Electronics is one of the key industries which are enjoying impressive growth in recent years and has become a spearhead export sector of Vietnam.
In the last decade, the number of electronic enterprises has risen four-fold to 1,021, and the number of workers increased to more than 500,000, Nguyen Phuong Dong, Deputy Director of the municipal Department of Industry and Trade, said at the seminar themed “Enhancing linkage opportunities in the electronic supply chain”.
However, the sector is still in the first phase of the electronic production chain, as domestic firms have focused only on assembling and after-sales services, Dong said.
Truong Thi Chi Binh, Vice Chairwoman and Secretary General of the Vietnam Association of Supporting Industries (VASI), said that Vietnamese electronic enterprises have yet to contribute properly to the country’s electronic product export value.
She pointed to the fact that the country’s supporting industry has yet to keep up with production demand, resulting in a low supply of domestically-produced components.
According to Binh, at present 77 percent of components are imported. Notably, up to 98.2 percent of basic electronic and electric components are bought from abroad.
To participate in the global supply chain, Vietnamese electronic enterprises must first meet safety demands and technical requirements and limit hazardous content in their products, she said.
VASI can actively support enterprises by providing consultancy, training, information, and databases and connecting them with international markets, Binh added.
Bui Thi Ninh, from the Vietnam Chamber of Commerce and Industry (VCCI)’s Branch in HCM City, stated the electronic industry has a very high growth rate and short life cycle for products, requires large investments, yields high profits but comes with fierce competition and high risks.
To facilitate the linkages between electronic firms, the VCCI put forward an initiative to establish an alliance of electronic firms to help them strengthen cooperation and solve challenges facing the sector, thus helping improve their brand names and competitiveness and minimise business risks.
Source: VNA