Vietnam has a host of opportunities to be part of electronic supply chains as major corporations transition their manufacturing to the country.

At the opening ceremony for the “Vietnam Electronic Forum 2022” exhibition, Mr. Vu Trong Tai, General Director of RX Tradex, said Vietnam attracted over $10 billion in new foreign investment in the first half of this year. This investment is beneficial for the development of Vietnam’s electronics industry.

A number of large companies have begun to move production from China to Vietnam, such as Foxconn and Samsung, while Apple has started producing iPads in the country.

“This proves that Vietnam’s electronics industry has the opportunity to develop and participate more deeply in global supply chains,” Mr. Tai said.
The opportunities for Vietnamese businesses are substantial, especially now that the electronics manufacturing industry has high-value products that Vietnam has not yet been able to manufacture. Starting from a nascent industrial field, the country can gradually move up in the global value chain.

To do so, businesses will need to consider long-term investment in technology and equipment to improve productivity and quality to better compete in the global market.

Ms. Do Thi Thuy Huong, Member of the Board of Directors at the Vietnam Electronics Industry Association (VEIA), said a large proportion of FDI in the first eight months of this year went to technology.

“This is a good sign, and through this capital flow, Vietnamese enterprises have many opportunities to expand production and find more partners and customers,” she said.

She also noted, however, that much effort is needed for this to happen, as in addition to the opportunities, there are also many challenges due to competition with foreign suppliers.

Businesses require support from the government in regard to technological innovation and human resources training in line with movements in Industry 4.0.