In the context of rising US investment in Vietnam, Apple supplier 3M has established a new science and technology center in Hanoi, aiming to support the country’s burgeoning electronics industry.
Two of the thousands of components used in electronic products. Photo: Minh Son.
Amidst a shift in investment by many U.S. manufacturers toward Vietnam, one of Apple’s partners has just opened an electronics lab in Hanoi.
A new science, technology, and innovation center has been established in Hanoi. Named the Science, Technology, and Engineering Center, it was founded by 3M, a supplier of components to Apple. The center will serve as a testing and display facility for new products and materials used as input components for the electronics industry.
At the event, Amit Laroya, Senior Vice President for the Asia Region of 3M’s Transportation and Electronics division, noted that many manufacturers are looking to diversify their supply chains. In particular, companies from the U.S. are increasingly shifting their investments to Vietnam.
"When these companies move to Vietnam, they want supporting industries to be ready for the transition. That’s why we are present here, ready to support the economic shift," Amit Laroya shared.
According to Laroya, Vietnam’s competitive advantage lies in its people, with a young, energetic, and ambitious generation, as well as a favorable business environment. These factors make Vietnam an attractive destination for U.S. companies.
Vietnam is currently among the world’s leading countries in the production and export of electronics, particularly smartphones. According to the World Trade Report, Vietnam ranks second globally in mobile phone exports and fifth in computer and accessory exports.
Data from the Ministry of Information and Communications also shows that in 2023, Vietnam’s hardware and electronics export value reached an estimated USD 127 billion. The trade surplus in hardware and electronics amounted to nearly USD 13 billion.
However, there is a paradox: the key players in electronics production are mostly foreign-invested enterprises. Vietnam primarily participates in the electronics industry as an assembler, with thin profit margins and low added value. The lack of participation by domestic companies in supporting industries is also a weakness in Vietnam's supply chain.
Commenting on how to increase the localization rate of electronic products made in Vietnam, Amit Laroya stated that Vietnam’s supporting industries are already present. Evidence of this is the numerous industrial zones around Hanoi, where electronic products are being manufactured.
Amit Laroya shares insights on Vietnam’s supporting industries. Photo: Minh Son.
However, he emphasized that manufacturing companies in Vietnam are still in the early stages of a long process. Over time, the supporting industries in Vietnam will gradually accumulate experience, increase localization rates, and develop further.
One key area that Vietnam needs to focus on to develop its electronic supporting industries is human resource development, especially in the sectors Vietnam is targeting.
"Manufacturing companies need to collaborate with universities to develop human resources for the semiconductor and electronics industries, with training starting now. The cooperation between educational institutions and manufacturers to develop human resources is essential," Amit Laroya emphasized.
Deputy Minister of Planning and Investment Nguyen Thi Bich Ngoc noted that Vietnam is at a crucial point in its transition toward a digital, green, and circular economy.
In this context, Vietnam is prioritizing the strong development of science, technology, and innovation to boost productivity, improve quality, and enhance the competitiveness of the economy, helping the country overcome the middle-income trap and "catch up with" developed nations.
In recent years, Vietnam has proactively implemented various measures to attract investment and promote the comprehensive development of its innovation ecosystem, creating an environment that fosters research, development, and the application of science and technology.
"Vietnam encourages and prioritizes selective investment, focusing on high-tech, semiconductor, artificial intelligence, research and development, renewable energy, hydrogen, and infrastructure projects. These are also areas where U.S. investors have significant potential and strengths," Deputy Minister Nguyen Thi Bich Ngoc shared.
Vietnamnet.vn
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