Illustrative image (Source: VNA)
 
Hanoi (VNA) - The importance of enhancing policy dialogue between investment countries and investment recipients, and the role of the electronic industry in Vietnam were highlighted at a recent workshop in Hanoi.

Jointly organised by the Vietnam Chamber of Commerce and Industry (VCCI), the Japanese Government, the International Labour Organisation (ILO) and the Vietnam General Confederation of Labour (VGCL), the event also focused on successes and significant contributions of the electronic sector to Vietnam’s development.

VCCI Chairman Vu Tien Loc said the electronic industry is a proof for Vietnam's success in the process of development and integration, noting that in a short time, it has become one of the important sectors in the local economy.

Vietnam is one of the world's 12 leading electronic workshops and the third largest one in ASEAN.  In 2017, the industry’s export turnover totalled over 71 billion USD, 2.5 times and 5 times higher than those of the textile and footwear sectors, respectively.

From 2012-2017, the number of electronic firms doubled, standing at 1,237 in 2015. The number of labourers working in the industry also tripled to 611,492 in 2017 from 238,821 in 2011.

The sector is also playing a great role in attracting foreign direct investment (FDI) to Vietnam, Loc said.

However, the official also pointed out challenges facing Vietnam as FDI firms account for 95 percent of the sector’ export turnover and 70 percent of its domestic sales.

FDI electronic companies in Vietnam mainly specialise in assembling, with a low localisation rate, he noted.  

FDI enterprises have not yet set up strong links with local small and medium-sized enterprises to reduce production costs, improve competitiveness, and increase mutual support among them.

As part of measures to the issue, last year, an electronic business alliance was established, while a project to improve the quality and quantity of jobs through responsible labour practice in Vietnam’s electronic industry was piloted, with the aim of fostering connection between FDI firms and Vietnamese peers, towards promoting and ensuring successful integration of Vietnam’s electronic sector, thus benefiting both FDI and local businesses.

As many as 127 enterprises have benefited from the project through training activities and policy dialogues. The firms have indirectly generated nearly half of jobs in the sector.

Many enterprises affirmed that the implementation of social responsibility in the electronic industry would help improve competitiveness because it can attract skilled labourers and improve the skills of employees working in the field.

As they have high-quality human resources, electronic firms can promote renovation and application of new technologies to create good-quality products, Loc said.

According to Lee Chang-hee, Director of the ILO office in Vietnam, in other countries, strategically economic sectors like the electronic industry are creating the momentum for the whole economy.

That is why it is important to invest in establishing and expanding this alliance, which can be multiplied in other sectors, he said.-VNA