While the US-China technology rivalry and the resultant G2 framework have prompted the semiconductor industry to diversify production risks, Vietnam is emerging as an attractive location for global semiconductor players to serve the purpose, ranking closely behind Singapore and Malaysia among ASEAN countries. Nevertheless, there exist challenges that must be overcome to fully realize its potential.

Cheap electric vehicles from China are already pushing into Europe, undercutting one of the region’s biggest industries. BYD Co., which overtook Tesla Inc. last year to become the biggest global EV maker, is about to raise the stakes.
The Chinese manufacturer last month announced plans to introduce its Seagull hatchback in Europe next year, which offers premium features like cruise control and wireless phone charging but sells for less than $10,000 in China. Even after tariffs and modifications to meet European standards, BYD executives have pledged to sell the Seagull for less than €20,000 ($21,500) on the continent.

In 2024, the consumer electronics market is gradually recovering. However, there are mixed signals in the end-user application market, with some reports suggesting bleak prospects for Apple due to the recent lack of innovative momentum.

With Generative AI and other High-Performance Computing (HPC) demands surging, the costs for AI hardware, infrastructure, and energy consumption are also on the rise. Many companies including OpenAI are finding it getting harder and harder to foot the hefty bill.