Vietnam will soon become the center of the semiconductor industry

More than 30 activities and discussions in developing artificial intelligence, the automotive industry, semiconductor chips, and ecosystems chaired by the Prime Minister at WEF Davos 2024 show that Vietnam has great potential to attract investment into these industries.

"Europe is very famous for its automobile, semiconductor chip or artificial intelligence fields. Therefore, Vietnam and the EU can become partners to develop these industries in the future," said Leif Schneider, Deputy Chairman of the Legal Committee, Association of European Businesses in Vietnam (Eurocham).

Prime Minister Pham Minh Chinh spoke at the World Economic Forum. Photo: VGB/ Nhat Bac

A representative of Eurocham Vietnam said that the country has significant achievements in software development and economic growth.

At the same time, cooperation with EU partners will help Vietnam achieve its goal of becoming a new center of the semiconductor industry in the ASEAN region.

"This is even more significant as EU countries are making efforts to increase their competitiveness with other leading economies in Asia. Vietnam has the potential to become one of the EU's most important partners,” Leif Schneider said.

"Many European companies expect to double investment in Vietnam, which is clear evidence of the cooperation potential between Vietnam and the EU. Leif Schneider also expressed his belief that the two-way trade will continue rising and that the EU's investment in Vietnam will start to increase in 2024.

Sharing Leif Schneider's view, Charaf Kadri, managing director of Sandoz Vietnam said the EU witnessed outstanding and dynamic growth of Vietnam over the past decade.

"Vietnam is becoming increasingly attractive and a favorite investment destination for foreign investors, particularly in the era when artificial intelligence has emerged to become a growth driving force," said Charaf Kadri.

Prime Minister Pham Minh Chinh and Hungarian Prime Minister Viktor Orban attend the Vietnam-Hungary Business Forum - Photo: VGP/Nhat Bac

The EU is one of the biggest foreign investors in Vietnam and the biggest trade partner of ASEAN, and the Vietnam - EU partnership would help further drive investment from all 27 EU member countries to Vietnam.

Through the World Economic Forum, the Prime Minister has shown Vietnam's interest in the development of the world economy. This could turn Vietnam into an important geopolitical partner and strengthen its position as a leading destination for global investors.

The increasing attention of international investors to Vietnam is also one of the outstanding results of Prime Minister Pham Minh Chinh's trip.

EU's interests in Vietnam's economy

Prime Minister Pham Minh Chinh's visit to Switzerland, Hungary, and Romania is considered to contribute to tightening the relationship between Vietnam and the EU.

According to Leif Schneider, the potential for economic cooperation between Vietnam and Romania, Hungary and Switzerland is very diverse. Vietnam's good relations with the three countries will affect other countries in Europe.

Switzerland is a European country considered a model for many countries in the region, with a reputation for prosperity and reliability in business. Recently, Vietnam has become an important link in the current process of diversification of the global supply chain.

Charaf Kadri believes that the strong bond between Vietnam and Switzerland is important to build an effective economic cooperation relationship.

"Swiss companies have a diverse presence in the Vietnamese market in the pharmaceutical and food industries, logistics, and finance. This presence is driven by numerous innovation initiatives, continuous support in research and development as well as sustainable partnerships with various stakeholders,” he said.

During the visit of Prime Minister Pham Minh Chinh, 19 cooperation agreements were signed, creating a premise for strengthening cooperation in the future.

With Hungary, the two countries have now established a comprehensive partnership. In trade relations, Vietnam and Hungary committed to increasing bilateral turnover to 2 billion USD.

Vietnam, US Celebrate Partnerships in Digital Workforce Development Program On January 23, the US Agency for International Development (USAID) and the National Innovation Center (Vietnam's Ministry of Planning and Investment) held a closeout ceremony ...

Asia House: Vietnam's Economy Will Achieve Outstanding Achievements in 2024 Asia House Annual Outlook 2024 assesses that Vietnam's economy is likely to continue to grow significantly compared to its regional neighbors in 2024, with its ...

Asia House Annual Lookout 2024: Vietnam Leads Trade Growth In Asia According to UK-based research organization Asia House, Vietnam and Thailand are leading trade growth as Asia battles economic recession.