The electronics manufacturing industry in Vietnam has grown rapidly, becoming a key player in the global supply chain. With its strategic location in Southeast Asia, Vietnam offers competitive labour costs, a young and skilled workforce, and increasingly sophisticated infrastructure. The country has attracted significant investments from global electronics giants such as Samsung, LG, and Intel, which have established large production facilities here. As a result, electronics have become one of Vietnam’s top export sectors.
The government has supported this growth by implementing favourable policies, including tax incentives and investment in industrial zones. Additionally, Vietnam’s participation in various free trade agreements, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA), has strengthened its position as a manufacturing hub. These agreements reduce tariffs, making Vietnam an attractive option for companies looking to diversify their production bases.
Despite its success, Vietnam faces challenges, including rising labour costs and competition from other manufacturing nations like Thailand and Malaysia. However, with continued investment in technology and a focus on innovation, Vietnam’s electronics manufacturing sector is poised to remain a critical part of its economy, driving export growth and contributing to overall economic development.
Box 1: Establishing a manufacturing plant in Vietnam
Low-cost labour, tax incentives, and a broad drive among manufacturers to diversify their supply chains have seen manufacturing plants proliferate all over Vietnam.
Opening a manufacturing plant in Vietnam for foreign firms or individuals, however, is not always easy. Not only are there several technical requirements that need to be met, but there are also a broad number of considerations that need to be made–choosing the right location, the right business structure, and finding the right workers, for example.
Understanding the nuances of opening a manufacturing plant in Vietnam and the complexities of business establishment procedures in advance of entering the market can therefore be crucial to the success of a new factory in Vietnam.
For more information see: How to Open a Factory in Vietnam
Electronics manufacturing in Vietnam in numbers
Vietnam’s exports of computers, electrical products, and spare parts and components thereof, climbed by 14.5 percent in August over July from US$5.9 billion to US$6.76 billion. Vietnam’s electronics exports for the year now stand at US$46.4 billion which is an increase 28.9 percent over the same period last year. This data does not include mobile phones.
Vietnam electronics exports by destination, August 2024
| August | YTD | |
| USA | 2,306,999,134 | 15,501,665,621 |
| China | 995,708,812 | 7,844,439,666 |
| HongKong | 769,025,610 | 5,275,971,222 |
| South Korea | 507,503,751 | 3,498,102,445 |
| Netherlands | 303,610,887 | 2,071,789,409 |
| Taiwan | 146,232,014 | 853,037,889 |
| Slovakia | 137,168,470 | 734,198,236 |
| Japan | 111,960,288 | 935,348,629 |
| Germany | 111,881,599 | 635,808,126 |
| Singapore | 90,935,924 | 670,393,188 |
| Other | 1,270,332,066 | 8,331,140,277 |
| Total | 6,751,358,555 | 46,351,894,708 |
Source: Vietnam Exports Tracker
Major electronics manufacturers in Vietnam
Vietnam has become a major hub for electronics manufacturing, attracting global giants and driving the country’s industrial growth. Samsung is the largest electronics manufacturer in Vietnam, with total investments exceeding $20 billion. The company operates massive production complexes in Bac Ninh and Thai Nguyen provinces, where it produces a significant portion of its smartphones and electronic components for export worldwide. Samsung’s factories in Vietnam are responsible for nearly half of its global smartphone production.
LG Electronics is another major player, with substantial investments in Hai Phong, where it manufactures televisions, home appliances, and vehicle components. LG’s presence in Vietnam has helped the company expand its production base in Southeast Asia. Intel also has a strong footprint in Vietnam, operating a large chip assembly and testing facility in Ho Chi Minh City. This plant is Intel’s largest in the world and plays a critical role in the company’s global supply chain.
Panasonic and Foxconn (one of Apple’s key suppliers) also have significant operations in Vietnam, producing everything from consumer electronics to components for smartphones and other devices. Vietnam’s combination of skilled labour, competitive costs, and government support has attracted these electronics giants, making the country a crucial player in global electronics manufacturing.
Box 3: Exporting electronics from Vietnam
Foreign firms manufacturing in Vietnam count themselves as part of one of the fastest growing, and lowest cost manufacturing industries in the world.
In this light, there is a huge opportunity in manufacturing and exporting Vietnam-made electronics around the world. This can be very profitable but there are a few nuances to the process that foreign firms looking to export electronics products from Vietnam should be mindful of.
See: How to Start an Export Business in Vietnam: Ultimate Guide 2024
Vietnam’s electronics manufacturing by Region
Vietnam’s electronics manufacturing is concentrated in three key regions, each playing a vital role in the country’s production and export of electronic goods.
The northern region, particularly Bac Ninh, Thai Nguyen, and Hai Phong provinces, is the most prominent hub. This area is home to massive production complexes for global giants like Samsung, which operates two of its largest smartphone and electronics manufacturing plants here. LG also has a significant presence in Hai Phong, producing televisions and automotive components. The north benefits from its proximity to China, which aids in supply chain integration and logistics.
The central region is developing but has less manufacturing activity compared to the north and south. However, cities like Da Nang are growing in importance, with increased government efforts to attract investment through industrial parks and free trade zones.
The southern region, especially Ho Chi Minh City and Binh Duong province, is another vital area for electronics production. Intel’s largest chip assembly and testing facility is based in Ho Chi Minh City, playing a key role in global semiconductor manufacturing. This region is also home to numerous other electronics component manufacturers and assemblers, benefiting from its established industrial infrastructure and access to major seaports.
These regions, with their respective strengths, collectively drive Vietnam’s growth as a leading electronics manufacturing hub.
Box 2: Semiconductor manufacturing in Vietnam
Vietnam has been pursuing a greater role in semiconductor supply chains for sometime. However, it’s never been made clear exactly what a win would be in terms of Vietnam’s role in semiconductor manufacturing. No doubt a fabrication project would be a coup, but the reality is that investments of this magnitude command stable business environments with well educated workforces and very low risk and on all three Vietnam faces some distinct challenges…
Read more: Vietnam Semiconductor Manufacturing: Unpacked 2024
What’s next?
Vietnam has emerged as a major electronics manufacturing hub, attracting significant investments from global companies like Samsung, LG, and Intel. The northern region, particularly Bac Ninh and Thai Nguyen provinces, is the primary centre for production, responsible for nearly half of Samsung’s global smartphone output. The southern region, centred around Ho Chi Minh City, is home to Intel’s largest chip assembly plant, contributing to Vietnam’s growing role in the global semiconductor industry.
Government support, competitive labour costs, and participation in free trade agreements have further boosted the sector. Vietnam’s electronics exports now make up a huge portion of the country’s total exports, with growth expected to continue as more companies shift their production bases to the country.
Despite challenges like rising labour costs, Vietnam remains a crucial player in global electronics supply chains and looks set to become even more pivotal in the near future. With this in mind, foreign electronics firms should make sure to keep up to date with Vietnam’s manufacturing industry by subscribing to the-shiv.