Four major markets spend $27 billion importing phones, components from Vietnam

The U.S., EU, China and South Korea imported nearly $27 billion worth of phones and components from Vietnam in the first eight months of the year, according to the Ministry of Industry and Trade.

Vietnam’s shipments of these items to the U.S. were valued at $9.25 billion in the period, up 48% year-on-year; China $8.97 billion, up 11%; and South Korea $3.88 billion, up 23%. Only the EU saw the figure drop 5% to $4.61 billion.

In the eight months, the country's total export of phones and components reached $40 billion, up 13.5% over the same period last year.

Export of computers, electronic products and components hit $36.71 billion, an year-on-year increase of 15.2%.

Shipments of these items to the U.S. fetched $10.12 billion, up 25%; mainland China $7.7 billion, up 16%; the EU $4.88 billion, up 19%; Hong Kong $3.83 billion, similar to the same period last year; and South Korea $2.29 billion, down 2%.

In total, the group of phones-components and computers-electronic products-components alone brought home nearly $77 billion in the period.

Over the years, Vietnam has attracted a large amount of foreign direct investment into the production of phones, computers, electronic products and components. Many global giants have a presence in the country with high-tech production facilities like Samsung, LG, Foxconn, Fukang Technology, making Vietnam the ninth largest electronics exporter in the world.

About 60% of Samsung's smartphones are made in Vietnam. The group had invested more than $20 billion as of June 2022, about 28 times higher than its initial commitment.

Vietnam boasts many advantages to attract FDI enterprises in the field of electronics. The free trade agreements that it has signed are creating opportunities for many large electronics firms to expand their scale to take advantage of preferential tariffs in export activities.

Christopher Marriott, Savills CEO, Southeast Asia, said: “Vietnam has a very strong work ethic and a very highly educated labor force. We've already seen certainly up in places like Hanoi and Ho Chi Minh City high-end manufacturing in the technology, and electronics marketplace. With that growth of what I would call a base industry and a high-grade base industry in technology and electronics, it attracts investors.”