Sunday, 21 Apr 2019

Vietnamese electronics industry attracting interest from foreign investors

Updated at Thursday, 12 Oct 2017, 14:31
The Hanoitimes - Electronics industry with the presences of foreign investors has contributed significantly to the increase of Vietnam export. In order to continue attracting investors, one of the important factors is to have appropriate infrastructure to meet the demand of investors.
Recently, Meiko Electronics Vietnam, one of the global leading companies in manufacturing and assembling electronic components, has hired infrastructures and land plot at the Quang Minh industrial complex under the TNI Holdings Vietnam to build the 3rd electronics factory of the company in Vietnam with the total investment of more than 50 million USD.

With the presences of big electronics corporation, the Vietnam electronics industry in general and the supporting industry for electronics in particular will continue attracting interests from big enterprises. Vietnam currently is one of the attractive destination for the Foreign direct investment (FDI) fund in electronics industry. As of present, the Vietnamese electronics industry has attracted more than 10 billion USD from the FDI fund with leading enterprises such as Samsung, Foxconn, LG, Panasonic, Intel, and others.

In 2006, when officially investing in Vietnam through its first electronics factory, Meiko Electronics Japan had cooperated with TNI Holdings Vietnam to construct the factory in Thach That Industrial Complex. The project at that time is one of the biggest 10 FDI projects in 2006, as well as one of the biggest electronics production from foreign investors in that period. Electronics industry with the participation of big investors have significantly contributed to the improvement of Vietnam export and growth.

According to statistics of the Custom Department, export in the first 8 months of 2017 has increased 19.3%, equivalent to an increase of 21.9 billion USD compared to the same period of last year. There are 20 categories of goods which has the export value more than 1 billion USD, in which 5 categories of goods have the export value of more than 5 billion USD.

In particular, the Custom Department regarded the category of smart phones and related components have the highest growth rate for many years, which is approx. 27 billion USD, up 18% compared to the same period of last year. According to the evaluation of the Ministry of Industry & Trade, smart phones, laptop and related components for export has contributed to the increase of production by 25%. 

To attract large FDI enterprises, one of the most important factors is is to have appropriate infrastructure to meet the demand of investors, which is also a big concern for many investors when considering the option for investment. As such, TNI Holdings Vietnam currently has more than 400 enterprises investing in industrial complexes, in which 300 foreign investors from Japan, China, US, Germany, Korea, Thailand, Hong Kong and Taiwan. 

Recently, the government has encouraged Foreign Direct Investment (FDI) enterprises to increase cooperation with domestic enterprises, with an aim to spread the effect of FDI to the economy as a whole. After 30 years of the government’s effort in attracting FDI, there remains work to be done to increase the efficiency of this important fund to the economy.

In overall, Vietnamese enterprises would need to have long term strategy for development, being able to quickly adapt to requirements of FDI enterprises; continuously improving capabilities in the context of global integration. Besides, the government also needs to increase the role of associations and organizations in connecting domestics enterprises and FDI enterprises. 
Nguyen Tung
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