Samsung workers in Bac Ninh province (Photo: VNA) With the presence of three factories of Samsung – the Republic of Korea’s manufacturing conglomerate – whose total investment nears 10billion USD at Yen Phong Industrial Park, Bac Ninh has risen to the top position in Vietnam in terms of industrial production scale, and become the largest electronics industrial manufacturing centre in Southeast Asia.
After more than 25 years of the re-establishment of theprovince, the electronics sector now accounts for 79.3% of the locality’s industrialproduction, and becomes a main contributor to its economic growth.
Today, the transformation of the economic structure fromlow-value industrial production and handicrafts to high-tech industry is posingmany challenges for industry development.
To enhance Bac Ninh's position in the value chain ofelectronic products, the province continues to focus on shifting production tohigh-value products such as smart phones and wearables, display and electroniccomponents by stepping up research and development of electronic products, andexpanding the supply chain through the production of electronics materials.
According to economists, the production of smartphones andsmart wearables has a lot of potential, with the annual growth rate in the 2020-2025period expected to reach 7.9%.
Bac Ninh already has the necessary advantages and supporting factors for theproduction of smart phones and wearables, including facilities and land atindustrial zones, a skilled workforce, and preferential mechanisms and policiesfor the operation of enterprises, and supply chains formed under FDI projectsof global brands such as Samsung, Canon, and Foxconn.
In addition, Bac Ninh is still a competitive destination interms of costs such as those on labour, land, utility services and transportation,in comparison to regional and international ones. Therefore, the development ofthe electronics industry, particularly the expansion of the production ofsmartphones and wearables, is forecast to continue creating a large number ofhigh-income jobs for locals.
Bac Ninh is also prioritising the production ofsemiconductor devices, which has an expected annual growth rate of about 6.9%in the 2020-2025 period. The province has a high demand for semiconductor devices andis capable of building a value chain by attracting Amkor Group to invest in YenPhong II-C Industrial Park, with a total amount of up to 1.6 billion USD.
To ensure sustainable development, Bac Ninh has carefullyreviewed, evaluated and appraised projects in the electronics sector, implemented policies to attract more investments, stepped up research anddevelopment activities, digital transformation and administrative reform,improved the business and investment environment, and promoted start-ups andinnovation.
Priority will be given to developing infrastructure forindustrial development, and expanding investment promotion in the electricity,electronics and supporting industries, capable of deeply participating in theglobal production network, with high spillover effects to other economicsectors.
Bac Ninh will also call on large domestic corporations and enterprises as wellas multinationals from Japan, the US, the European Union, theRepublic of Korea and China’s Taiwan to pour capital into the locality,encouraging investment cooperation between domestic and foreign enterprises. Atthe same time, the province will make the most of the advantages of regionallinkages to accelerate its development to turn Bac Ninh into a driving force for thedevelopment of the northern region and the whole country.
The northern province will also continue carrying out programmesrelated to supporting industry development, industrial promotion, and competitivenessimprovement./.
VNA
