return icon Vietnamnet.vn

Electronics sector attractive to foreign backers

 VietNamNet Bridge – Viet Nam's electronic industry has attracted US$10 billion in foreign direct investment (FDI) capital from big names like Samsung, Foxconn, LG, Panasonic and Intel,

VietNamNet Bridge – Viet Nam's electronic industry has attracted US$10 billion in foreign direct investment (FDI) capital from big names like Samsung, Foxconn, LG, Panasonic and Intel, according to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment (MPI).



{keywords}

 

Employees at Korean invested Bluecom Vina Ltd work on an electronics chain in Trang Due Industrial Zone in Hai Phong – Photo: VNA/VNS

 

 

 

With the largest turnover and market share growth of electronic exports in ASEAN, Viet Nam has grown to become the 12th largest electronics exporter in the world and the third largest in ASEAN.

Viet Nam's electronics output ranked behind Thailand, Singapore and Malaysia in 2013.

Production bases have been shifting to Viet Nam in recent years to take advantage of preferential tax deals under free trade agreements such as the TPP and AEC.

Accordingly, the rules of origin force investors who want to take advantage to further access ASEAN or TPP member markets to invest in Viet Nam more intensively and transfer technology to achieve a higher localisation rate.

Attractive areas in Viet Nam's electronics industry are large-scale mobile phone factories. Samsung alone has invested in a $2.5 billion factory in the northern province of Bac Ninh and a $2 billion facility in Thai Nguyen.

The group has also invested $1 billion on a manufacturing factory in HCM City.

The plant in Thai Nguyen has attracted satellite investors, and electronics component producers have invested hundreds of millions of dollars in Thai Nguyen Province and Hai Phong City.

Challenges

However, domestic electronics enterprises do not contribute much to the electronics supply chain.

Samsung Viet Nam recently said that of the 80 satellite enterprises producing components and accessories, only 10 per cent were Vietnamese.

These companies mainly provide printing and packaging, which have the lowest added value. Another problem is competing with other countries in the region, and investors may move to other countries when the investment incentive period ends.

To attract more FDI to the industry, the FIA recommends enterprises build science and technology policies to encourage technology transfer, training, research and development; sign technological co-operation contracts with large countries, connect research institutions and businesses and select products and sectors for research priority.

Intellectual property laws should also be tightened so that domestic and foreign investors feel secure about investing, transferring technology and developing products.

VNS

MORE NEWS

Vietnam demands Taiwan to cancel illegal drills in Truong Sa’s waters

Vietnam resolutely opposes and demands Taiwan (China) to cancel its live-fire exercises in the waters around Ba Binh island that belongs to Vietnam's Truong Sa (Spratly), Vietnamese Foreign Ministry spokeswoman Le Thi Thu Hang stated on December 2.

Make-in-Vietnam cameras have high security, satisfy standards

Make in Vietnam camera manufacturers are enhancing security capability and satisfying requirements on information security set by the Ministry of Information and Communications (MIC) for devices such as cameras and Internet of Things (IoT).

Government plans to rearrange state-owned enterprises till 2025

Deputy Prime Minister Le Minh Khai has signed a decision approving a plan of rearrangement of state-owned enterprises for the period of 2022-2025 in the form of one-member limited company, equitization, re-arrangement and divestment.

Transport Ministry urges new ship channel for large vessels in Mekong Delta

The Ministry of Transport has urged Tra Vinh Province to implement compensation payment for site clearance and resettlement support to build a new ship channel for large vessels in the Hau River.

Toan retains WBA Asia belt against Amparo in Bangkok

Le Huu Toan successfully defended his World Boxing Association (WBA) Asia minimum-weight (48kg) belt during The Challenger event on November 30 in Bangkok, Thailand.

Billions of dollars from foreigners invested in Vietnam’s enterprises

Foreign capital keeps flowing into Vietnam through many different channels, helping investors regain their confidence in the stock market and the economy.

Urban areas, parks to be built on Red River alluvium grounds

Hanoi authorities plan to build new urban areas and eco-friendly housing, and develop open space with parks, urban squares and flood parks on thousands of hectares on the alluvium grounds of the Red River area.

Target of 1 million social housing units difficult to reach

The goal of developing 1 million social housing units may not be feasible.

Ministry to control rice import management

The Ministry of Industry and Trade (MOIT) fears the high level of rice imports and the failure to control imports will affect domestic production.

Gambling soars during World Cup

Football betting is taking place in the open air at venues where people gather to watch World Cup matches, or quietly online.

Michelin Guide to announce first Vietnamese restaurant selections

Hanoi and Ho Chi Minh City have been selected by Michelin as the latest destinations joining the international selection, as compiled by the Michelin Guide.

Ministry to crack down on Internet ads violations

The Ministry of Information and Communications held a conference in Hanoi on November 30 to roll out Internet advertising management measures.

Seven-day Tet holiday fixed for State employees

Officials, civil servants, public employees and workers of State administrative and socio-political organisations will enjoy a seven-day Lunar New Year (Tet) and four-day National Day holidays next year.

Vietnam has opportunity for energy transition towards green growth

Vietnam boasts substantial potential for wind power, particularly offshore wind power, providing an opportunity for the country to fulfill its energy transition target towards green growth.

PM requests combined efforts to combat IUU fishing

Prime Minister Pham Minh Chinh called for concerted efforts to fight illegal, unreported and unregulated (IUU) fishing while chairing a teleconference with 28 coastal provinces and cities on December 1.
back_to_top