Vietnam’s electronics industry is still growing despite the impact of the COVID-19 pandemic, said an article published on newswire entrepreneur.com on August 19.
The article noted in recent years, the country has implemented some trade agreements with other countries and flexible policies to attract foreign investors and this would open opportunities for entrepreneurs as the industry plays an important role in Vietnam’s economy.
It was estimated Vietnam is one of the key electronics exporters ranking 12th place in the world, the author wrote, adding that there has been a steady increase in the nation’s exports with an average of 12 billion USD per year. The import of electronic products has nearly doubled between 2015 and 2019. Vietnam’s electronics industry is diverse.
The article also mentioned advantages the market offers investors. It said the Regional Comprehensive Economic Partnership will help lower tariffs on trade.
In addition, Vietnam has signed a free trade agreement with the EU, which will gradually reduce most tariffs, regulatory barriers, and red tape which should create opportunities for both sides to do business. The Vietnamese government will provide incentive scheme implementing a 30 percent corporate income tax (CIT) cut for certain business and companies working in the high-tech sector as well as in high-tech and specific industrial zones, and underdeveloped socio-economic regions.
According to the article, a new wave of the COVID-19 pandemic in Vietnam has resulted in lockdowns, restrictions and disruption to supply chains, and businesses shutdown. Despite such negative impact, plenty of foreign investors have chosen Vietnam as a top destination to set up their electronics production bases.