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Foreign investors keen on domestic electronic sector PDF Print
Thursday, 26 November 2015 17:27

VIETRADE - Vietnam's electronic industry had to date lured US$10 billion in foreign direct investment (FDI) from electronics giants like Samsung, Foxconn, LG, Panasonic and Intel, chinhphu.vn reported.

 

Attractive areas in the country's electronics industry were large-scale mobile phone factories with two biggest ones being financed by Samsung in the northern provinces of Bac Ninh and Thai Nguyen with a combined investment capital of US$4.5 billion.

 

The South Korean group has also developed its third manufacturing factory, capitalized at more than US$1 billion, in HCM City.

 

According to the online newspaper, Samsung’s factory in Thai Nguyen has helped to attract many foreign-invested electronic component producers which had pumped millions of dollars into the province and other northern localities such as Hai Phong.

 

The newspaper quoted statistics from the Foreign Investment Agency (FIA) as saying that with the largest turnover and market share growth of electronic exports in ASEAN, Vietnam had become the 12th biggest electronic exporter in the world and the third largest in ASEAN.

 

In 2013, the country’s electronics production output just lagged behind Thailand, Singapore and Malaysia.   

 

Especially, in recent years, electronics giants had a tendency to shift their production bases to Vietnam to take full advantages of preferential tax deals to be brought by trade agreements that Vietnam was involved in such as Trans-Pacific Partnership and ASEAN Economic Community.

 

However, domestic electronics manufactures were yet to deeply join to the electronics supply chain, it said, taking Samsung Viet Nam as a good example.

The company recently said that only 10% of its 80 satellite enterprises were Vietnamese. These firms mainly provided printing and packaging, which had the lowest added value.

 

In order to attract more FDI to the industry, FIA emphasized the importance of developing suitable science and technology policies to encourage technology transfer, training, research and development, technological co-operation between domestic and international companies especially those from countries which had developed electronics industries such as Japan, the US and South Korea.

 

Facilitating co-ordinations between research institutions and business as well as selecting products and sector for research priority should be also included, the agency said.

 

According to FIA, it was also necessary to establish electronics clusters to attract more investment capital in electronics industry as well as foster research and development in the area with funds to be raised from the State budget or large electronics firms operating in Vietnam such as Samsung, Intel, Sony and Canon.

 

Intellectual property laws should also be tightened so that domestic and foreign investors could feel secure when they invested, transferred technology and developed products in the country, FIA noted.

 

Electronics and component exports up in 11 months

Exports of computers, electronics and components skyrocketed 38.2% to US$14.3 billion in the past 11 months, the General Statistics Office’s latest data revealed.

 

Meanwhile, exports of telephones and components also recorded a significant increase of 29.6% to US$28.5 billion, leading the list of top ten key export items during the reviewed period.

 

These products were mainly shipped to the EU, UAE, US, Hong Kong and South Korea. 

 

The Voice of Vietnam reported that many localities such as HCM City, Hanoi, Bac Ninh, Vinh Phuc, Dong Nai and Binh Duong provinces had been encouraging investor to further invest in support industry as move to lure big production groups in these above-mentioned fields.

 

For example, Vinh Phuc Province last month provided licenses for 13 South Korea- invested projects which would manufacture mobile-phone parts./.



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