Electronics industry hails WTO a success

One year after joining the WTO, Viet Nam’s electronics companies have defied expectation and grown, said to Tran Quang Hung, secretary general of the Viet Nam Electronics Enterprises Association."We initially thought that many domestic electronics companies would falter after accession to the WTO, but not only did they stay alive, they grew," he said.In fact, the quality of electronics assembled in Viet Nam is now considered to be on par with those assembled abroad.Take domestic electronics companies Tivi of Hanel, BTV, Denco, Tien Dat and CMS computers for example.According to the association, the total retail value of Viet Nam’s electronic goods reached US$3.1 billion last year, a 29 per cent increase over 2006."In recent years, the nation’s electronics sector has seen year-on-year growth of 10-12 per cent. The sector is expected to expand further by 2010 to achieve revenue of $6 billion from digital technology, mobile phones, cameras and laptops," said Hung.There is room to improve productivity however. The industry remains behind in designing products which suit consumer preference. While a shortage of skilled labour is also a concern.In addition, it’s difficult for domestic enterprises to compete with foreign ones as they lack the capital to apply modern technology.Meanwhile, under WTO commitments local enterprises must reduce the retail price of electronics. Prices are therefore predicted to decrease this year due to Viet Nam having to open to foreign wholesalers from January 1, 2009.To enhance competition it’s also necessary for local enterprises to design and make more specialised products.Viet Nam will need an estimated $2 billion from now to 2010 to develop its domestic electronics industry, of which up to 90 per cent will come from foreign investors.

Source: Vietnam News