An overview of seminar themed "Enhancing linkage opportunities in the electronic supply chain” (Source: VNA) HCM City (VNA) – Vietnam’s electronics enterprises should enhancelinkages and increase productivity if they want to grow sustainably andintegrate more deeply into the global supply chain, experts said at a seminarin Ho Chi Minh City on March 13.
Electronics is one of the keyindustries which are enjoying impressive growth in recent years and has becomea spearhead export sector of Vietnam.
In the last decade, the number ofelectronic enterprises has risen four-fold to 1,021, and the number of workersincreased to more than 500,000, Nguyen Phuong Dong, Deputy Director of themunicipal Department of Industry and Trade, said at the seminar themed“Enhancing linkage opportunities in the electronic supply chain”.
However, the sector is still inthe first phase of the electronic production chain, as domestic firms havefocused only on assembling and after-sales services, Dong said.
Truong Thi Chi Binh, Vice Chairwomanand Secretary General of the Vietnam Association of Supporting Industries(VASI), said that Vietnamese electronic enterprises have yet to contribute properlyto the country’s electronic product export value.
She pointed to the fact that thecountry’s supporting industry has yet to keep up with production demand, resultingin a low supply of domestically-produced components.
According to Binh, at present 77 percent of components are imported. Notably,up to 98.2 percent of basic electronic and electric components are bought fromabroad.
To participate in the global supplychain, Vietnamese electronic enterprises must first meet safety demands andtechnical requirements and limit hazardous content in their products, she said.
VASI can actively supportenterprises by providing consultancy, training, information, and databases andconnecting them with international markets, Binh added.
Bui Thi Ninh, from the VietnamChamber of Commerce and Industry (VCCI)’s Branch in HCM City, stated theelectronic industry has a very high growth rate and short life cycle forproducts, requires large investments, yields high profits but comes with fiercecompetition and high risks.
To facilitate the linkagesbetween electronic firms, the VCCI put forward an initiative to establish an allianceof electronic firms to help them strengthen cooperation and solve challengesfacing the sector, thus helping improve their brand names and competitivenessand minimise business risks.-VNA
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