Electronics industry put at disadvantage due to falling demand

The Vietnamese electronics industry is anticipated to continue being hit by the challenges brought about by the increasingly complicated hurdles caused by the COVID-19 epidemic during the second half of the year, with demand for products within markets in Europe and the United States set to be reduced

According to a report released by the Ministry of Industry and Trade (MoIT) on industrial and commercial production, the production index of electronics and computers during the last six months underwent a surge of 9.8% over the same period from last year, coming in higher than the increased level recorded during the same period last year at 3.5%.

Despite facing plenty of difficulties when attempting to import components from China at the beginning of the year, the reasonable balance of production and business activities has led to the local electronics industry enjoying strong growth in terms of industrial production index and export turnover throughout the reviewed period.

electronics industry put at disadvantage due to falling demand

The electronics industry is forecast to continue being hit by the impact of the novel coronavirus (COVID-19) epidemic in the second half of the year (Photo:CafeF)

Most notably, the first half of the year saw the export value of computers, electronic products and components increase by 24.2% to US$19.28 billion, whilst mobile phones and accessories witnessed a fall of 8.4% to US$21.5 billion.

With positive indicators of growth in production and exports, the MoIT continues to foresee a difficult situation for the domestic electronics industry ahead in the second half of the year as a result of the downturn caused by the global COVID-19 pandemic situation which will reduce the demand for electronic products in the US and European markets.

This can be seen as Samsung's global sales and output are forecast to endure a decline as a result of the general impact of the epidemic on the electronics industry as a whole. Indeed, Samsung Vietnam is also set to scale down its export target for the year to approximately US$45.5 billion in comparison with the 2019 level of US$51.38 billion.

The MoIT believes that the nation’s handling of the virus is greatly appreciated by the international community, acting as important motivation to attract greater foreign investment into the country post-COVID-19.

Elsewhere, transnational groups are considering making moves to shift their investments, presenting a great opportunity for the nation to attract this impending wave of capital. This also shows that major technology conglomerates remain poised to move their production chains to the nation, as can be seen by LG moving its entire production line from the Republic of Korea to Hai Phong.

According to Nikkei, the second quarter of the year will see Apple produce up to four million AirPods locally, equivalent to roughly one thirds of the total AirPods produced worldwide. Foxcon, a component supplier for Apple, has located its factory in Bac Giang whilst Panasonic Vietnam is also preparing to gradually move its production line from Thailand in order to produce refrigerators and washing machines at the beginning of September.

Enacting these activities is expected to serve as a driving force for the electronics industry to enjoy stronger growth in the near future.
Source: VOV
english.vov.vn

Related News

The supporting industry needs high-tech human resources

The supporting industry needs high-tech human resources

VCN - The trend of shifting supply chains is opening up many opportunities for the domestic supporting industry to develop; the problem of human resources is becoming more urgent so that businesses can improve production capacity and self-sufficiency competitiveness by meeting the increasing requirements of the value chain.
Semiconductor industry needs 50,000 high-quality workforce in next 10 years

Semiconductor industry needs 50,000 high-quality workforce in next 10 years

Vietnam's workforce demand in the semiconductor–microchip field is forecast to be around 20,000 engineers for the next five years, and 50,000 engineers in the next 10 years, according to economists from the Fullbright University.
Vietnam making new moves in multibillion-dollar semiconductor industry

Vietnam making new moves in multibillion-dollar semiconductor industry

Vietnam is making strong progress in advancing its standing in the global semiconductor supply chain as many of the world’s largest chip manufacturers have landed in the Southeast Asian nation, insiders said.
The market is shifting, forcing the industry to speed up to adapt

The market is shifting, forcing the industry to speed up to adapt

VCN - A series of new policies from the import market pose many challenges for domestic export businesses, in which textiles, furniture and household appliances are directly affected industries.

Latest News

Quảng Ninh posts fourth fastest growth in Red River Delta

Quảng Ninh posts fourth fastest growth in Red River Delta

The gross regional domestic product (GRDP) in the northern province of Quảng Ninh expanded at an estimated 9.02% year on year during the first half of 2024, ranking fourth in the Red River Delta and eighth nationwide.
New decree to set stage for innovative start-up economy

New decree to set stage for innovative start-up economy

The development of a separate decree on innovation and innovative start-ups is underway with an aim to leverage innovative start-up firms to a new height.
Early US recognition of market economy to increase opportunities for Vietnamese exports

Early US recognition of market economy to increase opportunities for Vietnamese exports

The US's recognition of the market economy in Vietnam will help expand business opportunities for Vietnamese enterprises and pave the way for Vietnamese exports to this market, according to experts.
Industrial production grew on a large scale

Industrial production grew on a large scale

VCN - 55 localities had an increase in the index of industrial production (IIP) compared to the same period last year, only 8 localities had a decrease in IIP compared to the same period last year.

More News

More export opportunities from the Chinese market

More export opportunities from the Chinese market

VCN – Besides 12 fruit and vegetable items; bird's nest, fish meal and some products for the production and processing of animal feed, dairy and seafood products that have been officially exported to China, fresh coconuts, frozen durian, crocodiles, poultry... are expected be officially exported to the Chinese market in the near future.
Việt Nam

Việt Nam's cinnamon exports hits over $96.3 million in five months

Farmers have been continuously working on new techniques to improve the quality and productivity of cinnamon trees.
Việt Nam facilitates the establishment of free trade zones

Việt Nam facilitates the establishment of free trade zones

Earlier, the State has proposed allowing Đà Nẵng City to pilot the establishment of a Đà Nẵng Free Trade Zone connected to the Liên Chiều Seaport. The goal is to implement experimental policies and mechanisms to attract investment to the area.
Digital technology promotes green transformation at businesses

Digital technology promotes green transformation at businesses

VCN - Under pressure from the market, green and digital transformation are placing considerable pressure on businesses. This is also a hot topic discussed and analyzed at the International Forum on Creative Business - IIBF 2024, which just opened on the morning of June 12 in Ho Chi Minh City.
Vietnam’s fishery export likely to reach 4.4 billion USD in H1

Vietnam’s fishery export likely to reach 4.4 billion USD in H1

Vietnam’s export of fishery products is expected to reach 4.4 billion USD during January-June, a year-on-year increase of 6%, despite such formidable challenges as extreme weather conditions and competitive pressure regarding export prices, high input costs and shortage of materials, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Shifts in investment flows for export-oriented industries

Shifts in investment flows for export-oriented industries

The country's textile, garment and footwear industries have long relied on imported raw materials, causing a current trend of foreign enterprises shifting industries to other countries, said insiders.
Intensive processing enhances spice export value: insiders

Intensive processing enhances spice export value: insiders

A world leading spice exporter with a revenue of some 1.5 billion USD every year, Vietnam should bolster intensive processing and trade promotion to increase added values, experts have said.
Supporting industries needs a push to grow: Insiders

Supporting industries needs a push to grow: Insiders

As the development of supporting industries of Vietnam has yet to match their potential, the sector needs a push to clinch a position in the domestic market and rise to the world, according to insiders.
Greening creates competitive and sustainable advantages for enterprises

Greening creates competitive and sustainable advantages for enterprises

VCN - The gradual greening of production, green factories, green technology, clean materials, green energy, etc., has become an inevitable trend and creates competitive and sustainable advantages for enterprises in the face of difficulties and challenges.
Read More

Your care

Latest Most read
Quảng Ninh posts fourth fastest growth in Red River Delta

Quảng Ninh posts fourth fastest growth in Red River Delta

The gross regional domestic product (GRDP) in the northern province of Quảng Ninh expanded at an estimated 9.02% year on year during the first half of 2024, ranking fourth in the Red River Delta and eighth nationwide.
New decree to set stage for innovative start-up economy

New decree to set stage for innovative start-up economy

The development of a separate decree on innovation and innovative start-ups is underway with an aim to leverage innovative start-up firms to a new height.
Early US recognition of market economy to increase opportunities for Vietnamese exports

Early US recognition of market economy to increase opportunities for Vietnamese exports

The US's recognition of the market economy in Vietnam will help expand business opportunities for Vietnamese enterprises and pave the way for Vietnamese exports to this market, according to experts.
Industrial production grew on a large scale

Industrial production grew on a large scale

VCN - Assessing the industrial production situation in the first five months of the year, the Ministry of Industry and Trade said that IIP is estimated to increase by 6.8 percent compared to the same period last year (the same period in 2023 decreased by
More export opportunities from the Chinese market

More export opportunities from the Chinese market

VCN - Notably, at a recent meeting between representatives of the Ministry of Agriculture and Rural Development (Vietnam) and the General Administration of Customs China (GACC), the two sides agreed on cooperation in trade and opening the market for agric
Mobile Version