Enhancing Vietnam's value is a strategic responsibility

Hoàng Lâm |

The Ministry of Industry and Trade gave a thought-provoking figure: "In 8 months, export turnover of computers, electronic products and components reached about 101 billion USD, an increase of 51%; imports reached 161.6 billion USD, an increase of 68.3%, and a trade deficit of 60.5 billion USD.

Exports of telephones and components reached about 45.6 billion USD, up 19%; imports 6.86 billion USD, down 1.7%, trade surplus of about 38 billion USD”.

Overall, Vietnam's electronic picture has two colors: On the one hand, strong growth in export scale; on the other hand, great dependence on external supply for many product groups.

It is undeniable that the above figures show that Vietnam is increasingly affirming its role in the global electronics manufacturing map. In particular, the export growth rate of computers, electronics and components up to 51% shows that the international market demand for electronic products is still very large, and also reflects Vietnam's increasingly deep participation in the technology supply chain.

However, the biggest problem today is revealed. That is the level of dependence on imported raw materials and components. In other words, Vietnam is very successful in its role as a production base, but has not really become a center to master technology and value chains.

Recently, on September 8, when working with the Vietnam Electronics Enterprises Association and a number of large import-export enterprises in the electronics and semiconductor industry, Politburo Member, Standing Deputy Prime Minister Pham Gia Tuc requested electronics and semiconductor enterprises, especially enterprises with large export turnover, to determine to increase added value, develop a domestic supplier system, gradually reduce dependence on imports as a strategic responsibility; develop specific plans for product, component, material and production stages.

Clearly, enhancing Vietnam's value in the supply chain is not only in the electronics industry group but also in improving self-reliance and resilience to global economic fluctuations, especially raw material supply.

This requires domestic enterprises to invest more strongly in production, research and development and focus on developing high-quality human resources.

From the State's side, it is necessary to strengthen mechanisms and policies, especially to improve policies for developing supporting industries, creating conditions for small and medium-sized enterprises to participate in the supply chain of large corporations. At the same time, create a "midwife" role in supporting technological innovation, developing research centers, shared laboratories and connecting domestic enterprises with FDI enterprises.

Export growth figures are positive signals, but the long-term goal cannot just be to continue increasing turnover. Vietnamese businesses master more technology, design, components and brands to increase Vietnam's value in the supply chain. That is the important measure to assess the competitiveness of the economy in the technology era.

Hoàng Lâm
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