Many big FDI enterprises such as Samsung, Intel, and Foxconn… have invested in the electronics industry in Vietnam because of preferential tax policies, competitive labor costs, abundant and high-quality workforce. Electronics and supporting industries are being developed, helping Vietnam become the world’s top export market for electronic technology products.
Vietnam is an electronic market attracting FDI enterprises
Vietnam, which is considered one of the high-growth potential markets, is becoming an investment destination for many FDI enterprises in the electronics industry. Currently, many famous electronic companies are setting up factories in Vietnam such as Apple, Samsung, LG, Canon, Nintendo… Big corporations such as Intel of the US, Amkor, Hana Micron Vina of Korea or Goertek of China also chose to invest in Vietnam in 2023.
In addition, Vietnam is also the 12th largest electronics export market in the world, which helps businesses in Vietnam have many commercial advantages, export procedures and many incentive taxes in big countries.
Welcoming the wave of investment transition in the electronics industry in Vietnam
Why do countries invest in the electronics industry in Vietnam?
The US-China trade war took place, the US imposed tariffs of up to 25% on many products imported from China valued at about 50 billion USD, in which electronic products were seriously affected. After that, China also imposed the same tariff rate. To avoid being affected by negative policies and minimize tariff risks and other investment costs, electronics industry businesses have looked for measures to shift their production lines and supply chains, withdrawing from both countries.
Meanwhile, Vietnam is a country located adjacent to China and electronic components are Vietnam’s export strength. Therefore, Vietnam has become the country chosen by many big enterprises in the electronics industry such as Apple, and Intel… to set up production factories.
Advantages of investing in Vietnam
Vietnam is increasingly attracting foreign businesses due to its favorable location and policies to develop modern transportation and industrial infrastructure and optimize for logistics and production operations.
In addition, Vietnam’s population is currently over 100 million people, of which 60% of the population is in working age, fully meeting the majority of labor needs for electronic manufacturing with lower production costs compared to other countries in the region. This helps FDI enterprises increase production productivity and profits. In addition, according to Samsung Vietnam’s assessment, most electronic technology engineers in Vietnam have quite high professional qualifications compared to ASEAN countries. This is also an important factor to attract FDI investors.
In particular, enterprises of electronics industry enterprises in Vietnam will be exempted and reduced import and export taxes from EU and ASEAN countries up to 100% according to the TPP and FTA trade agreements… that Vietnam has signed. With the development trend of the electronics industry, Vietnam also offers tax incentive policies such as additional tax exemption for 2 or 4 years and 50% tax reduction from 4 to 9 years according to Decree No. 218/2013. /ND-CP, to strongly attract electronics manufacturing enterprises setting up factories in Vietnam.
See more: Vietnam’s economic situation in 2023 and prospects for 2024
Potential to attract FDI into Vietnam’s electronics industry in the long term
In addition to possessing a favorable location, with quality human resources and cheap labor costs, Vietnam also has investment incentive policies and innovation in the electronics industry, helping businesses develop in Vietnam for a long time.
Many of the world’s leading top corporations such as Intel, Samsung, Amkor, Goertek… have invested billions of dollars in Vietnam, making the development of a chain of businesses in the electronic support industry. In particular, after US President Joe Biden’s visit to Vietnam in September 2023, the prospect of attracting FDI investment in the electronics industry in Vietnam has become more positive, helping Vietnam gradually become an important export market, ranked in the top of global electronics markets.
Some typical investment projects in the electronics industry in Vietnam
Until now, “big companies” such as Intel, Samsung, LG, Foxconn… have shown special interest in the electronics industry in Vietnam by investing and expanding large-scale electronic production facilities in the ASEAN region and the world.
In particular, in October 2010, the US Intel Corporation invested in building a factory in Ho Chi Minh City in the field of manufacturing, assembling and testing computer chip products. This is the largest production facility, accounting for 50% of total output in the world.
Intel factory in Ho Chi Minh City
In March 2008, Samsung Group of Korea, which is famous in the field of electronics manufacturing, mobile phones, household electronic devices…., was respectively set up 6 factories in Thai Nguyen, Bac Ninh, Ho Chi Minh City. In particular, the Samsung factory in Thai Nguyen has the highest revenue in Vietnam with nearly 28 billion USD.
Samsung factory in Thai Nguyen
In addition, from 2016 until now, Korea has invested in Hai Phong 07 large projects: LG Electronics, LG Display, LG Innotek, LG CNS, LG Chemical with 2 projects and LG International with a total investment of 7.24 billion USD.
LG Display factory in Hai Phong
Taiwan’s Foxconn Group has placed 7 factories producing Apple’s main components, electronic computing equipment, electronics and information technology in Bac Ninh, Bac Giang and Quang Ninh.
Foxconn factory in Bac Giang
To put the production line into stable operation, quick and quality factory installation is an extremely important issue for every foreign enterprise. This requires enterprises to look for a reputable general contractor with high expertise and experience in the field of factory construction and high-quality factory construction…
DELCO is proud to be the design and build general contractor chosen and trusted by many businesses for key foreign-invested projects. Below are some FDI projects in the field of electronics industry in Vietnam that DELCO has implemented and built:
HAEM VINA Factory in 2020 (Korea) in Song Khe Industrial Park – Noi Hoang, Bac Giang province.
Power Plus Technology new factory from 2019 – 2020 (Taiwan) in Que Vo 3 Industrial Park, Bac Ninh.
Doosan Factory (Korea) in Dai An Industrial Park, Tu Minh, Hai Duong.
Information compiled from: Finance Magazine, General Statistics Office, Environmental Industry Electronic Magazine,
WTO, Labor Newspaper, VCCI, GSO, Ministry of Education and Training
See more: FDI attraction situation in Vietnam in 2023: sustained growth momentum, attracting global investors
