Customs statistics show that mobile phone and spare-parts exports had previously reached US$300-400 million a month but since July last year they have risen strongly to $1.3 billion a month and have held second spot in export value since last September.

Exports of computers, electronics items and spare parts stood at $1.8 billion from January 1 to April 15, an increase of 79.2 per cent over the same period last year.

This record was attributed to the exports of Korean giant Samsung's Vietnam division which last year accounted for more than 70 per cent of mobile phone exports, worth $6 billion, and this year reached about $1 billion a month. With such export growth, Samsung Vietnam's export value could reach between $11-12 billion this year, said deputy minister of Industry and Trade Nguyen Thanh Bien.

Vietnam Electronics and Informatics Corporation chairman Le Ngoc Son told Saigon Times online that domestic exports of the electronics sector were increasing rapidly. Samsung had taken the advantage with its mobile phones while Intel, Canon, Compal and Foxconn had also made a considerable contribution to the country's exports.

Meanwhile, exports from domestic businesses remained modest. They were mainly hired to assemble for foreign partners from Japan, Korea, Singapore, Malaysia, Taiwan and other Asean countries.

Son said the number of Vietnamese electronics businesses was large but they had failed to compete with foreign partners due to limited finance and technology. Foreign companies held 80 per cent of the local electronics market share and made up 95 per cent of the export value.

Most Vietnamese enterprises were involved in buying parts and assembling products, such as televisions, karaoke equipment and refrigerators, for local consumption. In the domestic market however, locally made products were mainly consumed in remote areas because they failed to compete with products of foreign firms in cities.

In addition, local firms in the electronics industry were shifting to develop LED, solar or wind power products while seeking new business opportunities.

The Government has planned to manufacture healthcare equipment and specialized electronic products that will generate opportunities for a number of companies in this area.

Vietnam now has nearly 500 (local and foreign) enterprises operating in the electronics industry.

Last month, Nokia began construction of a plant in Bac Ninh Province to cost 200 million euros (US$264 million).

Source: VNS