Illustrative photo.

According to the JETRO, Vietnam’s manufacturing currently ranks second in ASEAN, notably electronics.

Major electronic groups such as Intel, Panasonic and Microsoft have moved to Vietnam while domestic rivals continue winning new orders. Imports tripled from 2011 to 2016 while exports surged nearly five-fold from 12.8 billion USD to 65.8 billion USD in 2015.

Over the past years, exports of mobile phones accessories have greatly contributed to reducing Vietnam’s trade deficit. This year, Vietnam plans to earn more than 40 billion USD from electronics export.

Speaking at the event, Hironobu said Japan is interested in the Vietnamese market, evidenced by more than 570 projects in 2016. However, the rate of locally-made materials and spare parts is only 34 percent, forcing Japanese firms to import them from neighbouring countries like Thailand and China.

He suggested Vietnamese firms raise added values for spare parts so that they could catch up with Japanese partners in the global supply chain.

President of the Vietnam Electronic Industries Association Luu Hoang Long said Vietnam is gradually becoming a new manufacturing center with qualified workforce costing lower than Indonesia’s and only half of Thailand’s.

According to him, Vietnam’s electronic industry will still face challenges in the future.

India is Vietnam’s biggest rival in terms of foreign investment attraction due to its government and federal incentives, low salaries and high technology, he said.

The event was co-hosted by the JETRO and the Ministry of Industry and Trade’s Trade Promotion Agency.

Source: VNA