Southeast Asia Information Port News (www.dnyxxg.com) After more than a decade of rapid growth, Vietnam's electrical and electronic industry has entered a critical period of transformation, urgently needing to move from an "assembly-type production base" to deep integration into the global value chain.
Hidden Concerns Behind the Rise of the Electronics Manufacturing Base
Over the past decade, the electrical and electronic industry has become a core engine of Vietnam's economic growth, continuously attracting high-quality foreign direct investment and driving the growth of local enterprises. Samsung, for example, as Vietnam's largest foreign-invested enterprise, has cultivated more than 300 local suppliers. Cho Sang-jae, head of the Korea Trade-Investment Promotion Agency (KOTRA) Hanoi office, pointed out that the success of attracting investment in the electronics industry not only boosts exports but also signifies that the industry is gradually moving away from a simple assembly model.
Data Confirms Growth Strength: Vietnam's electronics exports reached approximately US$46 billion in 2015, increasing to US$126.5 billion in 2024, and approaching US$150 billion in the first 11 months of 2025, accounting for about one-third of the country's total exports, more than doubling compared to 2015. Currently, Vietnam has entered the top ten global electronics exporters, becoming a regional "strategic production base" for multinational corporations.
Behind these impressive figures, however, lie significant industry challenges: a fragmented supply chain and insufficient information integration across various stages; while exports reached nearly $150 billion in the first 11 months of 2025, imports of electronics surged 39.2% year-on-year to $136 billion; domestic enterprises are largely concentrated in low value-added segments, relying heavily on imports for key materials and core components; information barriers exist between domestic and foreign-invested enterprises, and regulatory authorities lack systematic data tools to identify "missing links" in the value chain.
Value Chain Mapping Offers Precise Solutions
To address these challenges, the Vietnam Trade Promotion Agency under the Ministry of Industry and Trade and KOTRA recently jointly released the "Vietnam Electrical and Electronic Industry Value Chain Map" and a corresponding "Business Matching Directory," providing a platform for investors and businesses to search and collaborate. Zhao Xiangzai stated that Vietnam is fully committed to building a modern electrical and electronic manufacturing ecosystem covering multiple sectors, including computers, home appliances, and auto parts.
Currently, the presence of large global corporations has laid the foundation for Vietnam's industries, but overseas SMEs remain hesitant due to a lack of understanding of local markets and supply chains. The release of the value chain map provides a comprehensive and transparent view of the industrial supply chain, clearly answering core questions investors have about company capacity and segment positioning. It also accurately identifies weak links in the value chain, priority areas for investment, and directions for local companies to participate. KOTRA emphasizes that this map is not only a database but also a strategic information infrastructure for enhancing industrial competitiveness, providing important references for relevant authorities to improve the supply chain and attract investment precisely.
Long-term development requires avoiding the "assembly trap"
Experts point out that Vietnam needs to promote the transformation of foreign investment into technology transfer and the development of local enterprises in the long term, avoiding the "assembly trap." Measures such as establishing joint R&D centers, encouraging cooperation between multinational and local companies, introducing policies to increase localization rates, and strengthening university-enterprise cooperation to cultivate technical talent can help build an innovation system and achieve sustainable and high-quality development of the electronics industry. (End)
