Speaking at a conference on the research, design and manufacture of electronic and ITC products “Made in Vietnam”, Ho Quynh Hung, chairman of the board of Dien Quang Joint Stock Co, said that Vietnam’s electronics and ITC industries remained dependent on imports due to lack of high-tech production capability.
The industries also lack design and R&D capacity, he added.
“This was evident during the Covid-19 pandemic when most businesses were affected by supply chain disruptions. Many of the businesses faced a lack of chips and electronic components for production of electronic and ITC products,” he said.
The number of Vietnamese companies making chips and electronic components for production of electronic and ITC products remains modest and more foreign companies are opening factories in Vietnam to produce chips and electronic components, he added.
Nguyen Ai Huu, chairman of XeLex Technology Joint Stock Co, said most Vietnamese-branded products are made with imported components and assembled domestically with software and hardware that are dependent on foreign partners, resulting in a risk of installing malware without the businesses’ awareness.
“Vietnamese tech firms need to master both hardware and software technology to ensure security,” he said.
He added that Vietnam’s ITC industry needs huge investment and high-quality human resources, especially experts and technicians with solid professional qualifications.
Experts said the continued relocation of the global supply chain and supply diversification is a great opportunity for Vietnam to develop its electronics and ITC industries.
According to the Ministry of Information and Communications, the total revenue of the ITC industry in 2020 reached US$120 billion (432 billion baht) in 2020. Of that number, the hardware industry accounted for over $107 billion, the software industry over $5 billion and the digital industry over $900 million.
In the first six months of 2021, total revenue reached nearly $65 billion, up 22 per cent year on year, of which, revenue from the hardware and electronics industries reached about $57.6 billion, accounting for nearly 90 per cent of total revenue of the ICT industry.
Exports of hardware and electronic products were estimated at $50.5 billion in the period, accounting for 31.6 per cent of the country’s total exports with a trade surplus of $7.7 billion.
According to the Industrial Planning department, by 2030 the annual growth of the electronics industry would reach 19-21 per cent, from 17-18 per cent in 2016-2020.
At the event, Dien Quang and XeLex signed an agreement to research, design and produce electronics, ITC and 5G equipment “Made in Vietnam”.
Under the agreement, Dien Quang will provide components used to make tablets, laptops, servers and other products of electronics and ITC by XeLex.
The signing of the agreement is expected to open up opportunities for Vietnam’s electronics and ITC industries.
Under the government’s "Made in Vietnam" strategy, Vietnam aims to produce chipsets for the 5G network and Internet of Things equipment. The government will also offer preferential policies for the production, as it is a high-tech area.
Under the strategy, Vietnam is also focused on the digital economy, which is expected to contribute 7 per cent to its GDP by 2025 and 7.5 per cent by 2030.
The conference was organised by Dien Quang and XeLex Technology.
Viet Nam News
Asia News Network
Published : July 06, 2022
By : Vietnam News