In 2016 and early 2017, cell phone and accessories always held the highest export output, contributing to the country's trade of balance and reducing trade deficit.
At present, foreign firms account for one third of electronic businesses in Vietnam but contribute to 90 percent of the country’s electronic export turnover and 80 percent of domestic market share.
Mr. Hironobu Kitagawa, trade representative chief of Japan External Trade Organization (JETRO) in Hanoi, said that low localization had constrained Vietnam’s growth rate.
Specifically, the localization rate in Vietnam is only 34 percent while it is 68 percent in China and 57 percent in Thailand. Therefore, businesses now are forced to import accessories from Thailand and China. This has raised costs and risks for them.
The Vietnam’s electronic industry needs to increase productivity, develop value chains and hike localization rate to improve cost competitiveness and ensure stable accessories supply of domestic firms , according to Mr. Hironobu Kitagawa.
Japanese side is now focusing on seeking local partners, added him.