Investing in Tech Talent to Embrace Growth Opportunities

Vietnam has significant advantages for driving innovation and developing strategic technology sectors: a young, talented workforce; a strong macroeconomic foundation; a strategic location within Asia’s growth corridor; and proven capacity for learning and adaptation. What is now required is a well-structured strategy, including breakthroughs in cultivating tech talent and promoting innovation.

Vietnam Robocon team at the ABU Asia-Pacific Robot Contest (ABU Robocon)

Investment exists but is not enough

According to the World Bank report “Forging Vietnam’s Semiconductor Future: A Tech Talent and Innovation Flywheel”, the world is entering a semiconductor supercycle driven by artificial intelligence (AI), with demand for chips powering everything from generative AI to electric vehicles growing at unprecedented rates. Global semiconductor revenue is projected to double over this decade, surpassing US$1 trillion by 2030. By the same year, this AI-driven supercycle could generate up to US$15 trillion in economic value and 100 million jobs across sectors, provided technological infrastructure can keep pace.

The World Bank assessed that Vietnam occupies a central position within the global semiconductor cluster. International experience shows that companies locate research and development (R&D) operations where high-level talent, advanced research, and ready infrastructure converge. East Asia’s five major economies namely China, South Korea, Japan, Singapore, and Taiwan, currently lead the world in both AI and semiconductor technology. These economies host the five largest global science and technology clusters, accounting for 35 of the top 100 clusters worldwide, with Malaysia contributing one cluster as of 2024. They have combined workforce development policies with long-term, substantial investment in mission-driven research and innovation, transforming from assembly and manufacturing hubs into knowledge- and technology-driven economies.

Vietnam’s tech workforce has shown notable progress in recent years. Enrollment in science and engineering programs has grown by about 9% annually. Leading Vietnamese higher education institutions are increasingly recognized regionally in science, technology, engineering, and mathematics (STEM) fields. Currently, the country has over 500,000 STEM-qualified professionals aged 22-35, with roughly 24,000 new entrants expected annually.

However, Vietnam’s talent pool remains insufficient to realize ambitions for a higher position in the semiconductor industry. For example, in Vietnam’s strength area of assembly and testing, only about 8% of workers in electronics manufacturing plants hold a university degree, while nearly 50% of current job openings in the sector require a bachelor’s degree or higher. Expanding post-fabrication chip design operations will demand tens of thousands of additional engineers beyond the current supply.

In terms of quality and depth, moving into pre-fabrication chip design requires system computer architects, chip designers, and other professionals with postgraduate qualifications. Such talent is extremely scarce in Vietnam; only about 4% of the current semiconductor workforce holds a master’s degree or higher, compared with approximately 30% in leading global centers. Advanced packaging operations face similar challenges, with increasing demand for expertise in materials science, chemistry, physics, and engineering reliability.

The reality is that Vietnam has limited time to invest in talent. The global semiconductor talent shortage, expected to reach tens or even hundreds of thousands of positions in leading economies by 2030, demonstrates that building factories or offering tax incentives alone will not be sufficient to sustain a strong ecosystem.

Igniting tech talent to drive innovation

To rapidly scale a high-quality workforce, the World Bank report proposed four interconnected pillars for Vietnam: igniting talent, which involves expanding and enhancing the quality of the skilled workforce while nurturing leading-edge tech talent; shared R&D and training infrastructure, enabling students and higher education institutions to access industry-standard tools, facilities, and infrastructure; promoting innovation between universities and businesses, transforming research into designs, products, and solutions with commercialization potential; and results-oriented governance and finance, ensuring clear accountability mechanisms and sustainable funding.

According to the World Bank, investing in tech talent can benefit the entire economy - not only creating tens of thousands of high-quality jobs but also accelerating development across other high-tech sectors. By 2035, Vietnam aims to be recognized as a global semiconductor talent hub, with a sustainably developed workforce, a strong domestic chip design industry, and sufficient credibility to attract the next wave of investment.

“The window to achieve these goals is gradually closing, but timely action is still possible. Regional countries such as Malaysia, Singapore, and China have rapidly increased investments in advanced semiconductor fields. Vietnam must urgently address its talent shortage to maintain competitiveness,” the report emphasized.

No country has ever suffered from having “too much” high-quality talent, but many have missed opportunities due to having “too little.” Decisive action now will determine whether Vietnam helps shape or merely observes the future of the high-tech industry in the region.

By Anh Mai, Vietnam Business Forum