Electronics export witnesses vigorous recovery
Electronics export has witnessed vigorous recovery, posting double-digit growth over seven and a half months and expected to hit 130 - 132 billion USD in 2024.
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| Workers of Samsung Electronics Vietnam Co., Ltd., Yen Phong industrial park, Bac Ninh province, check products during their work shift. (Source: VNA) |
As of August 15, Vietnam recorded 244.41 billion USD in total overseas shipments, rising 16% year on year. The revenue includes 77.4 billion USD from electronics exports, up 20%, helping this industry maintain its status as a leading foreign currency earner.
In particular, computers, computer devices, electronic products, and components brought home 42.59 billion USD while phones and components 33.8 billion USD, respectively increasing 30% and 11% from a year earlier, statistics show.
Do Thi Thuy Duong, member of the executive committee of the Vietnam Electronic Industries Association, said electronics export became stagnant last year with a turnover of about 110 billion USD due to impacts of global economic recession and the shortage of orders, but the situation has improved in 2024.
As electronic products and components make up an increasing proportion of total exports, their performance considerably affects overall export growth. During 2011 -2023, they posted an average growth rate of 23.8%.
This result is attributed to foreign invested businesses. Up to 99% of the industry’s total exports come from those firms, including large investors like Samsung, LG, Intel, and Apple.
Big investments from electronic giants have helped rapidly expand Vietnam’s smartphone market share globally to 13%, the second largest after China.
In its Investment Outlook for the second half of 2024, HSBC forecast Vietnam’s economic growth will remain on the recovery track in H2, driven by the global electronics cycle.
Signs of manufacturing and export recovery are being sustained as seen in the spending of foreign currencies on importing machinery, equipment, and some key commodities to serve export.
Electronics imports reached 64.15 billion USD as of August 15, rising nearly 29% year on year, according to the General Department of Vietnam Customs.
The country’s manufacturing industries have bounced back since the mid-year thanks to a surge in new orders.
The increased import of computers, electronic devices, and components is an indicator of abundant export orders, the Ministry of Industry and Trade explained.
If monthly exports are kept at 11.5 billion USD, overseas shipments of electronics are believed to yield 51.8 - 52.5 billion USD during the remaining months to raise this year’s figure to 130 billion USD and even higher.
(Source: VNA)
