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The rapid development of the semiconductor industry is reshaping Southeast Asia’s economic trajectory, creating opportunities for Vietnam and the Philippines to move closer to the ranks of high-income economies, according to Nikkei Asia.

Vietnam’s semiconductor industry offers the country an opportunity to shift from a growth model heavily reliant on low-cost labour and manufacturing toward more technology-intensive, higher value-added sectors, the paper said.

In the World Bank’s income classification updated in July, Vietnam was placed in the upper-middle-income group. Nikkei Asia said that to further raise income levels, the country needs to gradually reduce its reliance on low-cost labour and develop high-tech industries capable of generating greater added value.

Vietnam has raised incomes through an export-driven growth model. Its network of free trade agreements with countries and regions worldwide has helped attract foreign investment and establish manufacturing hubs for electronic components and electrical equipment.

In June, LG Innotek from the Republic of Korea announced plans to build a semiconductor substrate manufacturing plant in Vietnam with an estimated investment of around US$1 billion.

Vietnam is also seeking to expand its participation in the semiconductor value chain, moving beyond downstream activities such as assembly, packaging and testing into more technology-intensive areas, including chip design and the fabrication of integrated circuits on semiconductor wafers.

Under the country’s semiconductor industry development strategy, Vietnam aims to train more than 50,000 engineers and graduates for the sector by 2030.​

Nikkei Asia said the development of the semiconductor and electronics industries could provide an additional impetus for Vietnam’s economic growth amid rising global demand for products supporting artificial intelligence (AI).

To capitalise on the opportunity, Vietnam needs to continue improving the quality of its workforce and strengthening research and development capacity, while enhancing its ability to participate in higher value-added stages of global supply chains.

Meanwhile, the Philippines is also seeking to expand its semiconductor industry, which remains concentrated mainly in assembly, packaging and testing. Semiconductors and electronic products currently account for more than half of the country’s total merchandise exports. The Philippines is likewise seeking to upgrade its semiconductor industry as global demand for AI-related chips continues to grow.

Dai Quang Minh Real Estate Investment JSC has proposed a 46.4-kilometer rail line linking downtown Ho Chi Minh City with Long Thanh International Airport, with an estimated cost of VND134.17 trillion ($5.14 billion) for the first phase, according to a feasibility study currently under review.

The Thu Thiem-Long Thanh railway project is among key infrastructure projects that HCMC plans to break ground on Vietnam’s National Day, or September 2.

The updated study puts the line's length at about 46.44 km, running from the eastern end of Thu Thiem station on the Ben Thanh-Thu Thiem route in HCMC to Cam Duong depot in neighboring Dong Nai city.

About 11 km of the line would run underground, while 34.5 km would be elevated, with the remainder at ground level or on transition sections.

The line would have 18 stations, excluding Thu Thiem station, including 16 elevated and two underground stations. The first phase would build 14 stations to improve investment efficiency.

Six stations would be located in HCMC and eight in Dong Nai, providing connections to residential areas, industrial zones, and Long Thanh airport.

Connecting with wider rail network

The route would follow major transport corridors, including expressways and Ring Road 3, while connecting with six other rail lines to create a mass-transit network serving Long Thanh airport.

It would link with the Ben Thanh-Thu Thiem metro at Thu Thiem station, Metro Line 6 at Ring Road 2 and Phu Huu stations, and Metro Line 10 at Long Truong station.

The project would also connect with the Vung Tau-Ba Ria-Phu My railway at Xom Goc station, as well as an extension of the Ben Thanh-Suoi Tien metro line and the North-South high-speed railway at a station inside Long Thanh airport.

The line is designed to handle nearly 47,000 passengers per hour, with an average capacity of more than 23,400 passengers per hour in each direction.

Trains would have a maximum design speed of 120 kilometers per hour and operate at between 80 km/h and 110 km/h depending on the section.

The project would use GoA4 automated operation, the highest level of automation under European standards, to align with the planned Tham Luong-Ben Thanh-Thu Thiem metro corridor.

BT model proposed

The first phase is expected to have a preliminary investment cost of VND134.17 trillion ($5.14 billion), excluding land clearance expenses. The estimate is lower than an earlier proposal.

The project is expected to be developed under a build-transfer (BT) contract, with the investor responsible for raising capital and receiving payment through a combination of land funds and state budget resources.

Construction is targeted for completion in 2030, creating a direct mass-transit connection between HCMC and Long Thanh International Airport.

HCMC has a long-term plan for more than 1,000 km of urban railway, but currently operates only about 20 km of the Ben Thanh-Suoi Tien metro line.

The city has also begun work on the Ben Thanh-Tham Luong, Ben Thanh-Thu Thiem and Ben Thanh-Can Gio routes.

By 2030, the city aims to expand its urban railway network to 255 km. Other projects under preparation include the New Binh Duong-Suoi Tien line, the first phase of Metro Line 6 from Tan Son Nhat airport to Phu Huu, Thu Dau Mot-Tao Dan, and the Tham Luong-An Ha-Tay Bac urban area section of Metro Line 2.

Taiwanese technology giant Foxconn plans to invest an additional $265 million in its manufacturing operations in Vietnam as part of its long-term investment strategy, bringing its total investment capital in Vietnam to nearly $5 billion.

Foxconn plans to invest an additional $265 million in its manufacturing operations in Vietnam as part of its long-term investment strategy, according to a recent filing by the Taiwanese technology giant with the Taiwan Stock Exchange (TWSE), as cited by TNGlobal.

The additional capital will be injected into Foxconn’s Vietnamese subsidiaries through the issuance of new shares.

The largest investment, worth $117 million, will go to Competition Team Technology (Vietnam) Co., Ltd., which manufactures televisions, components and other electronic products. Following the transaction, Hon Hai Precision Industry will hold a 61.55% stake in the company, while Foxconn Singapore Pte Ltd will own the remaining 38.45%.

Another $114 million will be invested in Foxconn EV Energy & Component (Vietnam) Co., Ltd., which manufactures components and energy-related products for electric vehicles. Hon Hai will directly hold a 23.53% stake, while Foxconn Singapore will own 76.47%.

The third capital increase, worth around $33 million, will be made at FuKang Technology Co., Ltd., a Foxconn manufacturing facility in Vietnam. The company specializes in producing tablets for Apple and other electronic products.

In a filing dated August 18, Foxconn said Foxconn Singapore had acquired additional shares in FuKang Technology worth $358.4 million between October 2025 and August 2026, raising its ownership to 100%. Its total investment in the company has reached $710.4 million.

With the newly announced investments, Foxconn’s total investment in Vietnam is expected to approach $5 billion.