Electronics export bounces back impressively
Electronics export has witnessed vigorous recovery, posting double-digit growth over seven and a half months and expected to hit US$130 - 132 billion in 2024.
As of August 15, Vietnam recorded US$244.41 billion in total overseas shipments, rising 16% year on year. The revenue includes US$77.4 billion from electronics exports, up 20%, helping this industry maintain its status as a leading foreign currency earner.
In particular, computers, computer devices, electronic products, and components brought home US$42.59 billion while phones and components US$33.8 billion, respectively increasing 30% and 11% from a year earlier, statistics show.
Do Thi Thuy Duong, member of the executive committee of the Vietnam Electronic Industries Association, said electronics export became stagnant last year with a turnover of about US$110 billion due to impacts of global economic recession and the shortage of orders, but the situation has improved in 2024.
As electronic products and components make up an increasing proportion of total exports, their performance considerably affects overall export growth. During 2011 -2023, they posted an average growth rate of 23.8%.
This result is attributed to foreign invested businesses. Up to 99% of the industry’s total exports come from those firms, including large investors like Samsung, LG, Intel, and Apple.
Big investments from electronic giants have helped rapidly expand Vietnam’s smartphone market share globally to 13%, the second largest after China.
In its Investment Outlook for the second half of 2024, HSBC forecast Vietnam’s economic growth will remain on the recovery track in H2, driven by the global electronics cycle.
Signs of manufacturing and export recovery are being sustained as seen in the spending of foreign currencies on importing machinery, equipment, and some key commodities to serve export.
Electronics imports reached US$64.15 billion as of August 15, rising nearly 29% year on year, according to the General Department of Vietnam Customs.
The country’s manufacturing industries have bounced back since the mid-year thanks to a surge in new orders.
The increased import of computers, electronic devices, and components is an indicator of abundant export orders, the Ministry of Industry and Trade explained.
If monthly exports are kept at US$11.5 billion, overseas shipments of electronics are believed to yield US$51.8 - 52.5 billion during the remaining months to raise this year’s figure to US$130 billion and even higher.
