Electronics Sector Fuels Industrial Growth in Vinh Phuc Province

The electronics sector, accounting for about 50% of Vinh Phuc's industrial growth, saw significant improvement in early 2024 with a 15% rise in revenue, surpassing VND116 trillion. The electronics industry continued to affirm its role as a growth driver for Vinh Phuc province's industry.

The electronics sector accounts for about 50% of Vinh Phuc's industrial growth

Vinh Phuc has to date attracted more than 200 producers of electronic components accounting for 60% of total industrial projects in industrial parks, of which many are foreign invested, with the Certificate of High-Tech Business granted by the Ministry of Science and Technology. The province's electronics sector has consistently exhibited the highest growth rate in the industrial value structure and boasts the largest workforce among key industries.

In the first seven months of 2024, the electronics industry considerably looked up as big orders returned and the production revenue climbed 15.3% year on year, thus continuing to play the role of the overall growth driver of the industry and the economy, contributing greatly to the budget revenue and creating many jobs for local workers.

To achieve this result, in addition to support solutions to tackle difficulties and stimulate production and consumption from all levels and sectors, since the beginning of the year, most of foreign-invested electronic component manufacturers from countries and territories such as Japan, South Korea, and Taiwan have actively used modern technological lines and equipment and automated many production stages. Many businesses have applied Technology 4.0 to production to employ less labor but enhance productivity and ensure good product quality to meet big orders in a short time from foreign partners. Many products are deeply involved in global supply chains and highly appreciated by multinational corporations for product quality.

On the other hand, some electronic manufacturing projects and factories in Vinh Phuc province have started operations to increase the sector's output and revenue, for example Mitrastar Vietnam (manufacturing network connection equipment), Universal Microwave Technology (manufacturing data transmission components), and Acc Technologies (manufacturing speakers and microphones for mobile phones).

Based on the industries formed and invested and the industrial restructuring process, the cooperation and connection with localities (in the Red River Delta and the northern key economic region) and especially the goal of becoming one of major automobile and motorbike manufacturing centers of the country, in 2020-2030, the province will seriously prioritize the development of such industries as high-tech industry, processing and manufacturing industry with high added value, especially mechatronics, semiconductor, digital technology, artificial intelligence and robot manufacturing to catch up with the Fourth Industrial Revolution and create a digital platform for other industries.

In the coming time, Vinh Phuc will continue to create a favorable environment to attract both domestic and foreign investors for the development of electronic components and accessories. The goal is to integrate these products into global production and supply chains. The province will also strengthen production cooperation and technology transfer between domestic businesses and foreign direct investment (FDI) firms. Efforts will be made to encourage the development of supporting industrial products and the formation of industrial clusters. A key priority will be to attract domestic manufacturers of supporting industrial products to supply strong industries within the province and neighboring areas. Current top priorities include electronics, mechanical engineering, and metal production. This strategy aims to increase the localization ratio in component production chains for both domestic and international markets.

The province will direct agencies to monitor and address developments, remove obstacles, and support stable operations for industrial manufacturers. Vinh Phuc will also attract investment in industrial zone infrastructure and high-tech parks to support advanced and eco-friendly projects. Additionally, Vinh Phuc will speed up administrative reforms to enhance transparency and fairness, aiming for a strong legal environment, robust technical infrastructure, and excellent business services. The province will continue to collaborate with traditional markets like Japan, South Korea, and Taiwan, while exploring new opportunities in Europe and the United States.

By Thanh Loan, Vietnam Business Forum