A production line of Young Poong Electronics VINA company in the Binh Xuyen II industrial park in Vinh Phuc province (Photo: VNA) Hanoi (VNA) – Some largeelectronics manufacturers in Vietnam are feeling the punch from the COVID-19outbreak as material imports and finished product exports have been affected bytighter border control aimed at preventing the disease from spreading.
According to the Industry Agency under theMinistry of Industry and Trade, electrical and electronic products, includingmobile phones and televisions, have the biggest turnover among commoditiesVietnam trades with China and the Republic of Korea (RoK), where COVID-19 israging.
Like automobile, textile-garment and footwearproduction, the electronics sector is suffering from a shortage of componentsfor manufacturing. In 2019, Vietnam imported some 40 billion USD worth ofelectronic components, including 16.8 billion USD from the RoK (accounting for42 percent), 13.8 billion USD from China (34 percent), and 1.7 billion USD fromJapan (4.2 percent).
Therefore, border control measures taken toprevent the disease will influence the import of materials and the export offinished electronic products, the agency said.
Samsung Electronics Vietnam, a large companyinvested by the RoK, said border control may affect the production of severalnew strategic models since some components and spare parts for manufacturinghave to be imported from China, mainly via border gates in northern Lang Sonprovince.
Although Lang Son authorities are working tospeed up customs clearance for a batch of component imports at the request ofSamsung, its material supplies from China in the time ahead are forecast to beaffected since the neighbouring country plans to shut down its border gates.This will subsequently make Samsung unable to import components by road, thefirm said.
Samsung Electronics Vietnam added import by airor sea is currently under consideration, but it will be more difficult than viaroad since it is costlier and hard to supply enough materials for production ina timely manner.
Recently, Samsung has still imported componentsfrom the RoK as usual. However, this country has also reported a COVID-10outbreak over the last few days.
The company predicted more difficulties for itsproduction inputs if the RoK Government applies export-import control measuresto prevent the disease.
Electronics manufacturers and associations inVietnam are proposing the Government directly negotiate with central and localauthorities of China about border control and disease prevention measures so asto ensure material supplies. They also called for financial support forcompanies in this sector to overcome difficulties.
Director of the agency Truong Thanh Hoai saidhis office will help businesses seek other material sources and increase tradepromotion activities in search of new export markets, especially those takingpart in the free trade agreements that Vietnam is also a member like theComprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)and the EU-Vietnam Free Trade Agreement (EVFTA).
For the long term, the Ministry of Industry andTrade has suggested many solutions to address existing shortcomings to theGovernment, including developing supporting industries and those producingimportant materials, he added./.
VNA
