According to Tran Hong Quan, commercial director of RX Tradex Vietnam, global technology shifts, particularly in AI, automation, and smart manufacturing are reshaping the country’s industrial landscape. “Vietnam is seeing strong movement in factory digitalisation, with supporting infrastructure catching up fast,” he noted. “Our report shows that in 2025, 4G and 5G coverage will likely reach all provinces, while the country now ranks 52^nd globally in internet infrastructure and 42^nd in data systems.”

“41 per cent of surveyed visitors expressed strong interest in automation technologies. This aligns with our national direction under a Politburo resolution, which clearly prioritises high-tech industries,” Quan added.

Vietnam is currently the world’s fifth-largest exporter of electronics and computer components, and ranks second in mobile phone and parts exports. In 2024, the sector reached an export turnover of $134.5 billion. By the end of May 2025, electronics exports had soared to $60.8 billion, up 39 per cent on-year, reinforcing its position as a key pillar of Vietnam’s export economy.

Major global technology players such as Samsung, Apple, LG, and Pegatron are doubling down on Vietnam, expanding both production and investment. Qualcomm recently launched a research and development (R&D) centre in the country, while NVIDIA has signed a strategic partnership with the Vietnamese government to build a national data and AI R&D centre.

The government’s Semiconductor Industry Development Strategy is expected to be a turning point. It aims to build domestic capabilities in chip design, training, and core technology production.

However, Quan highlighted that Vietnam’s electronics industry remains heavily dependent on foreign investors. “Currently, all mobile phone exports come from foreign-investment firms, 80 per cent of phone components are imported, and over 90 per cent of tier-1 suppliers are foreign-owned,” he said. “R&D among Vietnamese firms is still weak and mostly limited to assembly.”

These structural weaknesses underscore the urgent need for Vietnam to move from low-value assembly towards deeper manufacturing capabilities. Experts at a recent industry forum identified three key trends shaping Vietnam’s electronics sector: the country’s strategic role in global supply chains, strong government push for semiconductors and innovation, and the transformative impact of AI and automation, all of which demand standardised technologies and a skilled workforce.

Industry insiders also discussed the obstacles Vietnamese firms face in adopting AI, the government’s role in attracting quality foreign direct investment (FDI), and the need for universities to better align with labour market demands in high-tech industries.

A representative from the Global Electronics Council in Vietnam noted that the council has been promoting sustainable growth in the sector through updated IPC standards, public policy advocacy, and workforce training. These IPC standards, now increasingly adopted by Vietnamese manufacturers, help ensure quality, consistency, and reliability in production, enabling firms to meet global benchmarks and access new export markets.

Meanwhile, upskilling efforts have helped raise Vietnam’s profile as a serious player in electronics manufacturing. “We are seeing Vietnamese firms gain greater international recognition for their quality and reliability,” said the council’s representative.

Yet, market-specific risks are growing. The United States remains Vietnam’s largest electronics export destination, accounting for roughly 29 per cent of total export value.

According to Do Thi Thuy Huong, executive board member of the Vietnam Electronic Industries Association and deputy president of the Vietnam Association for Supporting Industries, electronics exports to the US made up more than 40 per cent of certain segments. In 2024, Vietnam exported $41.7 billion worth of electrical machinery and equipment to the US, 34.9 per cent of its total export value to that market.

Huong warned that rising US tariffs could significantly impact Vietnamese manufacturers. “High tariffs will push up production costs, squeeze profits, and reduce the competitiveness of local firms,” she said.

Still, experts argue that this moment presents an opportunity for Vietnamese companies to restructure supply chains, embrace digital transformation, and tap into cross-border e-commerce and free trade agreements.

“Exporters should use this window to accelerate delivery, especially on orders already signed,” Huong suggested.

Source: Vietnam Investment Review