Vietnam’s Demand for Machinery and Technology Steadily Rises

Vietnam’s export turnover of electronic, computer and telephone components is expected to keep rising. According to statistics of the General Statistics Office (GSO), Vietnam raked in US$2.1 billion from exported electronic products and components in the first four months of this year, up 98.6 percent over a year ago. This record export growth has attracted many leading electronics companies like Intel, HP, Foxconn, Samsung and Nokia to make huge investments for production projects in Vietnam. For example, Intel invested US$1 billion in its the chip testing and assembly plant in the Saigon Hi-Tech Park (SHTP) and Samsung is planning to build a new US$830 million production line in the country, raising its total investment in Vietnam to US$1.5 billion.

 

Also according to GSO, in 2012, Vietnam’s trade surplus totalled US$284 million. Key exports included telephones and components (accounting for 43 per cent of total exports), computers, electronic devices and spare parts (19 per cent). Obviously, the Vietnamese electronics industry is developing rapidly. This means the demand for machinery and technology is increasing due to the expansion of electronic industry.

Mr Martin Mansoor, President of the Association of Electronic Industries of Singapore (AEIS), stressed (AEIS), a non-profit organisation and only electronic industry association in Singapore, hopes to promote electronics industries in Vietnam. He said that Vietnam should focus on electronics and supporting industries to prop up industrial development. Moreover, AEIS members want to have more partners in Vietnam to have more opportunities to make inroads into the Vietnamese market. Singapore businesses also want to have opportunities to meet with Vietnamese partners to boost up cooperation between Vietnamese and Singaporean companies.

 

Mr Vitoon Jarusruchwanich, Sales Manager of My Thanh Co., Ltd- the supplier of laboratory service and equipment, said “Vietnamese industry is developing day after day and attracting many Japanese investors. This will be a very good year for the electronics industry to develop. So, we need to find an effective channel to create brand identity.”

 

Mr Ken Khor, Director of Hanshing Industries Sdn. Bhd, said "Vietnam is a centre of electronics industry. We are willing to become a supplier of parts and high-quality electric wires for Vietnam. Hanshing established production facilities in Vietnam to expand electric wire production in Vietnam, a step to boost our global presence. We provide high quality connectors for original equipment manufacturer (OEM) and resellers in electric, electronics and automation industries. In the current globalisation trend, we see Vietnam as a development centre for investment and trading electrical and electronic industries."

 

However, although Vietnamese machinery and technological products have relatively high growth rates, they lack sustainability and have low added value. Vietnamese enterprises mainly invest in new equipment rather than focus on comprehensive development also constituted by personnel and technology. In the coming time, they need to improve technological level, enhance competitiveness of enterprises, promote international cooperation, and change management manufacturing processes towards international standards, step up ICT applications to production and business operations (management, production, sales, etc.)