CATEGORIES

© Copyright 2004; Hanoitimes - Economic and Urban Newspaper;

The tribune of Hanoi People’s Committee

Publication Permit: 29/GP-CBC

Editor - in - Chief: Nguyen Thanh Loi

Managing Editor: Ta Thu Giang

Email : thugiang@hanoitimes.vn

Head Office: 21 Huynh Thuc Khang Street, Dong Da District, Hanoi

Branch Office: 221 Tran Phu Street, Ha Dong District, Hanoi

WORDS ON THE STREET 70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Trade - Service
Exporting smartphones reached new record of 45.1 billion USD
Ngoc Thuy 11:02, 2018/01/04
According to the General Statistics Office of Vietnam, smartphones and related accessories continue its status as main export products of Vietnam in 2017 with trade value of 45.1 billion USD - the all time highest number in a year.
The growth rate in export of these products has increased 31.4% compared to the same period of last year, contributing to 21% of total export value at 213.77 billion USD. Especially, smartphones have also contributed significantly to the reduction of trade deficit in 2017. With this being said, import value of smartphones and related accessories was 16.2 billion USD, equivalent to a trade surplus of 28.9 billion USD of this category. At present, smartphones and accessories from Vietnam have been exported to major markets such as European Union, China, United Arab Emirates (UAE), Korea, and the US.

Smartphones production at Samsung facility in Vietnam.
Smartphones production at Samsung facility in Vietnam
 
Smartphones is also the among the top 3 main export products of Vietnam. However, the export value of this product is 20 million USD higher than the second and third highest export value of Vietnam, namely textile & garment and electronic products, computers and accessories. 

At present, Vietnam is the 12th world’s largest electronics exporters and the third largest exporter in ASEAN. However, 95% of export value is coming from the Foreign Direct Investment (FDI) sector, while the domestic enterprises have not contributed much to this gain.

In 2016, total value of smartphones and related accessories for export was 34 billion USD, for which the FDI sector has contributed 90% of this above value. With this being said, the majority of domestic enterprises are still only take part in assembling, providing simple services and component, resulting in low added value, lacking competitive edge and unclear strategy for development. 

One of the reasons for this problem is that the majority of Vietnamese enterprises in electronics industry are small and medium enterprises (SMEs), which do not have sufficient financial capabilities to invest in modern production chain. In some case, the investment in this industry often do not yield profit in short term without the government support in production consumption, as well as in technologies investment. Comparing with FDI enterprises, domestics enterprises do not have the support from government with preferential treatment in land and tax. Besides, the import of accessories are facing difficulties in administrative procedures, especially in importing accessories to produce specialized products under 0% import tariffs.

In order for electronics industry to become the spearhead industry of the economy, Vietnamese enterprises have to improve their competitiveness to graps opportunities from the local market, as well as in international markets through FDI enterprises operating in Vietnam. However, for Vietnamese enterprises to cooperate with FDI sector, domestic enterprises have to improve their production chain and technologies, while the government should have policies to support these enterprises taking an advanced role in the supporting industries. 

As such, in the coming time, the Ministry of Industry & Trade will give more support for enterprises in enhancing technological capabilities to compete with foreign enterprises. At the same time, administrative agencies will create channels for enterprises to facilitate trade and investment, as well as to approach foreign enterprises. 
Comments
Other news
18:45, 2024/11/28
Vietnam, Hesse (Germany) promote high-tech cooperation
Bilateral trade between Vietnam and Hesse has reached around EUR1 billion (US$1.05 billion) annually, accounting for one-tenth of total trade between Vietnam and Germany.
15:34, 2024/11/27
Big discounts on offer at Hanoi's November Promotion Festival
The event is part of the Hanoi Concentrated Promotion Program 2024, held in May, July, and November, attracting up to 2,000 businesses.
17:23, 2024/11/26
Hanoi unveils 150 most popular Vietnamese products and services for 2024
The "Most Popular Vietnamese Products" voting program is part of the city's broader efforts to encourage the consumption of local goods.
16:50, 2024/11/23
Hanoi hosts the Vietnam Regional Specialties Fair 2024
This year's fair will contribute to the promotion of trade and the expansion of typical regional products, especially agricultural and food products that meet export standards.
14:06, 2024/11/20
Hanoi strengthens export competitiveness and trade protection measures
Hanoi will work with the Ministry of Industry and Trade to ensure that businesses and manufacturers are ready for new challenges.
10:49, 2024/11/16
US reiterates Vietnam is not manipulating currency
The US Treasury Department’s positive evaluation underscores Vietnam’s progress in balancing its economic and monetary policies while fostering strong bilateral relations with the US.