In the first four months of 2024, Vietnam’s exports of computers, electronics, and components reached USD 21.4 billion, up 33.9% year-on-year (YoY), accounting for 17.2% of the country’s total export turnover. Exports of phones and components reached USD 18.1 billion, a 5% YoY increase, representing 14.6% of the total. Combined, these two categories reached USD 39.5 billion, accounting for 32% of total export value.

According to the General Statistics Office, the electronics industry is a key manufacturing sector in the economy and has strong spillover effects on other industries. In Vietnam, the sector mainly produces items such as various types of phones, tablets, motherboards, screens, TVs, cameras, office equipment, and optical products. Electronics account for 17.8% of total industrial output, placing Vietnam among the world’s top 15 electronics exporters.

Foreign and domestic investments in this sector in Vietnam continue to increase. Many global electronics giants have invested in high-tech electronic product manufacturing facilities in Vietnam, such as Samsung, LG, Foxconn, Fukang Technology, and LG Display Hai Phong.

Looking back over the past 10 years, electronics exports have grown rapidly and sustainably. In 2013, computers, electronics, and components accounted for 8% of Vietnam’s exports, rising to 16% by 2023.

From 2013 to 2023, Vietnam’s electronics exports saw no decline in value in any year (ranging from +3% to +38% YoY), with total export turnover rising from USD 10 billion in 2013 to USD 57 billion in 2023.

Computers, electronics, and components have surpassed traditional key export items in importance. Since 2017, this category has overtaken textiles to rank second in export value.

By 2023, after many years at the top, phones and components were overtaken by computers, electronics, and components as the leading export category.

Phones and components also saw exports rise from USD 21.2 billion in 2013 to USD 52.3 billion in 2023. Although no longer the top export, they still played a vital role, accounting for 14.7% of Vietnam’s total exports in 2023.

Where Are Vietnamese Enterprises in the Electronics Supply Chain?

In discussing the electronics sector, Samsung must be mentioned—a multinational corporation operating six factories in Bac Ninh, Thai Nguyen, and Ho Chi Minh City, along with an R&D center in Hanoi and a trading company.

Currently, Samsung’s four factories in Vietnam contribute about 30% of its global revenue and 33.5% of its global profit. In 2023, Samsung Vietnam’s export turnover reached USD 55.7 billion.

At a recent meeting with Prime Minister Pham Minh Chinh on May 9, Mr. Park Hark Kyu, Samsung’s CFO, said the group invested an additional USD 1.2 billion in 2023, bringing its total investment in Vietnam to USD 22.4 billion, and plans to invest another USD 1 billion annually.

Vietnam is increasingly attractive to multinational electronics manufacturers. Samsung in particular and FDI enterprises in general play an increasingly significant role in Vietnam’s electronics supply chain.

According to Fitch Solutions, about 65% of foreign electronics companies in Vietnam are based in the North, 30% in the South, and a small percentage in the Central region.

The Northern region hosts many major electronics companies such as Fuji Xerox, Compal, Canon, Foxconn, Petragon, Samsung, Meiko, Samsung Display, LG Display, Intel, LG Innotek, Renesas, Wintex, Panasonic, Luxshare, USI, LG Electronics, and Hosiden.

These companies operate in industrial zones in Hai Phong, Bac Ninh, Bac Giang, Thai Nguyen, and Ha Nam in the North; and Binh Duong, Ho Chi Minh City, and Dong Nai in the South.

According to aggregated research from CIEM, there are currently over 2,000 companies in Vietnam involved in the electronics industry. Domestic firms account for 54.8%, while FDI companies make up 45.18%. However, FDI enterprises dominate in terms of workforce and revenue, accounting for over 90% of the sector.

However, the localization rate in Vietnam’s electronics industry remains low. Most electronics in the Vietnamese market are either fully imported or assembled locally using foreign components. While supporting industries have entered the supply chain, they mainly produce low-tech components with modest value.

Given the market demand, there is a significant opportunity for Vietnamese companies—especially small and medium enterprises (SMEs)—to participate in the value chain, provided they improve their production capabilities.

Opportunity to Own a Green Standard Factory in the Consumer Electronics Sector

To explore opportunities and practical solutions for supporting SMEs in the electronics supporting industry in the Red River Delta, a workshop titled “Opportunities to Own Green Standard Consumer Electronics Factories for SMEs” was held on May 28 in Hanoi.

The event was organized by the G20 Industrial Alliance in cooperation with Hung Yen province, the Vietnam Electronics Industries Association (VEIA), Hung Yen Group, and DTJ Group.

The workshop aimed to help VEIA member businesses improve competitiveness, access green factory investment solutions, and learn about attractive policies from Hung Yen province and industrial park developers, along with other investment support.

The program is part of the “Unlocking the Green Supply Chain in the Red River Delta” event series organized by the G20 Industrial Alliance, with the goal of supporting enterprises participating in global supply chains.

Location: 3rd Floor, Vinata Office Building, 289 Khuat Duy Tien, Cau Giay, Hanoi
Details and registration: https://forms.gle/CoHCk6S3u1hSgg738
Hotline: 08 8608 8609

Source: mekongasean.vn

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