Vietnam should pen a general plan to shape up an electronics sector with higher value as the industry is currently assembling and processing simple products, according to experts.
In fact, although Vietnam is the world’s 12th largest electronics exporter and the third largest in ASEAN, some 95 percent of the country’s electronic export revenue comes from foreign-invested enterprises instead of domestic firms.VNA/VOV
According to the Ministry of Industry and Trade, export value of the sector increased over 50 percent on average during 2010-2018, the highest level in the world. However, the impressive growth is backed by heavy investment from large multinational groups, particularly those from the Republic of Korea and Japan.
Actually, foreign enterprises operating in the country account for the lion’s share of the value, with domestic firms producing relatively little.
The ministry said that local firms have shown their limitations in production capacity, with products’ quality and designs failing to meet requirements of the market. Meanwhile, a multitude of popular Vietnamese electronic firms are making stagnant development, having their brands fade out, and accounting for teeny market share.
Several made-in-Vietnam mobile phones such as BPhone, Vsmart and Viettel are gaining popularity among local consumers; however, foreign brands are dominating the local electronic market.
To address challenges the Vietnamese electronics industry is facing, experts suggest the establishment of research and development (R&D) centres to develop advanced technologies and machines for the sector.
They emphasized the need to set up a sustainable business ecosystem with ceaseless innovations. In this ecosystem, the government will play an important role to create initiatives and provide technology and management skills with support from universities and experienced experts, they said.
Production of high-added value products such as screens, semiconductors and electronic spare parts should be prioritized. Therefore, heavy investment must be made to improve production capacity and technology, in addition to a long-term support strategy.