Behind the US $ 5.7 billion “giants” from the US, Korea and China poured into Vietnam’s electronic technology industry
According to the report Vietnam at a glance – Reclaiming the glory of victory recently published by HSBC, when it comes to Vietnam’s impressive development story, it is impossible not to mention the export-driven growth model. main. Within two decades, Vietnam has really successfully transformed itself, becoming the world’s rising manufacturing factory. Vietnam’s transformation process was accelerated at a time of trade tensions between the US and China, at which time, Vietnam’s exports witnessed a remarkable growth.
Vietnam becomes the second largest smartphone manufacturer in the world
With a starting point of just being an exporter of apparel and footwear with low added value, over time, Vietnam has demonstrated its ability to rise up in the supply chain, becoming an important manufacturing hub. in the technology sector (although the added value is still not high in the electronics sector).
Although Ho Chi Minh City (HCMC) and surrounding areas have had to go through four months of isolation, the technology supply chain in the North has not been affected much. Electronics exports hit a record $108 billion in 2021, equivalent to 32% of total exports. This index in 2000 reached less than 1 billion USD, equivalent to 5.5% of total export turnover.
Much of the success of Vietnam’s technology industry is due to Samsung’s many years of foreign direct investment (FDI), with an investment value poured into Vietnam over the past two decades, about $18 billion.
Now, Samsung has six factories and a research and development (R&D) center, including two phone factories in the North that supply half of Samsung’s phone production. As a result, Vietnam’s smartphone market share globally has increased significantly. Although mainland China still has the upper hand with 50% of the world’s smartphones manufactured in this country, Vietnam has captured 13% of the market share, quickly rising to the position of a smartphone exporter. second largest in the world.
Although the data for 2021 has not been released, looking at Samsung’s brilliant results, we can predict that Vietnam is likely to gain more market share in 2021. Samsung Vietnam recorded an increase revenue 14% in 2021, driven mainly by sales of foldable smartphones quadrupling in 2021. The total investment capital of technology giants poured into Vietnam from 2019 up to now has reached $5.7 billion.
Besides Samsung smartphones, what other strengths does Vietnam have? In the context that 70% of the world’s finished computers are made in China, Vietnam’s laptop market share in the world is also gradually increasing, surpassing Malaysia to become the main producer in the region. ASEAN.
Meanwhile, Vietnam has also emerged as a supplier of microprocessors/controllers (although products assembled in Vietnam are often lower value microprocessors used in many electronic products). This result is supported by Intel’s $1 billion investment in an assembly and testing facility in Vietnam since 2006.
During the period from June 2009 to December 2020, Intel poured another $475 million into its factory in Vietnam to increase production of 5G products and core processors. This expansion may explain why Vietnam’s processor export market share globally has doubled within a year, reaching 6% in 2020.
Domino effect
It is worth noting that the chain effect occurs when the success of Samsung and Intel leads to other giant technology corporations also speeding up the process of redirecting the supply chain to Vietnam. Although the pandemic has somewhat disrupted this process, the interest of FDI investors in the technology sector has remained strong thanks to stable macro factors, favorable FDI policies and effective FDI. labor cost results.
Not only familiar investors like Samsung continue to pour more investment capital, but even Apple-related suppliers have begun to set foot in Vietnam. The three Apple assemblers, Foxconn, Luxshare and Goertek, have announced major investment plans to increase capacity and increase the use of local workers.
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
