For the past three years the export of mobile phones and other electronic products has been one of the country’s top ten hard currency earners increasing revenues of 2.8 billion USD in 2009 to almost 4.7 billion USD last year. By the end of August this year, export turnover of mobile phones and parts had reached 7.4 billion dollars and that of other electronics was 4.8 billion USD. By the end of the year, these two export categories are expected to earn 16 billion USD. This success has validated Vietnam’s electronics and made it a spearhead sector. Nguyen Duc Thang directs the Tien Dat Electronics Company ‘Vietnam’s exports of electronics and electronic parts are growing rapidly. Now export revenue is more than 10 billion dollars a year while in the past the figure was only a couple billion dollars. Last year, Vietnam earned over 10 billion dollars from exporting these products and it’s expected to earn 15 billion dollars this year.’
Despite the growth, Vietnam’s electronics industry is facing some problems in product re-structuring. Le Ngoc Son, President of the Vietnam Electronics Association, said that to continue growing the sector needs more state support ‘There’s an imbalance between consumer electronics which account for 70% and electronics for professional purposes in Vietnam, while developed countries are often strong in both, TVs, Audio equipment, and other consumer electronics along with medical and industrial electronics.’
Vietnamese electronic products can now be bought in Japan, the Republic of Korea, Singapore, and Malaysia and the sector is trying to penetrate North and South, America, other Asian nations, and Africa. Although the volume of exports remains limited compared to other regional countries, Vietnam has been assessed as one of the most reliable destinations for investors, according to President of the Vietnam Electronics Association Son. Son noted ‘The Vietnamese Government will outline a strategy to develop the sector’s auxiliary industries. When a world leading electronic enterprise invests in Vietnam, it will need supporting industries to provide auxiliary items. If we follow this direction, Vietnamese businesses will become satellite companies and supply components to our foreign partners.’
To improve the competitiveness of the Vietnamese electronics both domestically and internationally, Vietnam is attaching a great deal of importance to researching new products and increasing their value. More policies and incentives will also be put in place to attract global companies, on top of upgrading the infrastructure and establishing supporting industries.