Vietnam’s Skilled Labor Shortage Threatens Chip Industry Growth

A chronic shortage of engineers in Vietnam poses a significant challenge to the country’s semiconductor industry, and the US plans to establish Vietnam as a chip hub to mitigate supply risks from China. As US President Joe Biden prepares to visit Vietnam, semiconductors are expected to be a key focus, with the US offering support to boost Vietnam’s chip production. However, industry experts warn that the shortage of trained hardware and software engineers could hinder the rapid development of the chip industry.

Vietnam currently has only 5,000 to 6,000 trained hardware engineers, far below the expected demand of 20,000 in five years and 50,000 in a decade. This shortage in skilled labor could make Vietnam vulnerable to competitors such as Malaysia and India. The US may also be interested in boosting Vietnam’s supply of raw materials, such as rare earths, as it aims to reduce its reliance on China. Addressing the skilled labor shortage will be crucial for Vietnam’s semiconductor ambitions.