Electronics Industry: Solidifying the key role and boosting industrial production

Over the past 27 years since its re-establishment, Vinh Phuc has transformed from a predominantly agricultural province into a major hub of industrial production, becoming one of the leading automobile and motorbike manufacturing centers in the Northern key economic region and nationwide. During the decade from 2011 to 2020, the province's industrial growth rate averaged 9.92% annually, contributing 3.57 percentage points to the overall economic growth. The electronics and electrical equipment sector, in particular, has shown an impressive annual growth rate of 56.6%, significantly increasing its share in the province’s industrial structure—from 1.6% in 2010 to 11.4% in 2015, and reaching 43.5% by 2020. This sector has emerged as the second-largest contributor among all industrial sectors in the province. In the first seven months of 2024, despite global economic and political challenges, the electronics industry in Vinh Phuc witnessed substantial improvements, with a surge in orders and a 15.3% increase in production revenue compared to the same period in 2023, maintaining its role as a driving force for the province's industrial and economic growth. To date, the electronics and electrical equipment industry has attracted over 200 enterprises, an increase of 134 enterprises since 2015 and 170 since 2010. Among these are six FDI enterprises recognized by the Ministry of Science and Technology with High-Tech Enterprise Certificates. While the number of enterprises in this sector is relatively small, accounting for only 12.4% of the province's total industrial enterprises, they have created jobs for over 52,400 workers, representing 34.8% of the industrial workforce and becoming the largest employment sector among the main industrial groups in Vinh Phuc. Notably, FDI enterprises in the electronics sector constitute nearly 50% of all FDI enterprises in the province. Additionally, the industry boasts 40 enterprises with a workforce of 300 or more, accounting for 43.5% of all similarly-sized companies in the provincial industrial sector.  
 
This success is attributed to the province's recent efforts in issuing policies to create an open and favorable environment, prioritizing the development of the high-tech electronics industry, and hosting investment promotion seminars for domestic and foreign investors. Furthermore, the province has supported enterprises in innovation, technology transfer, productivity enhancement, and quality improvement, facilitating deeper integration into the global supply chain. Administrative reforms have been accelerated to create a conducive investment and business climate, alongside expedited land clearance and infrastructure development in industrial parks and clusters to provide ready sites for investors. Complementing these efforts, businesses have actively reduced costs and improved productivity and product quality. Moreover, the rapid digital transformation across various life sectors has driven demand for smart electronic products such as tablets, smartphones, laptops, and smartwatches. Several companies have introduced new product lines with notable hardware and software advancements, capturing significant consumer interest. These factors have helped industry players like Compal Vietnam Co., Ltd., BH Flex Vina Co., Ltd., Interflex Vina Co., Ltd., and Arcadyan Technology (Vietnam) Co., Ltd. secure stable orders from major technology corporations such as Apple, Dell, Samsung, and Google. Additionally, several electronic product manufacturing projects and factories have commenced operations in the province since the beginning of the year, contributing to the industry's increased output and revenue.

 

Lumi Vietnam Joint Stock Company is one of the standout enterprises in Vinh Phuc province's electronics industry. After 12 years of relentless innovation, creativity, and mastery of core technologies, Lumi Vietnam has established itself as a pioneer in the smart home sector, holding the largest market share in Vietnam and being the sole brand exporting products to eight countries worldwide. In pursuit of a new mission and vision to conquer the burgeoning IoT market, Lumi Vietnam inaugurated the Lumi Smart Factory in Thang Long Industrial Park, Vinh Phuc, in late April. The factory spans 6,000 square meters and involved a total investment of over VND 100 billion. Lumi Smart Factory not only manufactures smart home and lighting devices for Lumi Vietnam but also expands its operations in the ODM, OEM, and EMS fields for both domestic and international partners. This facility is recognized as the first large-scale, high-tech IoT/smart home factory in Vietnam under the "Make in Vietnam" initiative, reaffirming the brand's leading position and the company’s long-term strategic vision. The factory is equipped with modern and advanced machinery, production lines, and equipment sourced from global technology leaders like the US and Japan. It also employs professional production processes, including PCBA production lines that adhere to Japanese standards. As a result, Lumi Smart Factory has an annual design capacity of up to 1,000,000 smart home devices, 500,000 smart lighting devices, and millions of other IoT devices. All products, from PCBA circuits to finished IoT/smart home items, are manufactured to the highest standards of precision, reliability, operational stability, and aesthetics.
 
Despite being a key industry with significant achievements in attracting foreign direct investment, the electronics sector in Vinh Phuc still largely relies on FDI enterprises. The localization rate remains low, as most FDI enterprises depend on imported components and materials, leaving domestic supporting industries with limited opportunities to supply to these FDI enterprises. Currently, there are no supporting industrial enterprises in the province involved in supplying manufactured products to electronics companies within the province.
 
To ensure that the electronics and electrical equipment manufacturing industry continues to lead and drive industrial growth, Vinh Phuc province plans to maintain a favorable environment to attract both domestic and foreign investments. The focus will be on developing electronic components and accessories linked to the international production and supply chain. By 2030, the province aims to gradually reduce and discourage investment in labor-intensive, low-value-added processing and assembling enterprises within the electronics and electrical equipment industry. Instead, the emphasis will shift towards attracting investments in the production and development of new, high-tech products to ensure sustainable growth. Additionally, the province will strengthen the collaboration between local businesses in Vinh Phuc province and FDI enterprises, fostering an environment conducive to technology transfer based on production cooperation between FDI enterprises and local production businesses in technology, management, application, and production experience. This strategy aims to create a spillover effect in technology and skill development within the electronics industry, particularly in electronic components and electrical equipment. Moreover, enterprises will be encouraged to develop supporting industrial products and to link the development of the electronics industry with mechanical engineering and information technology, aiming to foster and expand combined products in the field of mechatronics.