A. Sector Overview

VIETNAM’S ELECTRONICS SECTOR GROWTH:

Export Value: Electronics is the largest export sector in Vietnam. In 2023, electronics and electrical equipment accounted for over $57 billion in exports, making up about 30% of total national exports. This includes a wide range of products from integrated circuits (ICs) to consumer electronics and electrical equipment.
Export Growth: In recent years, the sector has grown steadily. In 2022, Vietnam's electronics and electrical equipment exports grew by 9.7%, driven by strong demand from key markets like the US, Europe, and Japan.
Key Products: The majority of Vietnam’s electronic exports are smartphones, computers, electronic components, and semiconductors. These products are primarily shipped to Europe, the US, and ASEAN countries, with Europe being a significant recipient, especially in smartphones and integrated circuits.
Key Players: Notable manufacturers include Foxconn, Samsung Electronics, and LG Electronics, with major production hubs in Northern Vietnam, particularly in Bac Ninh, Bac Giang, and Hai Phong.

Vietnam’s Role in Global Supply Chain:

Vietnam is positioning itself as a key player in the global electronics supply chain, especially as companies seek alternatives to China for cost-effective and reliable production. The country has become a major hub for global electronics manufacturing due to its skilled labor force, competitive labor costs, and proximity to key Asian suppliers.

Vietnam's Consumer Electronics Exports:

Consumer Electronics Export Value: Vietnam's consumer electronics sector, including smartphones, televisions, computers, and home appliances, reached an estimated $12 billion in exports in 2023. The export of smartphones alone accounted for $22 billion in 2023, positioning Vietnam as a leading smartphone exporter globally, particularly to markets in Europe and Asia.
Key Drivers: The rise of smartphone production has been a major driver of export growth, with Samsung, LG, and Apple (via its supplier partners like Foxconn) having significant manufacturing operations in Vietnam. These companies export large volumes of smartphones, TVs, and related electronics to Europe.
Import-Export Trends: Consumer electronics exports to the EU have seen a marked increase in recent years. As per Vietnam’s General Department of Customs, the export of telecommunications equipment to Europe rose by 15% year-on-year in 2023.

Vietnam’s Competitive Advantage: