Hanoi (VNA) – Vietnam should pen a general plan to shape up anelectronics sector with higher value as the industry is currently assemblingand processing simple products, according to experts.
In fact, although Vietnam is the world’s 12th largest electronics exporterand the third largest in ASEAN, some 95 percent of the country’s electronic exportrevenue comes from foreign-invested enterprises instead of domestic firms.
According to the Ministry of Industry and Trade, export value of the sectorincreased over 50 percent on average during 2010-2018, the highest level in theworld. However, the impressive growth is backed by heavy investment from largemultinational groups, particularly those from the Republic of Korea and Japan.
Actually, foreign enterprises operating in the country account for the lion’sshare of the value, with domestic firms producing relatively little.
The ministry said that local firms have shown theirlimitations in production capacity, with products’ quality and designs failingto meet requirements of the market. Meanwhile, a multitude of popularVietnamese electronic firms are making stagnant development, having theirbrands fade out, and accounting for teeny market share.
Several made-in-Vietnam mobile phones such as BPhone, Vsmart and Viettel aregaining popularity among local consumers; however, foreign brands aredominating the local electronic market.
To address challenges the Vietnamese electronics industry is facing, expertssuggest the establishment of research and development (R&D) centres todevelop advanced technologies and machines for the sector.
They emphasized the need to set up a sustainable business ecosystem withceaseless innovations. In this ecosystem, the government will play an importantrole to create initiatives and provide technology and management skills withsupport from universities and experienced experts, they said.
Production of high-added value products such asscreens, semiconductors and electronic spare parts should be prioritized. Therefore,heavy investment must be made to improve production capacity and technology, inaddition to a long-term support strategy./.
VNA