Vietnam’s electronics industry has been growing fast in recent years, reflected by the increasing number of investment from high-tech electronics producers such as Intel, LG, Panasonic and Microsoft, Samsung and Apple. Answer this investment’s trend, there is a playground for Vietnam’s electronic manufacturer to connect and share experiences at NEPCON Vietnam 2016 which will be held from 6-8 October at SECC, Ho Chi Minh City.
Vietnam was one of the fastest growing economies in Asia in 2015 and manufacturing has been judged to be the key driver. Much of the improvement in the sector can be attributed to electronics. Over the years, many foreign electronics giants have increased their investments in Vietnam. High-tech electronics producers such as Intel, LG, Panasonic and Microsoft are establishing a presence in Vietnam, being among the global tech giants to have expanded in the country.
With the position as a largest FDI recently in Vietnam, the expansion of Samsung in both Northern (BacNinh, Thai Nguyen) and Southern area (Ho Chi Minh city) also marked up its long-term business plan in this country. A unit of Samsung Electronics earlier this year announced to expand its existing 1.4 billion USD toSamsung Electronics Ho Chi Minh City Complex (SEHC) by more than $600 million, increasing the complex’s total investment capital to over 2 billion USD, making Vietnam become a production base for TV and consumer electronics devices. However, Samsung is in the final stages of building an R&D center in Hanoi for 300 million USD.
One more exciting signal from the world's leading mobile phone manufacturer Apple Inc. invested 15 billion VND (673,000 USD) to establish its wholly-owned subsidiary, Apple Vietnam LLC, in HCM City last October, according to Reuters. The US technology giant hinted at its increasing interest in the Vietnamese market when earlier this year they announced to invest a data centre in Vietnam, according to Vietnam News Agency (VNA).
Going along with this investment flow, the expected new development for high-tech electronics industry in Vietnam is opened.However, Vietnam's electronic industry is still facing challenges in its development. Although the sector's export value is high, 90% was recorded by the foreign direct investment (FDI) sector while only the remaining 10% by domestic companies. At the same time, the number of FDI enterprises represents only one-third of electronic enterprises in Vietnam.
“To improve the domestic value added and ultimately the country’s GDP in the electronics industry, there is a need to boost Vietnam’s supporting industries for the above-mentioned FDI manufacturers. This is one of the necessary measures and beneficial to both the finished product manufacturers and the component suppliers in Vietnam”, said M.P.P. Do Thi Thuy Huong, Executive Board Member of Vietnam Electronic Industries Association (VEIA).
Ms. Kasinee Phantteeranurak, Project Manager of Reed Tradex Co., Ltd,shared: “The influx of foreign electronics manufacturers to Vietnam has enabled the transfer of technology and skills. More than ever, it’s time for the country to develop its own ability and production base to sustain the trend.Accompany with Vietnam’s market for 9 years, NEPCON Vietnam will continue playing its role as a business matching platform and back to Ho Chi Minh City this year to answer for the increasing demands in the market, especially in Southern area. Along with eventful investment in Northern likes Panasonic in Hanoi, Samsung in BacNinh&Thai Nguyen, LG in Hai Phong, Brother in Hai Duong; there are positive signals whichis expanding in Southern, in which there are the expansion of the project SEHCby Samsung or new investment by Intel in Ho Chi Minh City, including to Panasonic with 3.95 billion USD investment in building an electronics and electric component production plant in southern Binh Duong province.”
NEPCON Vietnam will be organized from 6-8 October, 2016 at Saigon Exhibition & Convention Center (SECC). This exhibition focuses to display the “right-time served technology” in SMT, testing technologies, equipment, and supporting industries for electronics manufacturing. NEPCON Vietnam promises to be the bridge connecting the need of support companies and technology providers. Exhibitors will get the opportunity to present technology, machines and solutions to over 10,000 visitors looking to improve their SMT lines, and together strengthening Vietnam’s electronic manufacturing for the upcoming opportunities and challenges.
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