10:03 | 30/07/2019 Industry
(VEN) - To promote the production of electronic components in Vietnam, the Reed Tradex Co., Ltd cooperated with the US Agency for International Development (USAID) to organize the Vietnam Electronics Forum 2019, themed “Linkage and dialogue between enterprises in the global supply chain”.
This year marks breakthrough changes in the Vietnamese electronics industry, including the trend of shifting production of electronic components from international markets to Vietnam.
Savi Phan Ngan, project manager at the Reed Tradex Vietnam, said Vietnam has been a bustling market for manufacturing industries with great potential to attract investment capital from countries around the world.
With the largest turnover and market share growth of electronic exports in ASEAN, Vietnam has grown to become the 12th largest electronics exporter in the world and the third largest in ASEAN. However, the Vietnamese electronics industry still faces many challenges. Most of the export value (95 percent) is created by the FDI sector, while domestic firms are not strong enough to participate in the global supply chain.
The majority of businesses operating in the electronics industry are small- and medium-sized enterprises. Ron Ashkin, director of the USAID’s LinkSME program, said only a few Vietnamese small- and medium-sized enterprises are able to participate in the supply chain for foreign businesses. He attributed the problem to the use of outdated technologies, low labor productivity, lack of experience in working with foreign companies, and weak financial access.
Dao Thi Thu Huyen, senior manager of the General Director Office at Canon Vietnam, said Vietnamese suppliers remain weak in engineering. In addition, they often lack ability to respond to unusual problems and customers’ changing needs, she said.
Do Thi Thuy Huong, a member of the executive board of the Vietnam Electronic Industries Association (VEIA), said Vietnam needs to focus on improving competitiveness and seeking measures to support businesses, especially those in the electronics industry. In addition, improving productivity and the business environment, promoting linkage of domestic supply chains, and strengthening connections between domestic businesses and FDI companies are extremely important, she said.
Nguyen Thi Xuan Thuy from the Ministry of Industry and Trade’s Industry Agency said that when the Vietnamese electronics industry builds a network of domestic suppliers with global competitiveness, it would help limit risks, reduce delivery time and save costs.
The Vietnam Electronics Forum 2019 is a pre-show activity of NEPCON Vietnam 2019 - Vietnam’s only exhibition of
SMT, testing technologies, equipment and support industries for electronics manufacturing. The event will take place
on September 11-13 in Hanoi with the participation of more than 200 leading brands from 20 countries, and include
seven international pavilions of global technology leaders, such as Japan, the Republic of Korea, China, Singapore,
and Chinese Taipei.