Vietnamese tech firms expand cooperation for “Made in Vietnam” products

July, 06/2022 - 11:07
Vietnamese tech firms should expand cooperation in research and development (R&D) and technology transfer to be able to make electronics, information technology and telecommunications (ITC) products branded “Made in Vietnam”, experts said at a conference on Tuesday in HCM City. 

 

Speakers at a conference on the research, design and manufacture of electronic and ITC products “Make in Vietnam” on Tuesday in HCM City. VNA/VNS Photo 

HCM CITY — Vietnamese tech firms should expand cooperation in research and development (R&D) and technology transfer to be able to make electronics, information technology and telecommunications (ITC) products branded “Made in Vietnam”, experts said at a conference on Tuesday in HCM City. 

Speaking at a conference on the research, design and manufacture of electronic and ITC products “Made in Vietnam”, Hồ Quỳnh Hưng, chairman of the Board of Directors of Điện Quang Joint Stock Company, said that Việt Nam’s electronics and ITC industries remain dependent on imports due to a lack of high-tech production capability. 

The industries also lack design and R&D capacity, he added.

“This was evident during the Covid-19 pandemic when most businesses were affected by supply chain disruptions. Many of the businesses faced a lack of chips and electronic components for production of electronic and ITC products,” he said.

The number of Vietnamese companies making chips and electronic components for production of electronic and ITC products remains modest and most foreign companies open factories in Việt Nam to produce chips and electronic components, he added.

Nguyễn Ái Hữu, chairman of the Board of Directors of XeLex Technology Joint Stock Company, said most Vietnamese-branded products are made with imported components and assembled domestically with software and hardware which are dependent on foreign partners, resulting in a risk of installing malware without the businesses’ awareness.

“Vietnamese tech firms need to master both hardware and software technology to ensure security,” he said.

He added that Việt Nam’s ITC industry needs huge investment and high-quality human resources, especially experts and technicians with solid professional qualifications.

Experts said the continued relocation of the global supply chain and supply diversification is a great opportunity for Việt Nam to develop its electronics and ITC industries.

According to the Ministry of Information and Communications, the total revenue of the ITC industry in 2020 reached US$120 billion in 2020. Of that number, the hardware industry accounted for over $107 billion, the software industry over $5 billion and the digital industry over $900 million.

In the first six months of 2021, total revenue reached nearly $65 billion, up 22 per cent year-on-year, of which, revenue from the hardware and electronics industries reached about $57.6 billion, accounting for nearly 90 per cent of total revenue of the ICT industry. 

Exports of hardware and electronic products were estimated at $50.5 billion in the period, accounting for 31.6 per cent of the country’s total exports with a trade surplus of $7.7 billion. 

According to the Industrial Planning by 2030, the annual growth of the electronics industry was 17 – 18 per cent in the 2016 - 2020 period and would reach 19 - 21 per cent by 2030. 

At the event, Điện Quang and XeLex signed an agreement to research, design and produce electronics, ITC and 5G equipment “Made in Việt Nam”. 

Under the agreement, Điện Quang will provide components used to make tablets, laptops, servers and other products of electronics and ITC by XeLex.

The signing of the agreement is expected to open up opportunities for Việt Nam’s electronics and ITC industries.

Under the Government’s ‘Made in Vietnam’ strategy, Việt Nam aims to produce chipsets for the 5G network and Internet of Things (IoT) equipment. The Government will also offer preferential policies for the production as it is a high-tech area. 

Under the strategy, Việt Nam is also focused on the digital economy, which is expected to contribute 7 per cent to its GDP by 2025 and 7.5 per cent by 2030. 

The conference was organised by Điện Quang Joint Stock Company and XeLex Technology Joint Stock Company. — VNS 

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