Speaking to the Viet Nam News Agency, Sudhanshu Mittal, Director of Engineering Solutions at the National Association of Software and Service Companies (Nasscom) of India, noted that during the visit, the two countries signed a number of cooperation agreements, with semiconductors identified as a priority area alongside artificial intelligence (AI), cybersecurity, and advanced technologies.
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(Photo for illustration: Reuters) |
According to Mittal, Viet Nam and India possess complementary rather than competing strengths. While India accounts for around 20% of the world's semiconductor design engineers, Viet Nam is emerging as a major hub for electronics manufacturing and export-oriented assembly. If effectively combined, the two countries could establish a regional value chain, with India leveraging its strengths in design, research and technology, and Viet Nam taking on manufacturing, assembly and testing.
He also said the connection between India's Unified Payments Interface (UPI) and the National Payment Corporation of Viet Nam (NAPAS) demonstrates the potential for expanding cooperation into digital technologies, technical standards, and research and development (R&D).
One of the areas offering significant potential for bilateral cooperation is rare earths and critical minerals. Mittal said Viet Nam has an estimated 22 million tons of rare earth reserves, the world's second-largest, while India has around 6.9 million tons, ranking third. However, resource advantages will be difficult to translate into industrial strength without technologies for extraction, separation, and refining.
He called the Memorandum of Understanding between IREL (formerly Indian Rare Earths Limited) and the Viet Nam Atomic Energy Institute (Vintatom) a key strategic move, bringing together India’s expertise in rare earth processing with Viet Nam’s rich resources. This partnership matters not just for mining but also for the semiconductor industry, since rare earths and materials like gallium are crucial for making rare earth magnets, compound semiconductors, and power electronics.
Turning to lessons Viet Nam could draw from India's experience, the expert said the country should identify the right segments for development rather than seek to participate in the entire semiconductor value chain. Viet Nam should clearly identify areas where it has an advantage, such as final assembly, chip testing, or the development of specialized materials.
The second lesson is human resources development. Both Viet Nam and India need to invest early in specialized training programs to anticipate the industry's growing demand. At the same time, the two countries could work together to develop supply chains for essential inputs, ranging from specialized gases and ultra-pure materials to rare earths and technological equipment.
Mittal also stressed that the MOU can only deliver its full value when translated into concrete projects. As global technology groups accelerate the restructuring of their supply chains, Viet Nam and India should seize the current “window of opportunity” to speed up the implementation of joint projects.
For Viet Nam, with semiconductors identified as a strategic industry, India's experience could provide a useful reference as the country develops its semiconductor ecosystem and seeks deeper integration into global value chains, he noted.
Source: VNA