It is necessary for Vietnamese firms to work with FDI enterprises to establish value chains in the electronics industry. — Photo tapchicongthuong.vn HÀ NỘI — Enhancing the linkage between domestic and foreign-direct-investment (FDI) electronic enterprises can be an important solution to promote the development of this industry which is now dominated by the FDI sector. Việt Nam was now home to factories of a number of global technology giants such as Samsung, LG, Canon and Intel with investment sums worth billions of dollars. The country recently emerged as a top destination for FDI in the global production shift. Oppo was planning to build a plant in the northern province of Bắc Ninh while Lenovo was also studying the opportunity for a plant in Bắc Ninh or Bắc Giang. Although Apple has not announced plans to assemble iPhones in Việt Nam, many of their partners were increasing the production of components in the country. Foxconn invested in a project producing iPads and MacBooks worth US$270 million in Bắc Giang three months ago and planned to expand production in the country with a goal of reaching revenue of $40 billion in the next three to five years. According to Trần Thanh Hải, Deputy Director of the Import-Export Department under the Ministry of Industry and Trade, there was a significant change in the electronics industry in recent years that Việt Nam had original design manufacturers (ODMs). Still, the electronics industry of Việt Nam was still dominated by the FDI sector. Although Việt Nam was one among 12 of the largest electronics exporters in the world and top three in ASEAN, 95 per cent of the country’s electronics export came from FDI enterprises. Đỗ Thúy Hương from the Việt Nam Electronic Industries Association said it was necessary for Vietnamese firms to cooperate with FDI enterprise to establish value chains in the electronics industry. Three factors must be in place to be able to become suppliers of global technology giants …
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