According to the Center for Industry and Trade Information (Ministry of Industry and Trade), the fact that many foreign investors continue to expand projects in Vietnam will contribute to promoting the development of the electronics industry and attracting more new foreign investors to the Vietnamese market in 2022.
Illustrative photo. Source: Samsung Vietnam
The electronics and components industry is a bright spot in Vietnam’s economy.
According to the Ministry of Industry and Trade, in the 2016-2020 period, the electronics and components industry has developed very strongly with foreign investment projects. Large corporations such as Samsung and LG have invested in building large-scale production facilities for high-tech electronic products in Vietnam.
Specifically, Samsung Group from Korea started production activities in Vietnam since 2008 with the first investment project being Samsung Electronics Vietnam (SEV) mobile phone factory in Bac Ninh. After that, Samsung Vietnam continued to build another large manufacturing plant in Thai Nguyen (SEVT).
The production activities of these two factories contribute significantly to Samsung’s revenue and profit and the local budget. These are also two of Samsung’s largest mobile phone factories worldwide.
After more than twelve years of operation in Vietnam, Samsung now has a total of six factories and is building a research and development center in Hanoi.
Similarly, LG Group (Korea) is also a large corporation that has invested and operated in Vietnam since 1995. LG owns three factories producing LG’s main products, including LG Electronics Vietnam Hai Phong specializes in manufacturing electronic products; LG Innotek Vietnam Hai Phong specializes in manufacturing and selling electronic components; and LG Display Vietnam Hai Phong specializes in manufacturing LCD and OLED screens.
In addition to Samsung and LG, another prominent foreign investment project in Vietnam is Vietnam Intel products – an investment project of the US since 2006 and put into operation in 2010.
This is the largest US investment in high technology in Vietnam worth more than US$1 billion, making Vietnam the largest manufacturing, assembly and testing facility in Intel’s worldwide network.
Besides Samsung, Intel is also a name that helps to attract large foreign investment in the high-tech sector thanks to its advancement in technology as well as in production. In early 2021, Intel raised capital by US$475 million.
A representative of the Industry and Trade Information Center said that another famous name in the electronics field is Foxconn Technology Group from Taiwan (China), which has hundreds of branches around the world.
Foxconn Group is known as Apple’s main component supplier and manufacturing partner, specializing in the production of computer-related equipment, electronic goods, information technology. Apple products are outsourced and manufactured in Vietnam such as AirPods, Apple Watch, iPad and Macbook.
It would be remiss not to mention the strong development of the electronics and components industry with foreign investment projects without mentioning that Canon Vietnam Co., Ltd. is a member of Canon Corporation (Japan). The main products are printers.
Canon Vietnam has been operating since 2001 and has three main factories including Thang Long Factory (Hanoi) specializing in the production of inkjet printers and photo scanners; Que Vo factory (Bac Ninh) specializing in the production of laser printers; and Tien Son factory (Bac Ninh) specializing in the production of inkjet printers.
The representative of the Industry and Trade Information Center mentioned Goertek Vina Science and Technology Co., Ltd., a member of Goertek Technology Group from Hong Kong (China) specializing in research and production of technological equipment. Goertek’s first project in Vietnam was in 2013 in Bac Ninh. This group is starting to build another factory in Nghe An.
It can be seen that the electronics and components industry in Vietnam, although newly formed, has grown very strongly. Vietnam has risen to the top of the group of key electronics exporters, from 47th in 2001 to 11th in 2020.
The continued expansion of projects will contribute to promoting the development of the electronics industry and attracting new investors to the domestic market in 2022.
By Thanh Nguyen/Quynh Lan