FDI enterprises dominate electronics and electronic components in Vietnam

Updated: Jan 4

The electronics and components industry is currently a bright spot in the Vietnam economy. The trend of current life style has given this industry many future prospects. In the period 2016-2020, the electronics and components industry has developed strongly with investment projects from abroad, big names in the industry such as Samsung, LG who have also invested in building production facilities, large-scale high-tech electronic products in Vietnam. 2020 is also a difficult year for the entire economy, let's look back at the big players in the electronics and components industry to have a broader view of the electronics industry.



Samsung

Samsung Group from Korea has started production activities in Vietnam since 2008 with the first investment project of Samsung Electronics Vietnam (SEV) mobile phone factory in Bac Ninh, then Samsung Vietnam continues to build another large manufacturing plant in Thai Nguyen (SEVT). The manufacturing activities of these two companies contribute a lot to Samsung's revenue and profits and local budgets, and they are also Samsung's two largest mobile phone factories worldwide.





After more than 12 years of operation in Vietnam, Samsung now has a total of 6 factories and continue to build a research and development center in Hanoi. Two large Samsung factories, Samsung Electronics Vietnam and Samsung Electronics Vietnam Thai Nguyen, specialize in manufacturing mobile phones, tablets, and watches; Samsung Display Vietnam specializes in manufacturing LCD and OLED screens for Samsung devices; Samsung Electro-Mechanics Vietnam specializes in manufacturing high-tech electronic components for technology products such as cameras, circuit boards, etc.


By the end of Q2-2021, Samsung ranked first in the mobile phone market with 37% market share, but this figure has decreased compared to the same period in 2020 (39% market share). The net revenue of Samsung group in 2020 is about VND 1,372 trillion, with a profit after tax of VND 84.8 trillion, these figures are far ahead of other businesses in the industry. Total assets of Samsung Group are about 782 trillion dong, the largest asset is in Samsung Electronics Vietnam Thai Nguyen with 329 trillion dong.



LG Electronics

LG Group is also a large corporation that has invested and operated in Vietnam since 1995. Up to now, LG owns 3 factories producing LG's main products, including LG Electronics Vietnam Hai Phong, which specializes in manufacturing LG products. electronic; LG Innotek Vietnam Hai Phong specializes in manufacturing and selling electronic components and LG Display Vietnam Hai Phong specializes in LCD and OLED screens, in the mobile phone segment, the average output of these three factories each year accounts for about half of LG's output globally, in addition in Vietnam LG also has a factory, LG Chem Hai Phong Vietnam, specializing in the production of plastic particles (such as lupoy, lupox...).


LG's net revenue in 2020 is VND 249.3 trillion, profit after tax is VND 9.2 trillion. Although profits are still growing over the years, mobile phone production is only a small segment of LG, so in the market, it is difficult for LG to compete with other big names. LG mostly eyes on such products as TVs, refrigerators, washing machines...LG is planning to withdraw from the mobile phone market to focus on developing in other research directions. At the end of 2020, LG's equity in Vietnam is 40 trillion dong and total assets are 127 trillion dong.



Intel

Intel products Vietnam is an investment project of the US since 2006 and put into operation in 2010, this is the largest US investment in high technology in Vietnam with more than 1 billion USD, bringing Intel products Vietnam into to become the largest assembly and testing facility in Intel's network worldwide. Besides Samsung, Intel is also a name that helps attract large foreign investments in the high-tech field thanks to advances in technology as well as production. In early 2021, Intel increased its capital by 475 million USD.




Intel specializes in manufacturing Intel Core series processors, in addition to other technologies such as 5G, IoT, electronic chips. In the processor supply market, the two largest suppliers are Intel and ADM. , and Intel has a larger market share. In 2020, the net revenue of Intel products Vietnam is VND 38.4 trillion, up 60% compared to the previous year, the profit after tax of the business is VND 5.4 trillion.



Foxconn

Another famous name in the electronics field is Foxconn Technology Group from Taiwan, which has hundreds of branches around the world. Foxconn Group is known as Apple's main component supplier and manufacturing partner, specializing in the production of computer-related equipment, electronic goods, information technology... Apple products are processed, manufactured in Vietnam such as AirPods, Apple Watch, iPad, Macbook. In 2021, the wave of shifting production lines of technology products out of China takes place and Vietnam is an investment destination targeted by Foxconn to expand factories.


In Vietnam, the group has invested in 5 large factories in Bac Ninh and Bac Giang, in which, in the top 10 enterprises in the electronics and components industry, there are 3 companies under Foxconn those are Co., Ltd. Funing Precision Component, Fuhong Precision Component Co., Ltd (Bac Giang), New Wing Interconnect Technology Co., Ltd (Bac Giang). The net revenue of these enterprises in 2020 is 51.5, 39.5 and 23.4 trillion dong, respectively, the revenue of Funing Precision Component, Fuhong Precision Component also surpasses Intel Products Vietnam. Although the revenue is large, the after-tax profit of all three enterprises combined is only about 5.4 trillion VND.


Goertek

Goertek Vina Science and Technology Co., Ltd belongs to Goertek Technology Group (Hong Kong) specializing in research and production of technological equipment, Goertek's first project in Vietnam was in 2013 in Bac Ninh, and now The group is starting to build another factory in Nghe An. Goertek is a manufacturing partner of major technology companies such as Google, Microsoft, Facebook, Amazon, Samsung, Sony… Goertek Vina specializes in manufacturing products for Samsung such as headphones, earphones, mics. In 2020, Goertek Vina's net revenue is VND 50.2 trillion, profit after tax is VND 2.2 trillion, total assets of the business are VND 38.8 trillion.






Canon Vietnam

Canon Vietnam Co., Ltd. is a member of Canon group - Japan with main products are printers. Canon Vietnam has been operating since 2001 and now has 3 main production factories: Thang Long Factory (Ha Noi). Noi) – specializes in manufacturing all kinds of inkjet printers, photo scanners; Que Vo Factory (Bac Ninh) - specializes in manufacturing all kinds of laser printers; Tien Son Factory (Bac Ninh) - specializes in manufacturing all kinds of inkjet printers. In the Vietnamese market in 2020, Canon leads in the camera market with 48% market share (followed by Sony with 22% market share) and leads the printer market with 75% market share of laser printers, 55 % market share of inkjet printers, Canon printers have always been popular with Vietnamese consumers for decades. Canon Vietnam's 2020 net revenue is 39.1 trillion dong, after-tax profit is 1.8 trillion dong.



Jabil

Jabil Vietnam Co., Ltd. belongs to the leading high-tech group Jabil Circuit of the US, Jabil invested in building a factory in the high-tech park in Ho Chi Minh City, this is the second largest project invested here after Intel. Jabil is the world's third-largest supplier of electronic manufacturing services, with headquarters in St. Petersburg, Florida. Jabil Vietnam specializes in assembling and testing printed circuit boards, complete high-tech products; Jabil Vietnam does not stop at production but also expands to research and development, design, and human resource training. Net revenue in 2020 of the enterprise is 23.3 trillion dong, total equity is 3.8 trillion dong.



Luxshare-ICT

Luxshare-ict Vietnam Co., Ltd. belongs to a multinational corporation originating from China, Luxshare-ict has built a large-scale production factory at locations in Bac Giang province, Nghe An operating in the field of manufacturing. electronic components manufacturing sector. Although Luxshare is not famous in the international market, but as the first Chinese enterprise to become an assembly partner for Apple, Luxshare first appeared in the top 200 of Apple's top suppliers in 2013 as an assembly partner. connector supplier; to 2017 is the assembly of AirPods, to 2019 is the Apple Watch and to the present is the iPhone. Luxshare has not been around for long and only invested in Vietnam in 2019 but has competed directly with Foxconn, Apple's main and long-standing supply partner, making the opponent wary. Total assets of Luxshare-ict Vietnam in 2020 are quite large, about 34.1 trillion VND, net revenue is 27.8 trillion VND.


10M-2021 performance

In the first 10 months of 2021, the manufacturing index of the electronics industry manufacturing computers, electronic products and components increased by 6.4% compared to the same period in 2020. The electronics and components industry in Vietnam despite its late formation, has lift its place in the table of key exporters of electronic goods, from 47th position in 2001 to 11th position in 2020. Investors continue to expand projects which will contribute to promoting the development of the electronics industry and attracting new investors to Vietnam market.