Global challenges and domestic adjustments put strain on electronics industry; major players wrestle with external factors and domestic shifts in market dynamics.

Vietnam's Electronics Industry Navigates Global Trade Tensions Amidst Impressive Export Growth

Ha Noi, Vietnam - As Vietnam's electronics industry records an impressive US$47 billion in exports within the first four months of 2025, the sector confronts mounting pressure from escalating global trade tensions. Particularly, the potential imposition of retaliatory tariffs by the United States on Vietnamese electronics, computers, and semiconductor products looms as a threat to the nation's billion-dollar export sector.

The complex landscape calls for heightened competitiveness and reduced reliance on foreign-invested enterprises, a critical measure to safeguard the industry's growth and maintain its momentum. According to the General Statistics Office, the export of computers, electronic components, and equipment surpassed $29 billion, while phones and accessories generated nearly $18 billion during the same period. However, foreign-invested enterprises account for 85% of the export value to the United States. Domestic firms are lagging behind in terms of technological capacity, financial resources, and global supply chain integration.

Standing out amidst local enterprises is Hanel Production, Processing, and Import-Export Joint Stock Company (Hanel PT). Transitioning from a subcontracting firm to an OEM/ODM service provider, Hanel PT now oversees the entire process, from design and production to quality control. The company was recently awarded the 2025 Quality Award by the globally renowned Brother Group in electronic equipment manufacturing. Trần Đức Tùng, the deputy general director of Hanel PT, stated that such international recognition marks a significant milestone in the company's journey, bolstering its reputation and providing access to global customers while acknowledging its commitment to cutting-edge technologies, quality management, and international integration.

In response to trade uncertainties, local firms have been proactively diversifying their export markets to avoid over-reliance on the US. Thanh Gioi Communications and Computers JSC's general director, Lại Hoàng Duong, emphasized expanding into other countries to mitigate risk in the face of tariff shifts and focuses on improving product quality to meet international market standards. Duong added that the company pursues a flexible strategy, investing in research and development, upgrading technology, optimizing production management, and refining costs while collaborating closely with both domestic and international authorities to stay informed on policy changes and adjusting their production plans accordingly.

Deputy Prime Minister Nguyễn Chí Dũng (third from left) and Bắc Ninh provincial leaders visit the production line at Hanel Production, Processing and Import-Export Joint Stock Company (Hanel PT) in Tiên Sơn Industrial Park, Bắc Ninh Province. - VNA/VNS Photo

In a critical juncture for businesses and the economy, Việt Nam Electronic Industries Association (VEIA) executive committee member and vice president of the Việt Nam Supporting Industries Association, Đỗ Thị Thúy Hương, underscored the importance of enhancing localization, developing domestic production, improving product quality, and optimizing costs to ensure Vietnamese goods remain competitive in any market. Hương suggested that Vietnam should focus on three pillars for long-term resilience: investment in technology, human capital development, and financial independence.

Vietnamese officials are working diligently to implement policies that will support enterprises and assist the Government in trade negotiations with the US. These measures include enhancing supply chain transparency, committing to prevent illegal transshipments, increasing imports of US-made components to rebalance trade, and introducing preferential credit and tax reductions for affected companies.

The enrichment data provides additional context, highlighting the strategies being employed by Vietnamese companies to enhance their competitiveness and reduce reliance on foreign-invested enterprises. These strategies involve investment in automation and AI-powered production tools, diversification of export destinations, strengthening regional alliances, development of local talent, promoting the domestic semiconductor industry, encouraging local innovation, enhancing trade agreements and infrastructure, and implementing sustainable practices. These strategies aim to position Vietnam as a major player in the electronics industry, leveraging its cost advantages, skilled workforce, and favorable business environment to curtail dependency on foreign investments.

Workers operate in an electronic component manufacturing factory in Hưng Yên Province - VNA/VNS Photo

To mitigate the impact of escalating global trade tensions, local firms in Vietnam's electronics industry are diversifying their export markets, aiming to avoid over-reliance on the United States.
Thanh Gioi Communications and Computers JSC, a prominent local firm, is focusing on improving product quality to meet international market standards and pursuing a flexible strategy that includes investing in research and development, upgrading technology, and optimizing production management.
The Việt Nam Electronic Industries Association (VEIA) highlights the significance of enhancing localization, developing domestic production, and optimizing costs to ensure Vietnamese goods remain competitive in any market.
Vietnamese officials are implementing policies to support enterprises, such as enhancing supply chain transparency, preventing illegal transshipments, increasing imports of US-made components, and offering preferential credit and tax reductions for affected companies.
In an effort to reduce reliance on foreign-invested enterprises, domestic firms are embracing investment in automation, AI-powered production tools, and developing local talent.
To secure long-term resilience, Vietnam should focus on investment in technology, human capital development, and financial independence, as suggested by VEIA executive committee member, Đỗ Thị Thúy Hương.
Amidst trade uncertainties, companies like Hanel Production, Processing, and Import-Export Joint Stock Company (Hanel PT) aim to strengthen regional alliances, promote the domestic semiconductor industry, encourage local innovation, and implement sustainable practices to position Vietnam as a major player in the electronics industry.
The government is committed to assisting the economy and its businesses by optimizing the business environment and fostering a robust education-and-self-development, career-development, and job-search ecosystem to empower local talent.
In the era of rapid technological development, personal-finance management and investing become crucial for individuals and businesses in Vietnam to navigate financial uncertainties and leverage growth opportunities in the electronics industry.

Global challenges and domestic adjustments put strain on electronics industry; major players wrestle with external factors and domestic shifts in market dynamics.