Vietnam’s electronic components manufacturing recorded a 216.2 percent increase in January compared to the 2019 baseline, according to Vietnam’s Industrial Production Index. However, this was a decline from December 2024, when output stood at 278.2 percent above 2019 levels.
Month-on-month, production fell by 15.0 percent in January compared to December, marking a notable slowdown. Year-on-year, output dropped by 5.5 percent from January 2024, although overall industry performance remains significantly higher than pre-pandemic levels.
Vietnam’s electronic components manufacturing sector has become a key part of the country’s industrial landscape, driven by both domestic and global demand. The sector has grown rapidly in recent years, with Vietnam emerging as an important player in the global supply chain for electronic products. This growth is primarily due to foreign direct investment (FDI), which has spurred the establishment of large-scale production facilities by multinational companies, as well as the rise of local manufacturing capabilities.
The country has become a major hub for the production of a wide range of electronic components, including semiconductors, printed circuit boards (PCBs), capacitors, resistors, connectors, and other essential parts used in devices like smartphones, televisions, computers, and household appliances. Vietnam’s electronic components manufacturing is closely tied to the assembly of finished consumer electronics, with companies like Samsung, LG, Panasonic, and Foxconn investing heavily in production facilities for these components.
Vietnam’s role in the global electronics supply chain has been growing, particularly in the mobile phone manufacturing sector. Companies such as Samsung and LG have established large plants in Vietnam for the assembly of smartphones and other electronic devices. These plants not only assemble final products but also produce a significant amount of the electronic components used in those products, such as displays, memory modules, and batteries. As a result, Vietnam has become one of the largest producers of mobile phones globally.
The rise in electronic components manufacturing in Vietnam is also a result of the country’s competitive labor costs, favorable business environment, and improving infrastructure. These factors make Vietnam an attractive location for companies looking to diversify their manufacturing operations and take advantage of the growing demand for electronics in both domestic and international markets.
While the electronic components manufacturing sector in Vietnam is thriving, the country faces challenges in terms of supply chain dependencies, particularly for more advanced components that require specialized knowledge and technology. To address these challenges, Vietnam has been focusing on upgrading its technological capabilities and investing in education and training programs to develop a skilled workforce capable of supporting the growing demand for high-quality electronic components.
In summary, Vietnam’s electronic components manufacturing industry is a critical part of the country’s broader electronics sector, contributing significantly to both domestic economic growth and global trade. With continued investments, a strong labor force, and improving technological capabilities, the sector is poised to continue its upward trajectory, playing a central role in the global electronics supply chain.
See also: Electronics Manufacturing in Vietnam