Why Vietnam Became the World’s Second Largest Mobile Phone Exporter
In recent years, Vietnam has made impressive strides in the global tech industry. According to the Vietnam Import-Export Report 2021, the country’s domestic phone production reached a staggering 233.7 million units, marking a notable 7.6% increase.
Additionally, the production value of phone components skyrocketed by 29.5% compared to the previous year, reaching a remarkable VND 580.8 trillion.
Resilience Amidst Challenges
Amidst the challenges posed by the COVID-19 pandemic, Vietnam’s technology supply chain showcased remarkable resilience. While regions like Ho Chi Minh City faced disruptions, the North managed to maintain its momentum. In fact, electronics exports surged to an all-time high of $108 billion in 2021, contributing a significant 32% to the country’s total exports.
Samsung’s Impact on Vietnam’s Tech Industry
A significant portion of Vietnam’s tech industry success can be attributed to the extensive foreign direct investment (FDI) made by Samsung. Over the past two decades, Samsung Group has invested a staggering $18 billion into Vietnam, shaping the nation’s tech ecosystem.
Presently, Samsung operates six factories and a research and development (R&D) center in Vietnam, including two phone manufacturing facilities in the North that collectively supply half of Samsung’s global phone production.
The impact of Samsung’s investments became evident in Vietnam’s economic performance. In 2021, Samsung Vietnam recorded a substantial 14% increase in revenue, largely fueled by a remarkable four-fold surge in folding smartphone sales.
Market Share and Global Position
This concerted effort propelled Vietnam’s global smartphone market share to new heights. Despite China’s dominance in manufacturing over 50% of the world’s smartphones, Vietnam managed to secure an impressive 13% market share. This accomplishment propelled Vietnam to the position of the world’s second-largest smartphone exporter.
Export Turnover and Challenges
The results of this success were evident in Vietnam export data. In 2021, the export turnover of completely built-up (CBU) mobile phones surpassed $33.1 billion, marking a notable 14.9% increase from the previous year.
This category accounted for a substantial 57.6% of the total export turnover for this commodity group. Additionally, the export of phone components and accessories reached over $24.4 billion, a significant 9.1% increase compared to 2020, constituting 42.4% of the total turnover.
However, Vietnam’s journey as a mobile phone and component exporter hasn’t been without challenges. The global shortage of semiconductor chips, exacerbated by the pandemic, has created supply chain disruptions. This scarcity has had a notable impact on the production of phones and other chip-dependent products.
Conclusion
In conclusion, Vietnam’s ascent to becoming the world’s second-largest mobile phone exporter is a testament to its resilient tech industry and strategic foreign investments. Samsung’s substantial contributions, alongside the country’s ability to navigate challenges, have propelled it to a position of global prominence.
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