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ICT industry in Vietnam reached over 72 billion USD in revenue

ICT industry in Vietnam reached over 72 billion USD in revenue

Monday 25, 07 2022
In the first 6 months of 2022, the ICT industry in Vietnam made a revenue of over 72 billion USD. This revenue is an increase of 17.8% over the same period in 2021, making up for most of the total revenue of the IT sector.

ICT industry reached 72.5 billion USD in revenue

In the first 6 months of 2022, the ICT industry in Vietnam made revenue of 72.5 billion USD. This result was reported by the Ministry of Information and Communications on 18th July 2022. This revenue is an increase of 17.8% over the same period in 2021, making up for most of the total revenue of the IT industry, which is over 78 billion USD.

ICT industry

Hardware and electronics exports remain the mainstay of the ICT industry. The export turnover of hardware and electronics is estimated at 57 billion USD, up 16.4% over the same period in 2021. In particular, computer exports are estimated at 29.1 billion USD, up 21.8%, and electricity export revenue was estimated at 27.9 billion USD, up 11.2% over the same period in 2021.

Other independent entities such as HSBC also assess that export is the main driving force of Vietnam’s ICT industry. Accordingly, Vietnam is currently the second smartphone producer in the world, accounting for 13% of the total number of smartphones sold worldwide, just behind China with 50%.

Vietnam is also the number one country in the ASEAN region in laptop production. At the same time, Vietnam is also one of the countries that provide microprocessors for assembled electronic devices globally.

The wave of investment and the relocation of electronic equipment production and assembly facilities into Vietnam has also continuously increased sharply in recent years. Not only do familiar investors like Samsung continue to pour more capital, but even Apple-related suppliers have begun to set foot in Vietnam. Accordingly, three Apple product assemblers, Foxconn, Luxshare, and Goertek, have announced large investment plans to increase capacity and increase the use of local workers.

A representative of the Ministry of Information and Communications stated that the number of Vietnam's digital technology enterprises is estimated at 67,300, an increase of 3,422 enterprises compared to December 2021, reaching an approximate rate of about 0.69 enterprises/ 1,000 people. That number is equivalent to 98% of the annual plan of 0.7 enterprises/1,000 people. In 2022, Vietnam aims to reach 70,000 digital technology enterprises. That is also an important component to promote the revenue growth of the entire industry.

Ministry of Information and Communications

According to the Strategy on Development of Vietnam's digital technology industry up to 2025, with orientation to 2030, the goal is to develop 80,000 digital technology enterprises by 2025.

Made-in-Vietnam products in the revenue structure

The ratio of Made-in-Vietnam products value reached more than 26.7% in the revenue structure of the information technology industry. The estimated value of these products is 19.4 billion USD.

This figure is considered low when compared to the value of more than 53 billion USD that FDI enterprises bring through outsourcing and assembly activities.

For years, although Vietnam has always been among the major electronics exporters in the world, most of the industry's value comes from foreign-invested enterprises. Corporations from Japan and Korea play the leading role among such enterprises.

HSBC's assessment also pointed out that much of the success of Vietnam's ICT industry is due to Samsung's investments. Over the past two decades, this company has poured about 18 billion USD into Vietnam. With 6 factories and one research and development (R&D) center, Vietnam is supplying half of Samsung's total phone production.

Vietnam's ICT industry

However, in the long term, especially in order to meet Vietnam's goals of developing the digital economy by 2025, which is 20% of GDP, a further increase in the value of the Made-in-Vietnam products is a must.

Deputy Minister of Information and Communications Phan Tam said that being too dependent on FDI companies will make the ICT industry develop unsustainably. Therefore, it is necessary to promote the Made-in-Vietnam strategy, steering the ICT industry toward being autonomous. By doing so, Vietnam’s digital technology enterprises will master the creative and design stages, which are all stages of high value.

 

Source: kinhtedothi.vn

Compiled by VietnamCredit

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