The Vietnamese electronics industry is expected to earn $ 4-6 Billion by 2010 by increasing export, manufacturing lucrative products and reducing cost.
Nguyen Tan Dung, Prime Minister, Vietnam, has encouraged the master plan to give boost to country’s electronic industry aiming to earn revenue between US$ 4 and US$ 6 Billion by 2010 of which US$ 3 - $ 5 Billion will come from export, as reported by VietnamNews.
Vietnam Electronics Industries Association (VEIA) also disclosed that the electronics industry is poised to earn revenue $3 Billion from total export turnover this year. This will be a rise of 22.7% against $ 2.2 Billion in 2007 and 95% of products for export manufactured by foreign-invested companies. Moreover, the Vietnamese electronics industry will create 300,000 jobs in the country as it is projecting an annual growth of 20-30% in 2010.
The high growth projection in Vietnamese electronics industry is mainly accredited to shift in Vietnam’s focus on manufacturing more lucrative electronics products including components, spare parts and finished products used in fields such as telecommunications, informatics, measurement and automation and medical equipments. As a result, the quality of Vietnamese electronics products will improve along with their demand in the international and domestic market.
Also, the household electronics segment will also give a competitive edge to the Vietnamese electronics industry by significantly cutting the manufacturing cost that will bring down the sale prices. Consequently, customers will increasingly buy electronics products. Rising domestic demand due to improvement in education level and increase in individual income giving support to the electronics products industry.
Moreover, Vietnam has made some large-scale projects after getting the membership of the WTO (World Trade Organization). Some of these include investment by foreign electronics companies like Foxxcon, Nidec and Intel to boost the electronics industry export. Several companies that coordinate with foreign firms for manufacturing products under outsourcing contracts are working to improve their products by designing own new models and are increasing production of components and spare parts for export.
According to a Research Analyst at RNCOS, “The Vietnamese electronic industry is growing at a rapid pace owing to high quality products at affordable price rate. The rising electronics products export is also giving a strong support to the industry and creating more growth opportunities. Hence, the Vietnamese government has to come forward with new plans of cooperation with other countries so that the demand for electronics products remains intact.”
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