Vietnam's Electronics Industry: The Rise and Problems of Further Development

Abstract

Purpose: To evaluate the Vietnamese electronics industry (EI) by analyzing its successes and shortcomings in recent years in comparison with other Southeast Asian countries, as well as the problems faced by the young industries in Vietnam in the course of its development and identify their abilities to participate in the global value chain.
 Methodology: Systems approach was used to analyze the status of Vietnam’s EI. The advantages and the results achieved by EI are assessed and described with the help of objective data from statistical and officially published sources.
 Main Findings: The position of Vietnam’s EI in the context of growing industry 4.0 was recognized. Its dependence on imports and other reasons that affect its efficiency and competitiveness were identified in the study. The Government should provide adequate support for the development of priority area including EI within the framework of national policies and encourage import substitution program of the industrial enterprises.
 Applications: Research results could be used for providing recommendations for making Vietnam's electronic industry development policy and import substitution program in the future.
 Novelty/ Originality: Study considered the effects of inconsistent structure, import dependence of production, lack of unified government control, quality of labor, etc. in gross output and export revenue.

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Combining Export- and Domestic Demand-Led Growth Hypotheses: Key Sustainable Development Amidst Global Dynamics

“…In addition, export production efficiency is low because: (i) most enterprises involved in export processing, including both domestic enterprises and FIEs, are capital and labor intensive and inclined toward outsourcing and assembling final products; (ii) the supporting industry is underdeveloped, resulting in very few domestic suppliers; and (iii) the "transfer pricing" tactics of transnational companies to reduce tax payable to gain high profits by increasing the price of equipment, technology, and raw materials imported from their subsidiaries [53,52]. Thus, the direct contribution of exports to GDP is still very modest, and this does not contradict similar conclusions in the study of Sahoo & Kumar [54].…”

Development focus of electronics industry in Russia: Shift from defense sector to market

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