Manufacturing circuit boards at Vietnam Posts and Telecommunication Industry Technology Joint Stock Company at the Hoa Lac Hi-Tech Park. (Photo: en.nhandan.vn)However, about 95% of the export value of this industry stillbelongs to foreign-invested enterprises. Therefore, regulatory agencies need toresearch and issue breakthrough policies for the electronics industry todevelop more sustainably and strongly.
In the 2016-2020 period, exports of electronics, computers andcomponents in this period, grew by an average of 23.8% per year, according tothe General Statistics Office, bringing Vietnam from the 47th position in theworld in 2001 to the 12th position, and third in the ASEAN region in terms ofelectronics exports.
In 2022, the electronics industry earned an export revenue of114.4 billion USD, an increase of about 6% compared to 2021 and accounting formore than 30% of the total export revenue of the country.
The outstanding development of the electronics industry ismainly due to the attraction of large investments from multinationalcorporations, the Republic of Korea and Japan in the field of manufacturingelectronic components.
But the consequence is that the industry is also heavilydependent on foreign investors when up to 95% of export revenue belongs to FDIenterprises. The capacity of domestic enterprises remains limited, and thedomestic electrical-electronics market is dominated by foreign brands.
Besides, the localisation rate of the electronics industry isstill low. Most electronic products on the Vietnamese market are importedcomplete units or assembled domestically with foreign components. Although domesticsupporting enterprises have participated in the value chain of the industry,they can only provide simple products with low technological value. Vietnam'selectronics industry is still at the assembly stage in the electronicproduction chain.
Explaining the cause of this situation, Deputy Director of theIndustry Department Pham Tuan Anh said that electronic products often have arelatively short lifespan, with features and designs quickly changed, while domesticenterprises have limited capacity and lack resources to invest in the researchand development of products as well as brands.
Therefore, production stages with high value-added content stilldepend on foreign production chains. On the other hand, due to the lowproduction capacity of domestic enterprises, product quality has not yet metthe high requirements of FDI enterprises, leading to a lack of linkages betweensuppliers and multinational corporations.
After the COVID-19 pandemic and a series of socio-economic upheavalsin the world and the region, Vietnam's electronics industry is facing anopportunity to welcome a new wave of investment and to restructure the valuechain in the near future.
Many large corporations in the world such as Apple, Pegatron orIntel have expressed interest and plans to invest in or expand the productionof electronic products in Vietnam, including some products with high technologycontent. Samsung is looling for more domestic suppliers to increase the linkagein the value chain of the group in Vietnam.
However, to tackle the challenges facing the electronicsindustry, the State needs to promptly adjust its FDI attraction policy toeffectively take advantage of the wave of production shifting to Vietnam.Support policies are also needed to help support enterprises improve theircompetitiveness and promote digitalisation.
Deputy Director Pham Tuan Anh said that in the coming time, itis necessary to develop a long-term support strategy to help transform theindustry from simple assembly to manufacturing high-value-added products.First, it is necessary to promote the development of products such as displays,semiconductors and key electronic components.
Electronic businesses themselves should pay more attention toidentifying core and breakthrough products, as well as focus their resources onproducts with good competitiveness./.
VNA
