Growth surpasses textiles

The electronics industry is a manufacturing industry with a key position in the economy and a strong spillover impact on other industries. At the same time, it measures the economic and technical development level of every country in the world. Vietnam's electronics industry currently accounts for 17.8%, mainly producing electronics, computers and optical products.

As a product that accounts for an increasingly large proportion of total export turnover, the growth of electronics, computers and components greatly influences the overall growth of the country's exports. In 2011, exports of electronics, computers and components only accounted for 4.8% of total export turnover; by 2015, the proportion had doubled, accounting for 9.6% and always maintained the above level of 10% from then to now (15.8% in 2020 15.1% in 2021 and 15% in 2022). In 2022, exports of electronics, computers and components will rank second among eight product groups with a turnover of over US $10 billion in Vietnam: phones and components; electronics, computers and components; other machinery, equipment, tools and spare parts; textile; shoes; wood and wood products; means of transport and spare parts and aquatic products.

The strong growth rate of electronics, computers and components has caused the export turnover value of this product group to surpass textiles and garments to become Vietnam's second-largest key export product group. By May 2023, electronics, computers and components continued to surpass phones and components to become the product group with the largest export turnover (reaching US $ 20.5 billion, exceeding via phones and components reached US $ 20.2 billion).

In the first eight months of this year, affected by the severe consequences of the COVID-19 pandemic and political and military crises, Vietnam's import and export activities faced many difficulties. Decreased quite deeply compared to the same period last year. Specifically, the total export and import turnover of goods in eight months is estimated at 435.23 billion USD, down 7.9% over the same period last year, of which exports are estimated at US $ 227.71 billion, down 10%; Imports reached US $ 207.52 billion, down 16.2%. However, the trade balance of goods in the first eight months of 2023 is a bright spot in import and export activities, with an estimated trade surplus of US $ 20.19 billion.

Of these, there are thirty items with an export turnover of over US $ one billion, accounting for 91.8% of the total (5 export items with an export turnover of over 10 billion USD, accounting for 58.4%). Electronics, computers and components are some of Vietnam's main export products, while many industrial production and export industries are trying to recover after the COVID-19 pandemic. Especially in the first eight months of this year, the export value of electronics, computers and components is estimated at US $ 36.2 billion, accounting for 14.9% of total export turnover, down slightly by 1.5% compared to the previous year. The decrease was lowest in the group of products with leading export value. The major export markets for this product group are the EU, the United States, and China.

Rang Dong's assembly line for LED products exported to the US market. Photo: Internet.

Expectations in 2023

According to the General Statistics Office, since the US-China trade war officially broke out in early 2018, the development prospects of the electronics, computer and hardware manufacturing industry have increased. Many experts consider The event bright when Vietnam has the opportunity to welcome investment from large technology corporations. Although it is considered a key industry and has achieved several achievements in attracting foreign direct investment and playing a large role in exports, Vietnamese electronics, computers and components Nam is at the early stage in the electronic product production chain and depends largely on foreign direct investment enterprises.

The products of Vietnamese enterprises have not focused intensely on deep processing, have not developed export products with high technology and intelligence content, and the proportion of processed and manufactured products with high added value is low. In the first eight months of 2023, the industrial production index for the manufacturing of electronic products, computers and optical products decreased by 3.9%, lower than the decrease of 5.1% in five months, 4.6% in six months and 4.3% of seven months. This is a positive signal about the recovery of production and export of electronic products, computers and components in 2023, forecasting a year of strong growth and a positive contribution of this industry to the recovery of the entire Vietnamese economy.

For the export activities of electronics, computers and components to truly develop sustainably in the context of Vietnam's integration with a series of signed free trade agreements, Dr Pham Tat Thang, specializing in Senior expert at the Institute of Industry and Trade Strategy and Policy Research (Ministry of Industry and Trade) said that more support solutions are needed from state management agencies and businesses. At the same time, there is more investment interest and consideration of preferential support for businesses in the stages of research, product trial production and trade promotion programs; Reviewing and improving legal policies, especially specific regulations on goods originating in Vietnam; Implementing solutions to expand domestic and export markets; Strengthening the role and effectiveness of trade representative agencies and industry associations in trade promotion; seeking business opportunities and expanding markets for businesses; Promoting propaganda and issue guiding documents to effectively implement and take advantage of opportunities to expand export markets and attract investment from newly signed free trade agreements.