations investing in Vietnam primarily focus on the design, assembly, and testing of chips, rather than investing in high-tech semiconductor manufacturing.
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