Electronics manufacturing makes up nearly 18% of Vietnam’s industry

The electronics sector accounts for 17.8 per cent of Vietnam’s industry, placing the nation among the world’s top 15 largest exporters of this kind of product.
Electronics manufacturing makes up nearly 18% of Vietnam’s industry | Business | Vietnam+ (VietnamPlus)
Production activities at the Daikin Vietnam factory in Thang Long II Industrial Park in Hung Yen province. (Photo: qdnd.vn)

The sector primarily manufactures electronic products, computers, and optical products. According to a report from the Industry Agency under the Ministry of Industry and Trade (MoIT), last year it achieved an export turnover of over 114 billion USD, up 6 per cent year-on-year and accounting for over 30 per cent of the country's total.

Domestic and foreign investors are increasingly pouring capital into this sector, with many global conglomerates like Samsung, LG, Foxconn, and Fukang Technology establishing advanced technology electronic production facilities in Vietnam.

Highlighting the role of the industry, Do Thuy Huong, a member of the executive board of the Vietnam Electronic Industries Association (VEIA) and Vice President of the Vietnam Association for Supporting Industries (VASI), said it plays a significant role in contributing to the country's trade balance and foreign exchange reserves. The US and China are the two major markets for exports.

However, in reality, the group of electronic products, computers, and components in Vietnam still heavily relies on foreign direct investment (FDI) enterprises, with low localization and high labor-intensive rates.

To make way for the development of the industry, the MoIT has worked to improve its competitiveness and seek potential suppliers, thereby helping domestic firms form partnerships with multinational corporations and participate in the global value chain. Additionally, strategies serving the expansion of both domestic and export markets have been carried out.

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(Source: VNA)