Vietnam, Asia’s next tiger, provides an environment conducive to achieving V-CAPS’ goal of offering a low cost, low risk, “green” solution. Driven by the ready availability of educated, highly skilled and low cost local engineering talent, lower direct labor costs, lower construction costs, lower manufacturing costs, solid logistics, and strong government support, Vietnam is particularly attractive for establishing the lowest cost, most efficient, outsourced global packaging and test operation and for providing a viable diversification alternative to China, Taiwan, and less stable Asian countries.

Vietnam’s famous Ha Long Bay

Vietnam has a population of over 80 million people, with more than seventy percent under the age of 30. The literacy rate is over 95% and the average monthly wage of unskilled workers is considerably lower than China. It is regarded as one of the safest investment locations amongst APAC countries and, according to PERC, Vietnam, particularly Hanoi, is amongst the safest tourist spots in Asia. There are currently thirty-one foreign banks in Vietnam. Investment funds such as Vina Capital, Indochina Capital, and Dragon Capital, have all emerged as significant players in the Vietnam market.

Vietnam’s recent ascension to the WTO and its bilateral trade agreement with the United States, along with very favorable investment incentives and ready access to government decision makers, have created an ideal environment for both established and entrepreneurial investors.

Although Vietnam has no semiconductor infrastructure to speak of, they have an excellent university system with a significant focus on technology and engineering.