14:54 | 08/06/2017 Trade
(VEN) - The export value of telephones and components has grown steadily in the last two months following a decline in the first quarter of 2017 due to the faulty Samsung Galaxy Note 7 product.
According to the General Department of Vietnam Customs, Vietnam exported US$4.3 billion worth of telephones and components in April 2017, a rise of US$42.8 million compared with March. In the first four months, the export value of these products reached US$12.1 billion, up 6.9 percent compared with the same period last year.
In May, telephone and component exports continued to grow due to revenue from Samsung Galaxy S8 and S8 Plus.
In the first quarter of this year, the export value of telephones and components decreased by US$888 million compared with the same period in 2016 due to the Samsung Galaxy Note 7 incident, directly affecting Vietnam’s total export value. According to the Ministry of Industry and Trade’s Agency of Foreign Trade, Vietnam’s total export value in the first quarter would have grown 19 percent if it weren’t for the Note 7 glitch (in fact, the growth was 12.8 percent).
Made-in-Vietnam telephones and components have been exported to about 30 countries, with the US being the top market. In the first four months of this year, Vietnam exported more than US$1.3 billion worth of telephones and components to the US, accounting for 11.4 percent of total export value of these products. The United Arab Emirates ranked second, with US$1.2 billion, and was followed by South Korea with US$1.1 billion, up 33 percent compared with the same period last year.
Exports to South Korea are expected to increase strongly. Since the free trade agreement between Vietnam and South Korea took effect in late 2015, most Vietnamese exports to this market, including telephones, have grown strongly.
The first four months of this year saw a strong increase, 2,891.11 percent, in telephone and component exports to Cambodia compared with the same period in 2016. This was attributed to the reduction of taxes applied to exports to ASEAN countries following the establishment of the ASEAN Economic Community. Telephone and components exports to ASEAN countries are expected to grow further in the future.
Apart from Cambodia, exports to some other markets also increased considerably, for example to Brazil, up 91.36 percent, and to Japan, up 62.78 percent.
Hopes for S8
The export value of telephones and components is expected to continue growing strongly. At his recent meeting with the Vietnamese Prime Minister, Samsung Vietnam General Director Han Myoung Sup spoke about the recovery of the company’s exports. He said Samsung Vietnam expects its export value to reach about US$11 billion in the second quarter of this year.
Samsung Vietnam is striving to achieve US$50 billion in annual export value in 2017. This target is said to be feasible based on the orders received by Samsung for its newly launched Galaxy S8 and Galaxy S8 Plus phones.