The electronics industry offers opportunities

09:11 | 03/05/2014 Industry

(VEN) - The world’s leading electronics companies have strongly invested in the construction of manufacturing facilities in Vietnam. Together with a strong growth, the electronics industry offers opportunities for domestic businesses to strengthen cooperation and participate in the global value chain.

According to experts, the world electronics market would strongly grow in the next time with an average growth of 10-12 percent. Products are forecasted to strongly grow including digital devices, computers, especially tablets and mobile phones. In particular, digital devices would grow by 15-18 percent. In addition, markets would pay special attention to medical electronic equipment.

An economic crisis made a difficult period for the electronics market. However, the market was quick recovered and has strongly grown as applications of electronics, information technology and telecommunications are indispensable in any country or any socioeconomic sector. In addition, technology has fast changed and required new spare parts and accessories to create modern electronic devices. This is a great opportunity for the world electronics industry, including Vietnam.

According to statistics, export turnover and foreign investment capital in recent years has increased. Therefore, Vietnam’s electronics industry has made great progress. According to the General Statistics Office, in 2013 the electronics industry’s export turnover reached about US$32.2 billion, an increase of 57 percent compared to 2012 and ranked first among Vietnam’s export sectors. In addition, about 500 businesses are operating in the industry, including one-fourth of FDI businesses.

Vietnam has attracted foreign investment capital into the electronics industry thanks to reasonable mechanisms and policies and abundant human resources. In the past four years, foreign investment capital into Vietnam’s electronics industry reached more than US$10 billion with great projects of Samsung, Foxconn, LG, Winter, Panasonic and Intel. Vietnam has become an attractive destination for the world electronics companies.

Foreign investors have created jobs for tens of thousands of workers and used domestic services. In addition, they have helped develop support industries. The electronics industry has offered opportunities for domestic businesses to strengthen cooperation and participate in the global value chain.

Vietnamese businesses need to take advantage of these valuable opportunities to expand the market and participate in the production for large corporations operating in Vietnam, contributing to enhancing competitiveness, building and developing Vietnam’s electronics industry in the domestic and regional market.

According to experts, to participate in the supply chain of major corporations, businesses need to restructure products from producing consumer electronics to specialized products. Businesses need to manufacture high competitiveness products, meeting three conditions of high quality, timely delivery and reasonable prices.

A number of domestic businesses have proved its capacity in recent times. For example, ICDREC successfully designed and commercialized some kinds of specialized ICs such as VN8-01 for remote maritime surveillance system, a 32-bit VN1632 processor for complex control system which requires high speed such as mobile phones and media devices. These contributions have confirmed domestic businesses’ capacity and they are capable of participating in the value chain of the world electronics industry.

Vietnam’s electronics industry has basically met domestic demands for consumer products and exported products to nearly 50 countries in the region and the world. The electronics industry’s export turnover is expected to reach US$40 billion by 2017./.

                      Quynh Nga