Computer, electronic product exports could soon reach US$60 billion

Exports of computers, electronic products and components hit US$50.82 billion last year, putting it in second position in the group of key export products.

Statistics of the General Department of Customs showed that the export turnover of this group of goods grew 14.05% year-on-year, equivalent to an increase of US$6.25 billion, accounting for over 15% of the total export turnover of goods of the country.

This export result exceeded the forecast made by the Ministry of Industry and Trade in the third quarter of last year, when it said that computers, components and electronic products could reach about US$50 billion, a year-on-year increase of 13.5%.

As the transport of goods to major markets faces many difficulties, the export turnover of computers, electronic products and components still grew in most key markets.

The US market is leading the import turnover of this group of goods from Vietnam, accounting for 25% of the export proportion. Exports to China reached nearly US$11.1 billion, although only increasing by less than 1%, this still accounted for 21.83% of the total export turnover of the whole industry.

The third largest market is Hong Kong, which grew by 50%, bringing turnover to US$6.3 billion, the EU ranked fourth with US$5.9 billion, up 2.59%, and the Republic of Korea ranked fifth, reaching US$3.49 billion, up nearly 22%.

Four other markets with export turnover from over US$1 billion to approximately US$2 billion, respectively, are the Netherlands with US$1.8 billion, up 5.2%; Mexico with US$1.35 billion, up 17.4%; Poland with US$1.14 billion, up 14.9% and Slovakia with US$1.04 billion, up 27.7%.

In addition, there are a series of markets with import turnover of nearly US$1 billion, including Japan (US$996 million), Taiwan (US$938 million), Singapore (US$924 million), and India (US$828 million).

The electronics industry grew strongly due to the demand for consumer goods for communication as well as means of work in the context of social distancing due to the impact of COVID-19 over the last two years.

This industry has made good use of the opportunity to accelerate exports during the pandemic. The Ministry of Industry and Trade said that the production of computers and electronic components in Vietnam is mainly dominated by foreign companies, especially multinational companies.

Although the number of foreign-invested enterprises (FDI) is only a third of the total number of electronic enterprises in Vietnam, the export proportion of these enterprises has accounted for more than 90% of total export turnover and covers 80% of domestic market demand from 2016 to 2021.

In Vietnam, the electronics industry has enjoyed high export growth, thanks in large part to the presence of multinational technology groups leading global value chains and shifting orders out of China.

The electronics manufacturing industry still has a positive outlook when the investment shift of transnational corporations opens up great opportunities for Vietnam. For example, LG has moved its entire production line to Hai Phong, Apple has moved iPad and MacBook production lines from China to Vietnam, and Panasonic has stopped producing washing machines and refrigerators in Thailand to consolidate equipment assembly in Vietnam.

With an increasingly important position in the global supply chain, Vietnam continues to be an important order address for large corporations and enterprises.

Accordingly, the export turnover of computers, electronic products and components is forecast to continue to grow strongly this year and the export milestone of US$60 billion is not out of reach.

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Mobile phones, electronic products - largest foreign currency earners
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Mobile phones and components, computers, electronic products and spare parts are the two largest foreign currency earners of the country, according to the General Department of Vietnam Customs.

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Mobile phones, electronic products - largest foreign currency earners

Mobile phones and components, computers, electronic products and spare parts are the two largest foreign currency earners of the country, according to the General Department of Vietnam Customs.