Prime Minister Nguyen Tan Dung has endorsed the master plan for the development of the electronics industry, targeting revenues of 4-6 billion USD by 2010, with 3-5 billion USD of than from exports.

The industry, which projects an annual growth rate of 20-30 percent beginning in 2010, will create 300,000 jobs nationwide, according to the Vietnam Electronics Industry Association (VEIA).

In a bid to reach these targets, Vietnam will begin turning out more lucrative electronic items, including both finished products and components and spare parts used in informatics, telecommunications, medical and industrial equipment, measurement and automation.

Meanwhile, the house-hold electronics sector will enhance its competitive edge by raising product quality while cutting production costs to reduce sale prices, VEIA says.

The electronics sector is set to earn 3 billion USD in export turnover this year, a 22.7 percent increase over last year’s 2.2 billion USD, with 95 percent of products produced by foreign-invested enterprises.

Though domestic electronic items in the past have not been considered major exports, higher demand for these products will help the industry hit its turnover target, VEIA says.

Furthermore, Vietnam has drawn many large-scale projects since becoming a member of the Word Trade Organisation, including investment from companies such as Intel, Foxxcon and Nidec, which will contribute to export turnover in the coming years.

Many of the companies, which produce electronic items under outsourcing contracts with foreign firms, are trying to raise the added value in their products by designing their own models and intensifying the production of components and spare part for export, the association says.

Compared to ASEAN countries like Singapore , Malaysia and Thailand , whose electronics export turnovers for 2007 were 50 billion USD, 43 billion USD and 41 billion USD respectively, Vietnam ’s turnover last year was modest.

Source: VNA, photo: Bao Thuong mai