Speakers at the Vietnam - US Trade Forum 2023 in HCM City on Tuesday. — VNA/VNS Photo

HCM CITY — Intel has confirmed they will be moving forward with their plans to expand investment in Việt Nam.

The move aims to enhance Intel's existing $1.5 billion factory in the Southeast Asian electronics manufacturing hub.

Speaking at the Vietnam-US Trade Forum on Tuesday, Ace Wilson, the chief financial officer of Intel Vietnam, said Việt Nam continues to be a critical part of its global manufacturing operations as demand for semiconductors grows.

The company aims to diversify its factory strategy across multiple countries, and it has set a target of $10-11 billion in export turnover for the current year, he said.

About 70 per cent of chip production that supports the region is expected to come from the Vietnamese factory, he added.

In June, Intel decided to invest in a production plant in Germany with a total investment capital of about $33 billion as part of its efforts to expand semiconductor production in Europe.

Daniel Nguyen, vice chairman of the Economic Development and Small Business Committee and Member of the Semiconductor Committee of the Oregon House of Representatives, said Việt Nam has great potential for semiconductor industry development.

The US has allocated $240 million to support the semiconductor industry, with a particular focus on aiding US businesses investing in this field in Việt Nam, he added.

In response to rumours about Intel shelving its planned investment in Việt Nam, a representative of the company clarified that there was misinformation from the media.

“Intel is still committed to further expanding its investment in Việt Nam,” the representative said.

Việt Nam is home to Intel’s largest factory worldwide for assembling, packaging, and testing chips.

The Southeast Asian nation has been banking on Intel to further expand its investment in the country, especially after the US President announced deals to support its chips industry during a visit in September.

Important partner

Speaking at the forum, Deputy Minister of Industry and Trade Đỗ Thắng Hải highlighted Việt Nam’s consistent policy of regarding the US as one of the most important partners of Việt Nam.

“Việt Nam is positioning itself well to become a major manufacturing hub in the world,” Hải said.

Barbara Weisel, an expert in international trade law and former assistant to the US Trade Representative, said in recent years, the Vietnamese market has been growing strongly and stably.

Its young, educated, and entrepreneurial workforce and its network of free trade agreements have turned the country into a leading beneficiary from the interest of many countries and companies in supply chain diversification to guarantee better resilience and economic security, she said.

Thanks to the shift of supply chains and other factors, Việt Nam has recorded the biggest market share expansion in the US compared to others.

The US has become the largest import market of Việt Nam, accounting for nearly one-third of the latter’s exports.

US businesses from many sectors are heading towards the dynamic Southeast Asian market while an increasing number of Vietnamese firms, including electric vehicle producers, have also seen investment opportunities in the US, according to Weisel.

Experts recommended the two countries actively work together to build concrete and detailed action plans to enhance the resilience and competitiveness of the fields that both prioritise.

They also need to act quickly to generate economic benefits as global businesses are paying attention to new investments in the region and seeking to diversify supply chains. — VNS