Vietnam may become one of Asia’s top electronics manufacturing hubs thanks to nvestments in the country by electronics giants such as Samsung, Apple, LG, and Intel.
Vietnam could position itself as an electronics production center for Southeast Asia and Asia as a whole, said Darren Seah, portfolio director at Constellar Exhibitions, while speaking at a briefing held in Hanoi on Wednesday to introduce the 2023 Industrial Transformation Asia-Pacific (ITAP) event, slated for this October in Singapore.
Seah explained that many large tech firms have been establishing networks of supporting industry enterprises in Vietnam, allowing the latter's further penetration into global supply chains.
For its part, Vietnam must focus on controlling product quality and intensifying its connection with such tech firms in order to improve competitiveness, Seah added.
He also pointed out that Vietnamese electronics manufacturers need to align with current global green production and sustainable development trends by investing in technology that allows for the reduction of carbon dioxide emissions.
Many large electronics firms are shifting their supply chains from China to Vietnam, said Do Thi Thuy Huong, an executive board member of the Vietnam Electronic Industries Association.
“This is an opportunity and the start of a long journey for businesses to take part in advanced global supply chains,” Huong said.
She noted that local policies and human resources are not aligned with the development of the electronics industry, especially when it comes to receiving technology.
The electronics industry of Vietnam has leaned heavily toward mobile phone production, which accounts for up to 70 percent of electronics production in Vietnam.
The mobile phone production industry in Vietnam reported an import-export turnover of US$114 billion last year, making up 30 percent of the country’s total import-export revenue and raking first in the manufacturing sector.
However, mobile phone accessories are mainly exported by foreign direct investment enterprises.
The import of phone parts is also an imbalance as 88 percent of the products are bought from China.
Meanwhile, most Vietnamese electronics enterprises are mainly medium- and small-sized and currently face falling profit margins and slow economic recoveries amid changes in consumption habits.