Illustrative photo (Photo: baodautu.vn) Hanoi (VNA)– The increased inflow of investment from foreign investors into Vietnam’s electronicsindustry is expected to create a positive outlook for the country’sexports of computers, electronic products, and components in the time to come.
Regardless unexpectedexternal challenges like the COVID-19 pandemic, geo-political conflicts,increasing production costs, and the shortage of input material supply at somecertain times, Vietnam is still a destination attracting foreign directinvestment for the electronics industry.
In recent years, majormanufacturers such as Foxconn, Luxshare, Pegatron, and Wistron have invested in expanding their production in Vietnam.
LG Electronics from theRepublic of Korea plans to pour an additional 4 billion USD into Vietnam, making it amanufacturing hub of the world, Dau tu (Investment) newspaper reported onFebruary 8.
Hansol ElectronicsVietnam, a component supplier of Samsung, is implementing a 100-million-USDproject which will supply more than 10 million electronics products yearly forthe domestic market and export.
For years, the exportsof the electronics industry have been in second position in the group of keyexport products of Vietnam. Last year, Vietnam’selectronic product export revenue reached 55.54 billion USD, a year-on-yearincrease of 9.3%.
FDI companies havecontributed an increasing proportion of electronic product exports.
In 2019, the FDI sectorexported electronics products worth 32.047 billion USD, accounting for89.2% of the total export value of the electronics industry. In 2020, FDI companies’export value increased by 34.7% to 43.15 billion USD, accounting for 96.8% ofthe total export value of the industry. In 2021, FDI companiescontributed 49.7 billion USD or 97.8% of the total export value of theelectronics industry.
Expanded investment ofFDI companies is said to create a brighter export prospect for electronic products and components.
Outlook for the industryis quite clearer as Vietnam’s economy is much more open with 15 free tradeagreements that the country already signed are being implemented.
Such agreements createopportunities for Vietnamese exports to enjoy preferential taxes and favourableconditions when entering 60 markets all around the world./.
