Đỗ Thanh Trúc

Activity 2
Homework: Chip making-further info gathering and synthesis

7. By Using Appropriate "International Trade Theory / theories , can you continue to

evaluate the chances of vietnam's success in this case ? Explain and answer briefly in

5-8 sentences.

Vietnam's semiconductor chip industry approachs both the multidomestic and global trade theories. The
country's been smartly exporting chips to the US and other nations, using a multidomestic strategy to
cater to specific markets and create customized products that give them a competitive edge. Plus,
Vietnam's got a big ambitions to be a key player in the global chip market, which totally supports the
global trade theory. I mean, they've already working with major big company like Intel or Samsung and
expanded their chip exports to different destinations. That shows their strong commitment to this industry.

8. Find some facts/ issues in other sources to exemplify the need of "geopolitical

relations'' in this industry . Answer briefly in 5-8 sentences.

Geopolitical relations play a pivotal role in the semiconductor industry, as highlighted in various
sources. For instance, the trade tensions between the United States and China have
significantly disrupted global supply chains and affected semiconductor sales, leading to a ripple
effect on the global market. Additionally, the COVID-19 pandemic exposed vulnerabilities in
supply chains, emphasizing the importance of diversification and resilience. National security
concerns have prompted calls for domestic chip production and stricter security measures to
safeguard critical technologies. Intellectual property theft poses a substantial risk to companies
operating in the industry, and how countries handle their relations can influence the enforcement
of intellectual property laws and protection mechanisms. Technological leadership is fiercely
competitive, leading to countries forming alliances to bolster their semiconductor industries.
Moreover, market access is a crucial factor influenced by trade agreements, tariffs, and
regulatory barriers, underscoring the significance of strong diplomatic relations to facilitate
expansion and global trade.
9. Vietnam's Ambition to Become the World's Chip Manufacturing Center:
Opportunities and Challenges

Opportunities for Vietnam in the Chip Industry:

● Collaborating with Multinational Companies: Vietnam has been proactive in forging
partnerships with industry giants such as Intel and Samsung, facilitating knowledge
exchange, technological progress, and better market reach.
● Semiconductor Exports Increase: Vietnam has witnessed a surge in chip exports,
attracting noteworthy foreign investments and propelling further growth.
● Strategic Geopolitical Location: Vietnam's advantageous position in Southeast Asia
offers access to global markets and efficient supply chain connections, making it an
appealing destination for chip manufacturers seeking production diversification.
Challenges :

● Worker: Developing and retaining a proficient workforce capable of handling advanced

machinery and driving chip design and fabrication is essential.
● Technology: Upholding competitiveness necessitates substantial investment in
research and development to keep up with global advancements.
● Infrastructure: Enhancing infrastructure, power supply, transportation networks, and
establishing a robust supply chain for raw materials are critical to supporting industry
growth.
● Intellectual Property: As Vietnam's semiconductor industry expands, the risk of
intellectual property theft heightens. Implementing stringent measures for intellectual
property protection is crucial to instill investor confidence and promote innovation.