A view at the Samsung factory in Thai Nguyen where cellphones are manufactured. (Photo: VNA) Hanoi (VNA) – Vietnam produced 34.3 billion USDworth of cellphones and components for export in 2016, 99.8 percent of which,or 34.2 billion USD, made by FDI enterprises.
According to the Vietnam Electronic IndustriesAssociation (VEIA), exports of cellphones and components in 2016 and the firstfew months of 2017 helped the country improve its trade balance and reduce thetrade deficit.
Foreign companies accounted for one third of thecountry’s electronic firms but they make up 90 percent of the total exportrevenue in electronics and 80 percent of the nation’s market share.
The low local content ratio in manufacturing may holdback Vietnam’s economy, according to chief representative of the Japan ExternalTrade Organisation (JETRO) Hironobu Kitagawa.
He cited an example of Japanese enterprises in Vietnam,where the localisation proportion made up 34 percent of the value of their materials,components and accessories, while that in China and Thailand were 68 percentand 57 percent, respectively.
Therefore, they have to import inputs from Vietnam’s neighourssuch as China and Thailand, leading to bigger costs and risks, he added.
Japanese firms are looking for more local suppliers toenhance their competitiveness and this will require the electronic industry inVietnam to increase productivity, strengthen supply chain and improve the localisationratio.-VNA
VNA
