Viettel to produce chips amidst global shortage

Leaders of the military-owned Viettel Group made the proposal at a Tuesday meeting with Prime Minister Pham Minh Chinh.

The proposal was made in the context of the recent global chip shortage, which has seriously affected many manufacturing sectors and business areas, prompting several countries to promote chip production as a national security measure.

In this context, the group also asked to be assigned the tasks of ensuring national defense and security, promoting its strengths and demonstrating the pioneering role of state-owned companies in the fields of high-tech defense, construction and cyber security and safety.

Viettel said it wanted to deploy a national digital conversion platform, and work as an intermediary for financial switching services and electronic clearing services to facilitate transfer of funds from one bank account to another.

The group also wanted permission to research green energy technology and modernize important infrastructure in the field of transportation, logistics, urban areas, and science and technology.

It also asked for more leeway in deciding investment capital and salaries, as well as organizing its internal units.

At the same time, it suggested that the government adds a new legal corridor for state-owned firms, such as a mechanism to make evaluations based on the principle of overall investment efficiency instead of relying on individual investment items and projects, and a mechanism to establish a Venture Capital Fund for investment in innovative start-ups.

PM Chinh said Viettel should research and produce chips to effectively and efficiently serve the country’s digital transformation process, including building a digital government, digital economy and digital society. He said Viettel must be a corporation that plays a leading role in this process.

He also agreed that the group works as an intermediary for financial switching and electronic clearing services, and assigned related ministers to study the plan and report on it to the government.

Viettel has been maintaining an average pre-tax profit of over VND40 trillion ($1.7 billion) each year for several years.

The group is doing business in ten markets with a total population size of 260 million in three continents, and has so far reported profits in seven markets, at $250-350 million per year.