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Electronics Industry: Seizing Opportunities for Breakthroughs

23/01/2024

The electronics industry holds a pivotal position in the economy, exerting a strong ripple effect on other industries.

Vietnam Has the Potential to Become a New Manufacturing Hub

With a series of major electronics corporations investing in Vietnam, such as Samsung, Apple, LG, Intel, the Vietnamese electronics industry has the potential to become the manufacturing hub of Asia.

The Ministry of Industry and Trade is continuing to refine mechanisms and support policies to consistently accompany industrial enterprises in general and the electronics industry in particular. The goal is to enhance capabilities and deeply engage in the global supply chain.

According to the Ministry of Industry and Trade, numerous world-renowned corporations have announced their participation in Vietnam, including Walmart, Amazon, Boeing, Carrefour, Central Group; Coppel (Mexico), IKEA (Sweden); Aeon, Uniqlo (Japan)… Apple has completed the relocation of 11 manufacturing plants for audio-visual devices to Vietnam, while Intel has expanded the second phase of its chip testing facility in Ho Chi Minh City with a total investment of USD 4 billion. Additionally, Denmark’s Lego Group has invested USD 1 billion in building a factory in Binh Duong.

The presence of these major manufacturing corporations indicates that Vietnam is becoming a global manufacturing hub. Foreign Direct Investment (FDI) enterprises, such as Intel, Samsung, LG, Qualcomm, have continuously announced expansions in their investments. Notably, Samsung officially inaugurated its Research and Development (R&D) Center in Hanoi at the end of 2023 – the largest R&D center in Southeast Asia under Samsung’s plan to elevate Vietnam’s position beyond a global production base. Samsung has shifted its entire phone production line to Vietnam and India, with approximately 60% of its global smartphone output manufactured in Vietnam.

Do Thi Thuy Huong, a member of the Vietnam Electronics Industries Association (VEIA), emphasizes that this is an opportunity for Vietnamese businesses, and they must seize it.

Despite being considered a leading industry and achieving some success in attracting foreign direct investment, playing a significant role in exports, the Vietnamese electronics, computer, and component group still largely depends on foreign-invested enterprises. Moreover, the localization rate in the electronics sector remains low, with many products being either fully imported or assembled domestically using foreign components.

The Ministry of Industry and Trade is actively involved in international cooperation programs and projects in the industrial sector, particularly in electronics and supporting industries. Collaborative efforts, such as the Vietnam-Korea Technology Consultancy and Solutions Center (VITASK), have been established with South Korea.

Pham Tuan Anh, Deputy Director of the Industrial Department (Ministry of Industry and Trade), highlighted the effective collaboration with companies like Samsung and Toyota in implementing various practical programs to enhance the capabilities of support industries in Vietnam. These programs include training consultants in the support industry and providing technical support to improve production at Vietnamese enterprises, ultimately enhancing their competitiveness and participation in global supply chains.

To proactively and sustainably develop the electronics industry, the focus should be on supporting promising Vietnamese companies in the electronics sector. The government needs to implement these measures promptly to prepare for increased competition against fully imported products, especially as consumers gain access to lower-priced foreign products. Vietnamese enterprises must also enhance their competitiveness and technological capabilities to participate in global value chains genuinely and contribute to making Vietnam a major electronic equipment manufacturer by 2030.

Source: congthuong.vn

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