Vietnam Electronic Industry – Research Report

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I. Overview of computers, electronic components manufacturing, consumption and manufacturing technology in Vietnam

1. Production and consumption

*Production: In March 2020, production of computers and electronic components of domestic enterprises continued to show an upward trend compared to the previous month. According to the General Statistics Office, the product with the highest production of the month was electrical equipment for telephone, telegraph and electronic information systems with 41.8 million units, a rise of 23.90%; production of television camera lens; image converter and image enhancer; other photovoltaic anode tubes reached 19.5 thousand units, an increase of 13.59% … The index production of electronic products, computers and optical products increased by 23.7% compared to previous month, increased by 17.5% compared to March 2019.

* Tiêu thụ: Tháng 02/2020 tiêu thụ sản phẩm điện tử của Vietnamchủ yếu theo xu thế giảm so với tháng 01/2020,  sản phẩm được tiêu thụ nhiều nhất trong tháng là Thiết bị điện dùng cho hệ thống đường dây điện thoại, điện báo và hệ thống thông tin điện tử, giảm 1,99%; theo sau là Óng camera truyền hình; bộ chuyển đổi hình ảnh và bộ tăng cường hình ảnh; ống đèn âm cực quang điện khác, giảm 21,05%; Loa đã hoặc chưa lắp vào hộp loa đứng thứ 3 về tiêu thụ nhưng chỉ tăng 1,12%%…

*Consumption: In February 2020, there was a downward trend in the consumption of electronic products in Vietnam compared to January 2020. The most consumed product in the month was electrical equipments for power transmission lines. telephone, telegraph and electronic information systems with a decline of 1.99%; followed by TV camera lens; image converter and image enhancer; other photovoltaic cathode lamp tube fell by 21.05%; the consumption of speakers installed or not in the box ranked the 3rd largest but only increased by 1.12 %% …

 

Table 1: The production index of electronic products, computers and optical products

Industries Mar 2020
compared to previous month (%)
Mar 2020
compared to Feb
2019 (%)
3 months in 2020
compared to 3 months in 2019 (%)
Manufacturing electronic products, computers and optical products 123,7 117,5 114,3
Manufacturing electronic components 103,6 112,3 113,7
Manufacturing communication equipments 128,5 119,8 115,1
Manufacturing consumer electronic products 121,3 107,7 99,2

(Source: The General Statistics Office)

Table 2: Production quantity of computers, electronic components in March and 3 months in 2020S

Products Unit of measurement Mar 2020 Compared to Feb 2020 (%) Compared to Mar 2019 (%) 3 months in 2020 Compared to  3 months in 2019 (%)
Electrical equipments used for telephone lines, telegraph lines and electronic information systems Million Dong 41.829.465 23,90 76,67 110.518.421 35,46
Television Camera lenses; image signal converter and image quality enhancer; Photocathode lamps Pcs 19.533.759 13,59 -10,91 60.189.638 -14,29
Speakers with or without speaker box Pcs 18.875.215 -9,20 6,77 57.423.709 25,70
Electronic component manufacturing service Million Dong 9.727.793 3,75 16,44 27.320.995 21,04
Headsets without microphone Pcs 4.451.360 0,05 -28,55 14.415.923 -26,39
Television sets Pcs 1.497.724 38,28 21,52 3.535.248 -0,43
Uncategorized circuit protective devices for voltage not exceeding 1000 V Pcs 1.076.987 1,33 13,71 3.215.575 14,45
Electronic displays (except the type used for automatic data processing machines) Pcs 1.191.552 40,49 23,02 3.053.304 20,77
Uncategorized parts for electronic components Kg 919.332 5,27 7,38 2.681.058 6,89
Uninterruptible Power Supply used for automatic data processing machines, their auxiliary machines and telecommunication equipments Pcs 788.719 -1,53 10,15 2.377.445 32,87
Manufacturing electric wires and cables service Million Dong 943.355 21,36 -2,45 2.336.632 -9,02
Tablets below 3 milion dong Pcs 989.109 102,99 0,64 2.240.877 -21,60
Intergrated circuits 1000 Pcs 721.970 -1,06 18,16 2.140.801 22,89
Tablets from3 to under 6 million dong Pcs 319.381 117,41 -10,92 677.649 -18,68
Office offset printers Pcs 125.450 25,74 -16,99 320.433 -16,31
Tablets from 6 to under 10 million dong Pcs 93.577 0,59 244,73 275.841 -3,41
Batteries 1000 Pcs 30.356 -0,30 -13,83 87.385 -10,25
Copper single strand insulated electric wire Ton 25.272 -2,50 8,18 77.788 9,53
Electric cables for voltages ≤ 1000V Ton 13.698 1,25 0,84 38.570 4,56
Other copper electric cables and wires Ton 10.742 3,64 0,69 31.491 -0,77
Printer parts using components such as dies, rollers, and other printing parts, except Office offset printers Ton 1.244 4,30 -8,73 3.488 -0,16
Parts of computers, cash registers, postage-free stamp machines, ticket machines and other similar machines with calculating capabilities (except vending machines, ATMs …) Ton 120 10,25 -11,57 326 -16,36
electric or electronic lamps, light bulbs, vacuum or flash lamps with a glass enclosure; machines for manufacturing hot glass or glassware Ton 32 9,59 99
Lead-acid battery to start the piston generator 1000 Kwh 22 19,79 -30,95 56 -14,83

(Source: Data compiled of Preliminary statistical data of the General Statistics Office and Statistics Offices.)

 

Table 3: Consumption of computers and electronic components

Feb 2020 and first 2 months in 2020

Products Unit of measurement Feb 2020 Compared to Jan 2020 (%) Compared to Feb 2019 (%) 2 months in 2020 Compared to  2 months in 2019 (%)
Electrical equipments used for telephone lines, telegraph lines and electronic information systems Million Dong 37.113.334 -1,99 65,38 74.979.773 42,55
Televition camera lenses; image signal converter and image quality enhancer; Photocathode lamps Pcs 17.082.486 -21,05 -19,50 38.718.308 -17,71
Speakers with or without speaker box Pcs 18.902.065 1,12 41,88 37.595.203 16,67
Electronic component manufacturing services Million VND 9.315.955 21,06 46,29 17.011.026 21,47
Headphone without microphone Pcs 3.960.933 -25,61 -30,20 9.285.463 -28,43
Uncategorized circuit protective devices for voltage not exceeding 1000 V Pcs 1.098.078 4,16 25,87 2.152.334 7,80
Television sets Pcs 855.690 -28,54 -7,13 2.053.138 -13,35
Electronic displays (except the type used for automatic data processing machines) Pcs 934.538 0,60 37,52 1.863.492 19,47
Uncategorized parts of other electronic components Kg 866.741 -3,08 16,05 1.761.055 5,51
Uninterruptible Power Supply (UPS) used for automatic data processing machines, their auxiliary machines and telecommunication equipments Pcs 747.296 -10,31 53,11 1.580.513 44,63
Manufacturing electric wires and cables service Million VND 777.327 26,20 17,01 1.393.278 -12,98
Tablets with price below 3 million VDN Pcs 532.424 -30,64 -27,20 1.300.022 -32,52
Intergrated circuits 1000 Pcs 475.756 6,66 64,14 921.795 32,67
Tablets with price from 3 to under 6 million VDN Pcs 156.967 -26,24 19,69 369.784 -26,91
Office offset printers Pcs 96.725 3,42 -5,40 190.249 -16,45
Tablets from 6 to under 10 million dong Pcs 94.605 -0,30 -4,84 189.495 -27,16
Batteries 1000 Pcs 30.216 5,64 -4,53 58.818 -9,90
Copper single strand insulated electric wire Tons 24.242 -1,31 19,11 48.806 10,24
Electric cables for voltages ≤ 1000V Tons 14.938 20,73 50,55 27.311 17,87
Other copper electric cables and wires Tons 10.780 -1,21 18,06 21.691 3,47
Printer parts using components such as dies, rollers, and other printing parts, except Office offset printers Tons 1.151 10,25 67,93 2.194 4,82
Parts of computers, cash registers, postage-free stamp machines, ticket machines and other similar machines with calculating capabilities (except vending machines, ATMs …) Tons 107 8,67 15,11 205 -9,81
electric or electronic lamps, light bulbs, vacuum or flash lamps with a glass enclosure; machines for manufacturing hot glass or glassware Ton 29 -21,93 67
Electrical equipments used for telephone lines, telegraph lines and electronic information systems Million Dong 37.113.334 -1,99 65,38 74.979.773 42,55

(Source: Data compiled of Preliminary statistical data of the General Statistics Office)

Despite strongly affected by Covid-19, the production of electronics, computers, and optical products in the first 3 months increased by 14.3% over the same period. The inventory index of products in this group rose by 4.5%.

The first phase of the first quarter, the electronics industry was also seriously affected by the supply sources that depend on China and other countries where the epidemic was breaking out, thus disrupting the production schedule. In addition, border control measures to prevent the epidemic will have an impact on the input sources for production as well as consumer markets in Vietnam’s electronics industry.

The supply of raw materials has been partly met although it is still not as required because some border gates are still applying epidemic control measures. In addition, enterprises have sought to diversify sources of supply besides China. However, it is not easy to find alternative sources of supply as costs are high and sources are unstable in quantity and quality in the context of production specialization in the current global chain and the distinctive feature of electronics production.

According to the Ministry of Industry and Trade, the electronics manufacturing industry in Vietnam could be hit hard in the next quarters of 2020 due to complicated developments of the epidemic, thus consumption demand for electronic products in the US and Europe, Vietnam’s main export markets are likely to reduce.

* World consumption: due to the impacts of the epidemic, the consumption of some electronic components, computers have increased because of the increased demand for services used to work remotely and work from home to prevent the spreading of the diseases.

DRAMeXchange forecasted market demand for DRAM and SSD mobile hard drives for businesses

RAMeXchange said that the supply of server DRAM is now tight and inventory levels at both suppliers and customers are low. Due to social isolation, it requires to work from home, the demand for teleworking, and cloud services have also driven up demand for enterprise SSDs (mobile solid-state drives) and overwhelmed NAND suppliers. If the epidemic situation is not positive, this demand will continue to increase in the second quarter with ASPs riding 10-15% higher than the previous quarter. Whether or not the NAND market is in shortage or oversupply in H2 depends on whether or not coronavirus infections are receding or growing.

According to DRAMeXchange, server demand for DRAM in the second quarter will increase by 20% compared to the second quarter and SSD price in the second quarter will increase by 10-15% compared to the previous quarter.

2. Electronics manufacturing technology

* Apple and Google work together to track the spread of coronavirus

Apple and Google two companies will launch developer tools (called APIs) in May, which will enable interoperability between Android and iOS devices using apps from the public health authorities. The applications will launch on the iTunes App Store and Google Play Store.

Experts started to call on the private sector to help track the spread of coronavirus using so-called syndromic surveillance, a technique that can be used to track pandemics. Technology companies are particularly well-positioned to do that, because most people in the United States own a phone where the app can be installed, and also because of government funding. The United States government funding for syndromic surveillance has dried up.

A press release announcing their partnership said Google and Apple were announcing joint efforts to allow the use of Bluetooth technology to help the US government and health agencies reduce the spread of the virus, with user privacy and security central to the design.

In the next two months, Apple and Google will work to enable a broader Bluetooth-based contact tracing platform by building this functionality into the underlying platforms, Apple said in a press release.

Google’s site said the apps would not collect personally identifiable information or user location data and people who test positive are not identified to other users Google or Apple. Apps would store locations for about 14 days. The data would only be used for contact tracing by public health authorities for COVID-19 pandemic management, Google said.

Apps have been used in other countries, like Singapore, where phones with contact tracing apps record encounters between people and store data in phones for 21 days. In Singapore, Bluetooth signals record when people are near one another but the locations of folks using the app is not collected.

“Privacy, transparency, and consent are of utmost importance in this effort, and we look forward to building this functionality in consultation with interested stakeholders. We will openly publish information about our work for others to analyze,” the companies said.

Alphabet’s Verily also has a site that directs people to local testing locations in the San Francisco area, including San Mateo and Santa Clara counties. Separately, Google has its own COVID-19 informational site. It also helped New York State create an online unemployment application. Google is also already helping public health officials to track whether social distancing mandates are being followed.

3. Opportunities for cooperation, investment, and technology transfer with CPTPP members

* Vietnam actively connected with Singapore Industries Association to increase export opportunities

Amid COVID-19 outbreak through the globe, Vietnam is also one of the markets that suffered heavily, resulting in economic losses, sharp decline of imports and exports, the Vietnam Trade Office has actively connected with industry associations of the host country and those in Vietnam in order to support Vietnamese firms in taking advantage of opportunities to boost their exports to Singapore.

Apart from organizing field trips for Singaporean fruit and vegetable importers to Vietnam to seek supply sources in February, the office has also continued to collect information related to the public procurement demand of the Singapore Government, and actively implemented trade promotion and business matching activities.

Additionally, the Vietnam Trade Office in Singapore also endeavored for business matching through the Trade Portal and social networking services to boost exports to Singapore.

About 20 orders have been signed by partners in many different fields. According to the statistics of Singapore Enterprise Department, Vietnam’s export value to Singapre in February 2020 increased by 49% compared to January 2020 and increased 102.78% compared to the same period in 2019.

To catch up with the global trend as well as take advantage of opportunities for export promotion, the Vietnam Trade Office in Singapore also raised a proposal to the representative office of Vietnam Airlines in Singapore to support Vietnamese export enterprises.

Vietnam Airlines also fully agreed and complied with the regulations of borders closing set by two countries to control and limit the spread of the disease COVID-19, specifically, it will cancel all flights serving passengers from Vietnam to Singapore and vice versa.

However, to maintain flights on transporting essential goods and supplies between the two countries, Vietnam Airlines still ensure trade exchange between the two countries. The airline also has special offers on lower shipping rates for orders of Vietnamese businesses exporting to Singapore.

II. Imports and exports of electronics products between Vietnam and CPTPP members.

1. Exports

1.1. Overview of exports with CPTPP members

Domestic enterprises are actively exporting electronic components to traditional markets such as China, the United States, Japan and expanding market share, boosting export of computers and electronic components to other markets, other countries and regions like some of CPTPP member countries.

According to the General Department of Customs, the export turnover of computers and electronic components in March 2020 reached over 3.68 billion USD , a rise of 34.52% over the previous month, and a rise of 30.56% compared to March 2019. In the first 3 months of 2020, total export turnover of computers and electronic components reached 9.08 billion US $ , up 27.54% over the same period last year, and accounted for over 14.36% of total export turnover of goods of our country.

Exports of these products to some countries in the CPTPP group reached US $ 335.8 million, accounting for 9.1% of the country’s export turnover of computers and electronic components, an increase of 16.6% compared to the previous month and of that of 14.5% compared to the same month in 2019. Thus, in the first 3 months of this year, total export turnover of this commodity reached 875.6 million USD, a rise of 8.3% over the same period in 2019. In March 2020, Japan remained a market with the largest export turnover, accounting for 34.9% of total exports; followed by Mexico, Singapore Malaysia … The export turnover of these markets reached over 30 million USD.

Table 4: The Viet Nam’s export turnover of electronic products to CPTPP members in March 2020 and in 3 months of 2020

 

Thị trường Mar 2020  (Million USD ) Compared to Feb 2020 (%) Compared to Mar 2019 (%) 3 months in 2020 (Million USD ) Compared to 3 months in 2019 (%) Proportion of Mar 2020 to  CPTPP (%) Propotion of Mar 2020 to  Vietnam(%)
Total Vietnam’s export of electronic products 3.687.752.203 34,5 30,6 9.081.867.651 28,7 * 100,0
Including  CPTPP Group 335.842.806 16,6 14,5 875.623.606 8,3 100,0 9,1
Japan 117.160.776 28,3 38,0 288.233.419 25,4 34,9 3,2
Mexico 86.524.541 26,9 68,8 220.159.465 25,6 25,8 2,3
Singapore 36.514.852 28,0 -32,5 86.535.313 -35,8 10,9 1,0
Malaysia 35.919.911 1,0 -4,1 109.526.972 12,9 10,7 1,0
Australia 27.500.161 -2,0 -31,5 80.947.638 -17,3 8,2 0,7
Chile 16.236.297 11,0 355,3 34.772.905 119,9 4,8 0,4
Canada 12.762.595 -28,5 -25,8 45.164.441 -0,4 3,8 0,3
New Zealand 3.223.673 -19,8 -33,0 10.283.453 -16,2 1,0 0,1

(Source: Preliminary statistical data of the General Customs Office )

Figure 1: The Viet Nam’s export turnover of electronic products to CPTPP members during 2018-2020 (Unit: Million USD )

(Source: Preliminary statistical data of the General Customs Office)

1.2. Export to CPTPP members

1.2.1. Export of computers and electronic components to Japan:                    

Over the past years, Japan has always been Vietnam’s leading economic and trade partner, especially the trade and cooperation relationship between the two countries with outstanding and comprehensive development in many fields. Japan is currently the third largest export market (after the US and China) and the third largest import market (after China and South Korea) of Vietnam.

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is opening up huge opportunities for businesses in export activities, particularly to the Japanese market, one of Vietnam’s leading trading partners.

In order to boost exports to Japan, businesses and industries need to research, conduct surveys on specific needs of the market, and build appropriate marketing strategy. Products with designs, colors and product packaging must be suit consumers’’  tastes. At the same time, enterprises must actively participate in seminars, trade promotion programs to introduce products as well as the strengths of businesses, finding new customers, expanding business markets …

In March 2020, Vietnam’s exports of computers and electronic components to Japan reached $US 117.1 million, accounting for only 3.2% of the whole country and accounting for 34.9% of the CPTPP group, an increase of 28.3% and of 38.0%, when compared with the previous month and the same period in 2019, respectively. Exports of these products to Japan in the first 3 months of this year reached US $ 288.2 million, a rise of 25.4% over the same period in 2019.

Figure 2: Viet Nam’s export turnover of computers and electronic components to Japan (Unit: Million $US)

 (Source: Preliminary statistical data of the General Customs Office )

1.2.2. Export of computers and electronic components to Mexico

Mexico is Vietnam’s second-largest export market in Latin America after Brazil. The main export products of Vietnam to Mexico are telephones, footwear, computers, textiles… Under the CPTPP, Mexico pledges to eliminate 77% of tariff lines as soon as the Agreement comes into effect, equivalent to 36,5% of import turnover from Vietnam and will eliminate 98% of tariff lines in the 10th year after the Agreement becomes effective.

According to the General Statistics Office, Vietnam’s exports of computers and electronic components to Mexico market reached 86.5 million $US, accounting for only 2.3% of the country’s share and 25.8% of the CPTPP group, a rise of 26.9% over the previous month and of 68.8% over the same period last year. For the first 3 months of this year, exports of this commodity to Mexico reached $US 220.1 million, an increase of 25.6% over the same period in 2019.

Figure 3: Viet Nam’s export turnover of computers and electronic components to Mexico during 2018-2020 (Unit: Million US $ )

 (Source: Preliminary statistical data of the General Customs Office )

1.2.3. Export of computers and electronic components to Malaysia

Electronic products made in Malaysia are mainly for exported (accounting for over 50% of the country’s export turnover), of which specialized electronic products account for nearly 50%, electronic components account for 40%, and consumer electronic products only account for 10%. The largest export markets of the Malaysian industry include the United States (27%), Singapore (19%), the EU (7%), the rest are Japan and other ASEAN countries.

The majority of electronic products and components manufacturers in Malaysia are Japanese. These manufacturers are connected to form interdependent clusters of electronic components or appliances manufacturing which has advantages in specialization. That is one of the main features of Malaysia’s electronics industry, which is different from independent Thailand’s firms. The electronics industry in Malaysia have developed strongly and gain success thanks to the connection and cooperation networks among Japanese components manufacturers and assembling companies. However, FDI companies hardly contact to cooperate with domestic companies, thus technology transfer between FDI enterprises and domestic enterprises are limited.

Vietnam’s export of computers and electronic components of to Malaysia in March 2020 reached 35.9 million US $ , accounting for 1.0% of the country’s share and accounting for 10.7% of the CPTPP sector, an increase of 1.0 % compared to the previous month but decreased by 4.1% compared to March 2019. Thus, in the first 3 months of this year, exports of these products to Malaysia reached US $ 109.5 million, a rise of  12.9% over the same period in 2019.

Figure 4: Vietnam’s export turnover of computers and electronic components to Mexico during 2018-2020 (Unit: Million US $ )

(Source: Preliminary statistical data of the General Customs Office )

2. Imports

2.1. Overview of imports to CPTPP

In March 2020, the sourcing of imported parts and components for the electronics industry was restored partly because suppliers in China and South Korea returned to operation after the epidemic reached is peak. However, the import is still facing many difficulties. Imports of components and spare parts from China transported by road take more time to clear customs than usual because the border gates are still applying quarantine measures.

Enterprises have sought to diversify methods of transporting imported components instead of going by roads, but this will lead to an increase of costs (air) and take longer time (by sea), and make it difficult to ensure the number of components as well as to meet deadline of production.

According to statistics of the General Department of Customs, in March 2020, imports of computers and electronic components of our country reached over 5.06 billion US $ , went up to 13.61% over the previous month and rose by 14.56% compared to March 2019. By the end of the first 3 months of 2020, total import turnover of this commodity reached US $ 13.75 billion, went up to 16.67% over the same period last year and accounted for 23.12% of the country’s total import turnover..

Market shares in the CPTPP group reached US $ 539.3 million, accounting for only 11.7% of the country’s imports of computers and electronic components, went down  to 13.3% compared to the previous month and went up 34.6%. % compared to the same period last year. In the first 3 months of this year, imports of these products in the CPTPP group reached US $ 1.7 billion, went up to 32.4% over the same period in 2019. The import turnover from the Japanese market accounted for 67.1% of the proportion; followed by Malaysia, Singapore, Mexico… Total imports from these markets reached over US $ 19 million.

 Table 5: The Viet Nam’s export turnover of electronic products to CPTPP members in March 2020 and in 3 months of 2020

Market Mar 2020  (Million US $ )) Compared to Feb 2020 (%) Compared to Mar 2019 (%) 3 months in 2020 (Million US $ ) Compared to 3 months  in 2019 (%) Proportion of Mar 2020 compared to CPTPP (%) Proportion of Mar 2020 compared to Vietnam (%)
Total 5.062.156.681 13,6 14,6 13.753.575.176 16,7  * 100,0
Including CPTPP group 593.339.875 -13,3 34,6 1.792.919.749 32,4 100,0 11,7
Japan 398.372.328 -21,9 44,8 1.250.106.617 41,0 67,1 7,9
Malaysia 131.634.482 23,4 8,2 348.111.996 6,3 22,2 2,6
Singapore 42.337.367 -5,3 49,0 128.872.549 44,0 7,1 0,8
Mexico 19.762.531 -2,5 27,5 57.831.865 16,1 3,3 0,4
Canada 1.233.167 -53,2 520,1 7.996.722 544,4 0,2 0,0

(Source: Preliminary statistical data of the General Customs Office )

 Figure 5: The Viet Nam’s export turnover of electronic products to CPTPP members during 2018-2020 (Unit: Million US $ )

 (Source: Preliminary statistical data of the General Customs Office )

2.2 Imports from CPTPP members

2.2.1. Imports of computers and electronic components from Japan

In March 2020, imports of computers and electronic components from Japan reached US $ 398.3 million, accounting for 7.9% of the country’s total turnover and accounting for 67.1% of the CPTPP group, went down to 21.9 % compared to the previous month and went up to 44.8% over the same period in 2019. In the first 3 months of this year, imports of computers and electronic components from this market reached US $ 1.2 million, an increase of 41. 0% over the same period in 2019.

 Figure 6: Viet Nam’s import turnover of computers and electronic components from Japan during 2018 -2020 (Unit: Million US $ )

(Source: Preliminary statistical data of the General Customs Office )

2.2.2. Import of computers and electronic components from Malaysia

Malaysia’s electronics industry mainly focuses on the production of specialized electronic devices, high-tech components, and accessories such as semiconductor devices (ICs, transistors, sensors…), multi-layer printed circuits, mechatronics components, computer components… Currently, there are more than 900 enterprises operating in the field of electronics, concentrated in 200 industrial parks and 14 export processing zones and most of them are foreign-invested enterprises. Semiconductor devices play an important role in Malaysia’s electronics component manufacturing industry, accounting for about 35-40% of the total export turnover of electronic products.

In March 2020, imports of computers and electronic components from Malaysia reached US $ 131.6 million, accounting for 2.6% of the country’s total turnover and accounting for 12.2% of the CPTPP group, an increase of 23.4% compared to the previous month and 8.2% compared to March 2019. In the first 3 months of this year, imports of computers and electronic components from this market reached US $ 348.1 million, went up to 6.3% over the same period in 2019.

Figure 7: Viet Nam’s import turnover of computers and electronic components from Malaysia during 2018 – 2020 (Unit: Million US $

 

(Source: Preliminary statistical data of the General Customs Office )

 2.2.3.  Import of computers and electronic components from Singapore

According to the statistics of the General Department of Customs, imports of computers and electronic components from Singapore in March 2020 reached 42.3 million US $ , accounting for 0.8% of the country’s total import turnover and accounting for 7.1 % of CPTPP group, decreased by 5.3% over the previous month and increased sharply by 49.0% compared to March 2019. In the first 3 months of this year, accumulative value of imports of these products from Singapore reached US $ 128.8 million, went up to 44.0% over the same period in 2019.

Figure 8: The Viet Nam’s import turnover of computers and electronic components from Singapore during 2018 – 2020 (Unit: Million US $ )

(Source: Preliminary statistical data of the General Customs Office )

III. Policies related to cooperation in electronics industry production, investment, technology between Vietnam with CPTPP members

*New generation of Free Trade Agreement, the Government has issued 12 Decrees on preferential tariffs for partners

The Ministry of Finance has recently submitted to the Government for promulgation of 12 Decrees on preferential tariffs for partners in 12 agreements that Vietnam has signed for the period 2018-2022 / 2023 (CPTPP is in the period from 2019 to 2022 and Vietnam – Laos agreement was from September 1, 2016 to October 3, 2020  and Vietnam – Laos tax decree is under implementation according to AHTN 2012. Under the ASEAN Trade in the Goods Agreement, the tax reduction roadmap has been completed in 2018. The agreements are approaching to the completion of the tax elimination roadmap including ASEAN – China Agreement (2020), ASEAN – Korea (2021), ASEAN – Australia – New Zealand (2022) that can achieve a high rate of liberalization, about 90% by 2019.

CPTPP is currently the latest agreement implemented by Vietnam. On June 26, 2019, the Government issued Decree No. 57/2019 / ND-CP on the Preferential Export Tariff and Vietnam’s Special Preferential Import Tariff to implement CPTPP from the 14th January 2019 until the end of the 31st December 2022. According to that, Vietnam has committed to eliminating export duties on most of the goods that are currently subject to export duties, basically on a roadmap of 5-15 years after the Agreement comes into effect. A number of important commodity groups (such as coal, lignite, crude oil, gold …) continue to maintain export taxes.

Vietnam must comply with the CPTPP’s commitment on import duties to eliminate almost 100% of tariff lines, whereby: (i) 65.8% of tariff lines will have a tax rate of 0% right after the Agreement comes into effect; (ii) 86.5% of tariff lines have a tax rate of 0% in the 4th year after the Agreement comes into force; (iii) 97.8% of tariff lines have a tax rate of 0% in the 11th year from the date that the Agreement is effective; (iv) Import duties for the remaining goods are committed to eliminate with a raodmap to eliminate tariffs at the maximum in the 16th  year or under tariff quotas.

The commitment to eliminate import duties according to the roadmap, Vietnam and CPTPP member countries commit to exempt taxes for cases such as: re-imported goods after being repaired or replaced; goods temporarily imported for repair or replacement without changing the basic features of the product.

Based on the comparative degree of liberalization of the previous FTAs and the new generation FTAs such as the CPTPP, we can see that the CPTPP has the deepest level of commitments with most of the tariff lines equivalent to ATIGA. After 2029 (10 years from the date of entry into force of the Agreement), a few lines of goods will continuously subjected to the tax reduction in the roadmap for 15 to 20 years from the date when the Agreement comes into effect.

In 2019, the total number of FTAs signed by Vietnam (except CPTPP) is 04 agreements, including: Free Trade Agreement between Vietnam and EU (EVFTA), Goods Trade Agreement between ASEAN and Hong Kong (China) (AHKFTA), Vietnam – Cuba Trade Agreement, and Agreement to promote bilateral trade between the Government of Vietnam and the Government of Cambodia.

IV. Annex

Table 1: List of some companies importing computers and electronic components from CPTPP market in March 2020

STT Company
1 Intel Products VietnamCo. Limited
2 Samsung Electronics VietnamThai Nguyen Co. Limited
3 Samsung Electronics Hcmc Ce Complex Co. Limited
4  Vina Solar Technology Co. Limited
5 Lg Display Vietnam Hai Phong Co. Limited
6 Samsung Display VietnamCo. Limited
7 Hanyang Digitech Vina Co. Limited
8 First Solar Manufacturing Vietnam Co. Limited
9 Brother Industrial Vietnam Co. Limited
10 New Wing Interconnect Technology (Bac Giang) Co. Limited
11 Canon Vietnam- Que Vo Branch Co. Limited
12 Lg Electronics Vietnam Hai Phong Co. Limited
13 Goertek Vina Co. Limited
14 Samsung Electronics Vietnam Co. Limited
15 Funing Precision Component Co. Limited
16 Mcnex Vina Co. Limited
17 Sei Electronic components(Vietnam) Co. Limited
18 Kyocera Vietnam Office Machine TechnologyCo. Limited
19 Jabil VietnamCo. Limited
20 Power Logics Vina Co. Limited
21 Fuhong Precision  Component (Bắc Giang) Co. Limited
22 Fuji Xerox Hải Phòng Co. Limited
23 Canon VietnamCo. Limited
24 Olympus VietnamCo. Limited
25 Mega Step Electronics (Vietnam) Co. Limited
26 Hai Boi Services Co. Limited
27 Aac Technologies Vietnam Co. Limited
28 Canon Vietnam- Chi Nhánh Tiên Sơn Co. Limited
29 Compal ( Vietnam) Co. Limited
30 Boviet Solar Technology Co. Limited
31 Green Wing Solar Technology Co. Limited
32 Meiko  Electronics Vietnam Co. Limited
33 Seoul Semiconductor Vina Co. Limited
34 Canadian Solar Manufacturing Vietnam Co. Limited
35 Young Poong Electronics Vina Co. Limited
36 Hnt Vina Co. Limited JSC
37 Datalogic VietnamCo. Limited
38 Anam Electronics VietnamCo. Limited
39 Ht Solar VietnamCo. Limited
40 Hữu Hạn On Semiconductor VietnamCo. Limited
41 Yokowo VietnamCo. Limited
42 Tohoku Pioneer VietnamCo. Limited
43 Inkel VietnamCo. Limited
44 Cammsys VietnamCo. Limited
45 Vietnam Sunergy JSC
46 Hanwha Techwin Security VietnamCo. Limited
47 Unigen Vietnam Hanoi Co. Limited
48 Cresyn Hanoi Co. Limited
49 Greystone Data Systems VietnamCo. Limited
50 Điện Tử Foster Electronics (Bac Ninh) Co. Limited

(Source: Preliminary statistical data of General Customs Office)

 

For more information, please contact Vietnam Trade Office in Canada at Ca@moit.gov.vn