14:22 | 11/04/2020 Industry
The first quarter of the year has seen parts of the electronics industry, such as the manufacturing of electronic products, computers, and optical fiber products, enjoy a 14.3% growth despite the negative effects of the novel coronavirus (COVID-19) epidemic, according to the Ministry of Industry and Trade (MoIT).
Throughout the reviewed period, the industry faced a number of issues, including a shortage of input supply sources necessary for developing components in production due to the impact of the COIVD-19 epidemic.
Despite these challenges, the manufacturing industry and their electronic components have posted robust growth, the majority of which can be attributed to the launch of a new generation of smartphones by Samsung Vietnam.
In addition, a number of foreign-invested enterprises such as LG Electronics continue to shift their production lines to the country, while exports to traditional markets have also been boosted after China limited its exports amid the COVID-19 outbreak.
Despite recording a high growth, MoIT experts believe the COVID-19 epidemic will ultimately go on to negatively affect the industry in the year’s subsequent quarters as a result of a reduction in consumption demand from both the United States and the EU, which account for 17% and 24% of the export turnover of telephones and components, respectively.
Both the US and the EU also represent two key export markets for Samsung Electronics Vietnam, making up to 50% of the company’s total export value.
Indeed, Samsung's overall global sales and outputs are projected to suffer declines due to the impact of the ongoing epidemic on the electronics industry.
Samsung Vietnam is also expected to lower its export target to approximately US$45.5 billion in 2020, in contrast to the figure of US$51.38 billion obtained last year, according to the MoIT.
To minimise the impact of the COVID-19 epidemic, Truong Thanh Hoai, the MoIT Director of the Industry Department, underlines the importance of devising drastic measures in an attempt to protect the electronics market whilst also supporting promising domestic electronics firms to enjoy further growth.