The significant move towards electronics is the main factor behind the continued growth in exports from Vietnam. Over recent years electronic goods, in particular, mobile phones and applications have taken over the top spot previously occupied by textiles helping ensure a continued future growth in exports.
Samsung electronics have been leading the charge having invested close to US$ 10 billion so far in Vietnam and Samsung group registering investment of US$ 17 billion[1]
Vietnam’s total exports are expected to exceed US$ 200 billion for the first time, this year compared to US$ 175 billion last year[2]. FocusEconomics has forecast that exports from Vietnam will continue to grow over US$ 300 billion by 2021.
Samsung are expected to achieve exports of US$ 50 billion this year, which will amount to almost 25% of total exports. Vietnam expects that foreign electronics manufacturers will continue to dominate Vietnam’s exports with manufacturers like Samsung, LG and Intel.[3]
According to Electronics.ca Publications Vietnam is seen as becoming a major global exporter in the electronics sector and it is on the radar of many foreign electronics firms with plans to implement major projects in Vietnam.
Such investments will be facilitated by the Governments drive to reduce bureaucracy and removal of over 2,000 licenses, registrations and other procedures.
This all augers well for continued growth in GDP and also should help develop local component manufacturers’ and further increasing employment and the emerging middle class.
[1] Vietnam Investment Review February 2014.
[2] Vietnam Ministry of Industry and Trade.
[3] Do Thang Hai Deputy Minister MOIT
