Vietnam Pushing Asian Competitors PDF Print E-mail
Written by Mike Buetow   
Thursday, 19 June 2008 08:06
NEW YORK – Vietnam’s January 2007 entry into the World Trade Organization set in motion what’s become a fast-growing electronics manufacturing locale. The Southeast Asian nation’s low labor cost, availability of trainable local population and favorable government policies are attracting global EMS/ODM companies to set up operations, says research firm Frost & Sullivan.

The government's emphasis on making electronics a key export earner is pushing Vietnam to migrate to the path of high-tech industry. The country is also experiencing rapid increase in semiconductor consumption. Many investors feel that it is easier to do business in Vietnam than in China due to lesser regulatory hassles and government business-friendly policies, Frost says. The response: The electronics and IT industries are turning in average growth rates of 25 to 35% a year.

According to Frost, the main products are printers, computer and mobile phone parts, and PCBs. Vietnam's electronics industry is targeting domestic production of $5 billion to $6 billion by 2010.

As such, Vietnam will soon emerge as a tough competitor to other well-established neighbors in Asia, Frost says. It is to be seen if Vietnam will emerge as a viable alternative.

Frost research analyst Akkaraju Venkata Sridevi says, "The electronics industry in Vietnam is very young and rapidly developing due to high priority in the government's development strategy. Vietnam has also become a heaven for investors from Korea and China. Intel has tripled its investment in Vietnam to $1 billion.”

Vietnam is also an emerging destination for investments, after China and India, she says. "The economic growth rates spell success for the country. Vietnam's economy is the fastest growing economy, second only to China, in the Asian region. Government support to establish industry parks, good physical infrastructure, the availability of English-speaking workforce and low labor costs are all factors that make Vietnam an attractive destination." 

The firm will provide a briefing on Vietnam’s EMS/ODM and semiconductor industries, education system and labor force, semiconductor consumption, leading OEMs and macroeconomic indicators. Email Donna Jeremiah at This e-mail address is being protected from spambots. You need JavaScript enabled to view it for info. 


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