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HCM City’s electronics production industry sees significant growth

Update: November, 19/2018 - 07:00
The electronics production industry in HCM City has seen significant growth, according to the HCM City Department of Industry and Trade. VNA/VNS Photo
Viet Nam News

HCM CITY –  The production index of electronic goods for the first 10 months of the year increased by more than 17 per cent year-on-year, according to the HCM City Department of Industry and Trade.

The overall industrial production index (IIP) rose by 7.85 per cent.

The department attributed the growth to a stable consumption market and more investment in semiconductors, chip technology, and electronic boards.

Export turnover of computers, electronic products and components within the first 10 months reached $US7.94 billion, up 17.6 per cent year-on-year, accounting for more than 30 per cent of total export value excluding crude oil.

To compete with imports, enterprises in the field have invested in machinery and technology to produce products for supporting industries.

Despite positive results, Trần Quang Hà, deputy head of the Ministry of Industry and Trade’s Industry Department, said that the supply capacity of enterprises in supporting industries was still limited.

Supply chain

Of 200 suppliers for Samsung, only 35 Vietnamese enterprises are level-1 suppliers, while the rest are mostly foreign enterprises.

Vietnamese enterprises mostly supply packaging with simple details.

Similarly, of 40 suppliers for Panasonic Việt Nam, only three are solely Vietnamese enterprises whose supply orders account for less than 10 per cent of the total value of input components.

Lê Nguyễn Duy Oanh, deputy director of the city’s Centre for Supporting Industry Development, stressed the importance of encouraging supporting enterprises to be deeply involved in the supply chain of FDI enterprises.

The city has created investment stimulus programmes to help enterprises invest in modern machinery and equipment, expand production, and improve quality of products, among other benefits.

The city has also connected enterprises with banks to resolve capital access for the industrial sector in general and supporting industries in particular.

Enteprises in supporting industry have been encouraged to take part in courses that train labourers and enhance their competitive advantage in the market.

Châu Bá Long, general director of Minh Nguyên Corporation, said that participation in Sustaining Competitive and Responsible Enterprises (SCORE) and other programmes had equipped his enterprises with more skills and that the company had become a level-1 supplier to Samsung.

As a partner of Samsung, the corporation has seen its revenue increase by 12 times, he said. – VNS

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