Golden opportunities for the electronics industry in Vietnam

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

Electronics manufacturing hub of Asia

At the recent introduction meeting of the Industrial Transformation Asia-Pacific 2023 (ITAP), Portfolio Director (Industrial Transformation) at Constellar, Darren Seah underscored Vietnam’s positioning as the electronics manufacturing center not only in Southeast Asia, but also across the entire Asia region.

Darren Seah emphasized that Vietnam is attracting significant investment from major technology corporations, leading to the establishment of an extensive industrial network that supports the electronics sector. This substantial involvement in the global supply chain has solidified Vietnam’s position in the industry.

To solidify its standing as an electronics manufacturing hub in Asia, Darren Seah stressed it is important for Vietnamese businesses to prioritize product quality, strengthen connectivity, and seek strategic partnerships with countries like Malaysia and Thailand to ensure seamless export operations.

Do Thi Thuy Huong, a member of the Vietnam Electronics Industries Association (VEIA), acknowledged the growing significance of the global supply chain over the past few years, largely influenced by the COVID-19 pandemic. She highlighted that several prominent electronics companies are relocating their operations from China to Vietnam in search of reliable suppliers. Notably, Apple has already established a component manufacturing plant in Vietnam and expanded its product range to include high-end devices such as tablets and desktop computers, alongside headphones. Furthermore, some key chip manufacturers within Apple’s supply chain are considering the establishment of production facilities in Vietnam.

While this presents a considerable opportunity for Vietnamese enterprises, Huong emphasized substantial efforts are still required to fully integrate into Apple’s advanced and modern global supply chain.

Forming potential domestic business network

It is evident that despite Vietnam’s position as the 12th largest exporter of electronics globally and the third largest within the ASEAN (Association of Southeast Asian Nations) bloc, a substantial portion of the value, approximately 95 percent, is contributed by foreign direct investment (FDI) enterprises. Hence, a paradigm shift is imperative to foster the development of the electronics industry.

At an interview with a correspondent from the Vietnam Economic News, Pham Tuan Anh, Deputy Director of the Industry Agency under the Ministry of Industry and Trade, emphasized the active engagement of the agency in making international collaborative endeavors within the industrial sector, particularly in electronics and supporting industries. Notably, collaborations with the Republic of Korea (RoK) have led to the establishment of the Vietnam-Korea Technological Consultancy and Solution Center (VITASK), a training program in partnership with Samsung aimed at cultivating expertise in the supporting industry domain, as well as an initiative providing technical consultation and support to enhance production capabilities and competitiveness of Vietnamese enterprises in the supporting industry, facilitating the manufacturing of finished products and fostering their seamless integration into global supply chains.

To proactively and sustainably develop the electronics industry, it is paramount to concentrate efforts on supporting promising Vietnamese enterprises operating in the sector, thereby fostering opportunities for their growth and positioning them as frontrunners in the domestic electronics market.

Moreover, a comprehensive review and enhancement of policies and regulations, with a particular emphasis on specific provisions regarding the origin of Vietnamese goods, are essential. Simultaneously, measures must be implemented to broaden the scope of the domestic and export markets, ensuring a conducive environment for further expansion.

Nguồn: Viet Anh (Báo Công Thương)
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