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During his visit to South Korea on August 1-2, Minister Hung Nguyen led a delegation from Vietnam’s Ministry of Information and Communications (MIC) to meet with key South Korean agencies, including the Ministry of Science and ICT (MSIT) and the Digital Platform Government Committee. The discussions covered in-depth digital strategies and cutting-edge technologies like AI in semiconductors and large-scale AI computation, with both sides sharing a vision for growth in the era of artificial intelligence.The meeting between Vietnam’s Ministry of Information and Communications and South Korea’s Ministry of Science and ICT. Photo by Khanh Van - TTXVN.Vietnam is making significant strides in information and communications technology, with a particular emphasis on AI, and highlighted the importance of international cooperation in developing a skilled workforce. At the meeting, the two ministers pledged to deepen cooperation in AI research and development as well as in semiconductor technology.As part of the visit, Minister Hung toured Seoul Cyber University, where he attended the opening ceremony of a joint training office with Vietnam’s Posts and Telecommunications Institute of Technology—an achievement that underscored the strong partnership between the two institutions. He also participated in the 2024 Vietnam-Korea Digital Forum, creating opportunities for Vietnamese ICT companies to connect and explore partnerships in South Korea.Minister Hung met with Vietnamese students in South Korea, sharing insights into Vietnam’s ICT sector development and encouraging them to contribute to the nation’s growth through technology. The visit strengthened Vietnam-South Korea relations and opened promising new avenues for collaboration in technology and workforce training.Source: vietnam.vnanet.vn

Around the world, AI is reshaping property valuation, enhancing accuracy, efficiency, and reducing errors. In the U.S., companies like Zillow and Redfin are pioneering AI-based automated valuation, while countries like the UK and Japan are also heavily investing in AI application development to support property value predictions and land management.Hoang Cao Long, CEO of Hoang Son Company, highlights that AI dramatically shortens the valuation process by rapidly processing data and integrating diverse information sources, offering a comprehensive perspective on land value. Furthermore, real-time data updates help investors stay on top of market changes.However, for AI to reach its full potential, businesses must overcome data quality challenges and ensure transparent processes. Combining advanced tech with clear management systems will be the key to making AI a sustainable tool in real estate.Source: reatimes.vn

Digital transformation is opening new doors for Vietnamese farmers, allowing them to build a sustainable economy in their hometowns, without needing to migrate. At the "Promoting Agricultural Digitization" conference, the Minister of Agriculture and Rural Development, Le Minh Hoan, emphasized that technologies like artificial intelligence (AI) and automation increase productivity and make production and management more efficient. This, in turn, strengthens the global competitiveness of Vietnamese agricultural products.Minister of Agriculture and Rural Development Lê Minh Hoan discusses the piece 'Digital Village' - Photo: VGP/Ð? HuongDigital technology is also helping to lower costs for agricultural businesses. According to Nguyen Hoai Nam, a representative of the Seafood Association, businesses applying digital solutions can cut costs by 7-25% and meet international standards more easily. Similarly, the wood industry has leveraged digital tools to verify the legal origin of wood, ensuring compliance with the stringent requirements of the EU and other major markets.Minister Le Minh Hoan asserted that digital transformation in agriculture offers a sustainable and long-term path for Vietnamese farmers to escape poverty and prosper on their land. This approach brings economic benefits and represents a meaningful step toward a greener, more sustainable future for rural Vietnam.Source: baochinhphu.vn

Vietnam is quickly becoming a “convergence point” for global tech giants, attracting hundreds of millions of dollars in investment projects. In recent years, foreign direct investment (FDI) has increasingly shifted toward green and high-tech sectors in Vietnam.Over the past decade, tech startup investment has surged in Vietnam; however, the pace has slowed in the past two years amid global economic uncertainty. In the first nine months of 2023 alone, total investment in deals dropped 13%, reaching $427 million, with the number of transactions at its lowest since 2018.Ms. Vy Le from Do Ventures noted that fundraising is becoming more challenging as investors exercise greater caution. Experts emphasize that focusing on core products will be key for startups to attract high-quality investment.Despite the positive investment momentum, Vietnam faces challenges in meeting investor demand for a skilled workforce. To retain these major tech players, Vietnam will need to improve technical infrastructure, ensure macroeconomic stability, and create favorable incentive policies.Source: VnEconomy.vn

In 2023, Vietnam has emerged as a focal point for significant investments from global technology giants. This surge in interest is primarily driven by the country’s growing prominence in the semiconductor industry, which is vital for numerous high-tech applications worldwide. This article explores the factors contributing to Vietnam's rise as a key player in the tech sector, the specific investments being made, and the potential challenges faced by foreign direct investment (FDI) in the country. Vietnam's Rising Importance in Semiconductor Production The semiconductor industry is at the heart of modern technology, powering everything from smartphones to advanced computing systems. Vietnam is positioning itself as a major player in this industry, with substantial investments being made by leading technology companies. In 2023, the global interest in Vietnam's semiconductor sector has intensified. The country is poised to become a significant producer of essential semiconductor devices, which are crucial for various high-tech applications. This development aligns with the broader trend of increased FDI in Vietnam, reflecting confidence in the country’s capacity to become a key hub for semiconductor manufacturing. Key Investments by Global Tech Giants Several prominent technology companies are making substantial investments in Vietnam, signaling the country’s growing importance in the global tech landscape. Intel's Investment Intel, a leading semiconductor manufacturer, has committed $1.2 billion to establish a new semiconductor chip production facility in Ho Chi Minh City. This investment marks Intel’s third global manufacturing site, with existing facilities in Scotland and Israel. The Ho Chi Minh City plant is expected to play a crucial role in meeting the projected demand for semiconductor chips, with Intel aiming to supply 20% of the world’s semiconductor chips by 2030. Samsung and LG's Contributions In addition to Intel, other major technology companies are also investing heavily in Vietnam. Samsung has announced a $1.5 billion investment, while LG is contributing an additional $1 billion. These investments highlight the increasing importance of Vietnam as a strategic location for technology manufacturing. Japanese Investment in Manufacturing Furthermore, a Japanese company has received a license from the Industrial Zone Management Board in Hanoi to produce components for Boeing, ship components, and Shinkansen parts. This investment not only underscores the diverse range of manufacturing activities in Vietnam but also indicates the country’s potential to support advanced manufacturing sectors. The Role of FDI in Vietnam’s Tech Industry The influx of FDI into Vietnam is a testament to the country’s growing appeal as a manufacturing hub. Prof. Nguyen Mai, Chairman of Vietnam’s Association of Foreign Investment Enterprises, has highlighted the positive trends in FDI, particularly noting the high-quality investments from leading global technology firms. This optimism is expected to continue into 2023, with Vietnam increasingly being recognized as a key player in the tech industry. Challenges and Considerations Despite the positive developments, there are challenges associated with foreign investments in Vietnam. One significant concern is transfer pricing, a practice where companies manipulate the prices of goods and services between their subsidiaries to shift profits and reduce tax liabilities. Recent data from the Ministry of Finance revealed that 55% of FDI enterprises reported losses in 2021, an increase from the previous year. This rise in reported losses has raised concerns about the potential impact of transfer pricing on the country’s economic stability. Moreover, external factors such as the COVID-19 pandemic and global political conflicts have posed challenges for businesses operating in Vietnam. These factors have contributed to a complex environment for foreign investors, requiring a nuanced analysis to differentiate between businesses facing genuine operational difficulties and those potentially engaging in financial practices like transfer pricing. Conclusion Vietnam’s rise as a hub for semiconductor production and technology manufacturing is a significant development in the global tech industry. The substantial investments by major technology companies, including Intel, Samsung, and LG, underscore the country’s growing importance in the tech sector. However, challenges such as transfer pricing and the impact of global uncertainties must be carefully managed to ensure sustained growth and stability in Vietnam’s investment landscape. As Vietnam continues to attract global investment and develop its tech infrastructure, it is poised to play an increasingly prominent role in the global semiconductor market. For business owners and investors, understanding these dynamics and navigating the associated challenges will be crucial in leveraging the opportunities presented by Vietnam’s burgeoning tech sector.

The head of the government suggested that Japan support Vietnam in advancing its digital transformation, green transition, and innovation; grow its high-tech and semiconductor industries; and support its biotechnology, pharmaceutical, and medical equipment sectors to support public health care.Tech Giants Converge in Hanoi for Strategic Talks Amid Biden's Vietnam VisitVietnam's Semiconductor Industry: A Global PlayerAccording to the Northeast nation's Minister of Economy, Trade, and Industry, Japan wants to work with Vietnam to survey, exploit, and process rare earth elements as well as to establish associated industries.During their Friday meeting in Hanoi, the two leaders of Japan and Vietnam discussed the suggestions. Japan's government departments would work with their Vietnamese counterparts through task forces to enhance collaboration, transfer of technology, and training of human resources.Vietnamese Prime Minister applauded the idea of task forces to expedite collaboration on certain projects and said that the Vietnamese government will establish advantageous circumstances to attract Japanese investment.In May, there were three projects totaling JPY61 billion (US$500 million) in official development assistance signed by Vietnam and Japan.Japan is the largest donor of Official Development Assistance to Vietnam, having given the nation loans totaling over $21.6 billion, non-refundable aid, and technical support since 1992.Source: Vietnam Government Portal