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Electronics exports forecast to be robust this year

The electronics industry is forecast to have a robust year, driven by the increase in demand for communications’ products due to demand caused by social distancing measures implemented to tackled rising cases of COVID-19, according to the Ministry of Industry and Trade.

The Ministry of Industry and Trade said that as the COVID-19 pandemic has developed exports of many products saw significant drops although some key industrial products saw considerable increases in the first seven months of this year.

Statistics showed that the export of phones and components brought in 29.35 billion USD from January – July, up 11.9 percent against the same period last year. More than 128 million mobile phones were produced in the period, up by 14.1 percent.

That Vietnam’s phones and components exports kept growing was a good sign, signalling a year of strong growth for the electronics industry, which would contribute significantly to the country’s economic recovery and to achieving growth targets, the ministry said.

Phones and components were the top export products of Vietnam, which account for 15.8 percent of the country’s total export revenue in the first seven months of this year, followed by electronic products, computers, and components with an export value of 27.4 billion USD.

The ministry said that the electronics industry would continue to grow in the remaining months of this year, driven by the increase in demand for communication products. A number of companies that produce computer and electronics products in other countries had been forced to close down due to the impacts of the virus.

The ministry predicted that the export value of computers, electronic components and other products of Vietnam would hit 50 billion USD this year, representing a rise of 13.5 percent against 2020.

Nguyen Thi Thu Thuy, Deputy Director of the Trade Promotion Agency’s Export Promotion Centre, said that the Vietnamese economy continued to see significant changes in the structure of export products. From a country with agricultural products and labour-intensive products being the main exports, Vietnam was gradually transitioning to producing more high-tech export products with higher added value such as electronics and electronic components.

The ministry said that Vietnam’s electronics products were exported to more than 100 countries including China, ASEAN, Japan and the Republic of Korea and were expanding their presence in EU markets.

In the first quarter of this year, Vietnam granted licences for capital increases for a number of electronic products, including the Republic of Korea’s LG Display Hai Phong and Singapore’s Fukang Technology.

VNA