Vietnam’s Semiconductor Industry in the Global Supply Chain: Policy Frameworks, Investment Strategies, and Technology Diplomacy

This paper examines Vietnam’s emerging role in the global semiconductor supply chain, highlighting how policy frameworks, foreign direct investment (FDI) strategies, and technology diplomacy interact to shape the country’s industrial trajectory. Drawing on policy documents, trade data, and investment trends, the study assesses Vietnam’s efforts to attract high-quality FDI, strengthen domestic technological capabilities, and integrate into global production networks. The analysis underscores the government’s pursuit of a balanced approach, which links industrial upgrading and sustainability with national security and global cooperation. It argues that Vietnam’s semiconductor strategy exemplifies a form of ‘technology diplomacy’, through which the state leverages economic openness and strategic partnerships to advance its digital transformation agenda and enhance sustainable competitiveness. The findings contribute to broader discussions on how developing economies can position themselves within high-technology sectors under the evolving global trade and investment order.