Trang tiếng Việt
Vietnam's export of electrical and electronic equipment in Q3/2016

VIETRADE - Vietnam's consumer electronics market ratcheted up thanks to tariff reductions and retail sector liberalization in 2015, factors that will diminish, and add to that a forecast that spending will decelerate to a compound annual growth rate (CAGR) of 6.5% during 2016-2020.1

 

Evaluations conclude that Vietnam is a relatively attractive destination for producers of consumable electronics; specifically, there are abundant and high-skilled workers, low costs, an actively developing economy, and a domestic and regional market of potential with a low level of protection. These are factors attracting foreign investors in these product groups for both exports and serving domestic markets thru electronic products for household consumption, and which apply new technology and have short life cycles. The increasing presence of many foreign corporations in this field in Vietnam brings about opportunities and serves as a catalyst for Vietnamese enterprises to become domestic suppliers, contractual manufacturers or joint venture.

 

The top export products in this group include: (1) telephones, mobile phones and parts thereof; (2) machine, equipment, tools and instruments; and (3) computers, electrical products, spare-parts and components thereof.

 

Vietnamese electrical and electronic equipment export revenue 2010–2016 (in billion US$)

 Vietnams_export_of_electrical_and_electronic_equipment_in_Q3-2016_1

Source: General Department of Vietnam Customs


Continuing 2015’s export success, export revenue for telephones, mobile phones and parts thereof in the first nine months of 2016 brought in total export revenue of US$25.5 billion, up 11% compared to the same period of the prior year. The largest importer was EU-28 at US$8.01 billion (up 5.1%, accounting for 31.4% of Vietnam’s total export revenue from this product group), followed by UAE (US$3.2 billion – down 11.2%, accounting for 12.4%), the US (US$3.1 billion – up 56.3%, accounting for 12.3%).

 

Machine, equipment, tools and instruments’ exports were US$988 million for September 2016, bringing in total export revenue for the first nine months of 2016 at US$7.31 billion, up 24.6% over that of the same period of the preceding year. General Department of Vietnam Customs documented that the US continued to be the largest importer of this product group from Vietnam, with total export value of US$1.52 billion, up by 31% y-o-y. Japan followed, importing US$1.14 billion, up 10%; and China – US$815 million, up 56.5%.

 

Vietnam’s machine, equipment, tools and instruments exports by country for the first 9 months of 2016

 

Source: General Department of Vietnam Customs

 

Meanwhile, exports of computers, electrical products, spare-parts and components thereof reached US$1.73 billion in September 2016, bringing in total export revenue for 2016’s first nine months of US$12.89 billion, up 13.7% compared to the same period of the prior year. China was leading in the list of the country’s main export markets of computers, electronic products and components with US$2.42 billion, up by 26.6% y-o-y, accounting for 18.8% of Vietnam’s total export revenue of this product group. The US followed - with US$2.42 billion, up by 6.7%, accounting for 16.8% of the country’s total export revenue of this product group; then Netherlands – US$1.22 billion, up by 53.5%, accounting for 9.5%.

 

Vietnam’s computers, electrical products, spare-parts and components thereof exports by country for the first six months of 2016

 

Source: General Department of Vietnam Customs

 

Considering the level of growth in exports of this commodity group in the first 9 months of 2016, there are 22 out of 38 achieving positive growth in turnover compared to the same period last year. Of which, some markets got higher growth including Hungary - up 139.1% y-o-y; Belgium – up 103.0%; Slovakia - up 89.2%; and South Korea – up 79.6%.

 

A favorable demographic structure, experts agree, is enabling the electronics industry’s growth. The government's vision for 2020 targets the development of the electronics industry by establishing IT parks, an electronics association, and developing human capital. Semiconductors are surging in demand, and production is likely underway with the construction of front-end fabrication units in Vietnam. Expect demand for consumer electronics - such as mobile handsets, audio-video, and gaming devices – to shoot up. A  well-conceived proactive policy on environment, burgeoning electronics demand, and immense potential for manufacturing of semiconductors, circuits, and consumer durable will result in a well-developed electronics industry in Vietnam.2



1 Business Monitor International, Vietnam Consumer Electronics Report Q1 2016

2 Insight Alpha



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