Vietnam’s electronics industry heats up

Vietnam’s electronics industry heats up

A number of electronic manufacturers have come to Vietnam to develop multi-billion dollar electronics production projects.

Ten years ago, Vietnam was only a small link in the global electronics supply chain. today, it is a big electronics production base with $38 billion worth of electronic exports in 2014.

Exports are produced by factories bearing the world’s most famous brands.

In late May 2015, Samsung started the construction of SEHC, a household-use electronics complex in the HCM City Hi-Tech Park capitalized at $1.5 billion.

SEHC, covering an area of 70 hectares, is expected to become operational in the second quarter of 2016 and make high-end television sets and household-use electric products.

As such, Samsung has poured $12.6 billion into its projects in Vietnam so far.

This includes $8.9 billion injected into electronics projects – one in Thai Nguyen province with investment capital of $5 billion, the second in Bac Ninh with $2.5 billion, and the remaining in HCM City with $1.4 billion.

In 2013, Samsung’s electronics in Bac Ninh alone brought huge export turnover of $23 billion, which helped Vietnam gain a trade surplus in the year.

In late March 2015, LG inaugurated the LG Technology Complex in Hai Phong City, capitalized at $1.5 billion. This is the biggest LG complex in South East Asia which makes all the products of the group.

According to LG Vietnam’s CEO Ko Tae Yeaon, in the first phase of the project, it will make TVs, mobile phones, washing machines, air conditioners and digital devices for cars.

In the first five years, 70 percent of the products to be churned out by the complex will be exported to 35 countries.

It is expected that by 2020, the factory will put out 41 million phones, 2.3 million TVs and 2.2 million washing machines.

Maseco Group has recently announced the building of its third electronics factory in Nhon Trach District of Dong Nai province.

The manufacturer of Ariang karaoke player is following an ambitious plan to join the TV market, planning to launch an LCD TV into the market by 2016.

Market potential

Tien Dat was a well-known electronics brand to Vietnamese. Its TV products were once available in both rural and urban areas.

However, the fame could not help Tien Dat continue its prosperous business after Vietnam joined the WTO and had to open its market to foreign products.

Tien Dat’s products have disappeared from the domestic market, while the latest information on its official website was posted in 2008.

Sony, a big manufacturer, also had to give up the game.

In 2008, after a long period of taking losses, Sony shut down its production factory in Vietnam, which employed 200 workers.

vietnamnet