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Vietnam's Electronic Export Turnover 2000-2008


2008 reached a record 2.75 billion, an increase of 28.2% compared to 2007 (according to statistics of the Ministry of Industry and Trade).

Table 11: Vietnam's electronic export turnover 2000-2008


Unit: Million USD


Year

2000

2001

2002

2003

2004

2005

2006

2007

2008

Turnover

788

595

492

854

1062

1427

1807

2154

2750

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Vietnams Electronic Export Turnover 2000-2008

Source: Statistical Yearbook 2006, 2007 - General Statistics Office

These figures show that although Vietnam's electronics and information technology industry is still young, Vietnamese software electronics manufacturers in recent years have truly demonstrated the export potential of this product.

However, according to some experts of the Vietnam Information Technology Association, the Vietnamese electronics and information technology industry still faces many difficulties such as the low level of expertise of Vietnamese experts, many foreign companies do not trust software products produced in Vietnam, while foreign partners are concerned about copyright infringement. The equipment system is still weak due to lack of large investment, the means of testing and calibration for computer assembly are not guaranteed for consumers...

However, determining a correct development strategy in the future will soon bring the Vietnamese IT - electronics industry out of this situation and will achieve a significant increase in export turnover to maintain the current development direction.

3.2 About export market


Up to now, our country's electronic and information technology products have been exported to over 40 countries and territories, mainly the EU, Thailand, Japan, China, Singapore, India, Korea, and Malaysia.

In 2008, the export turnover to the Thai market reached the highest with over 404.53 million USD, an increase of 9.33% compared to 2007, followed by Japan, with an export turnover of 379.15 million USD, an increase of 40.78%. In addition, some other markets also had quite good growth rates such as: Korea, Malaysia, Cambodia. According to forecasts, Europe will continue to be our country's key export markets for these products.

Vietnam's exports of computers and electronic components to the EU also reached 456 million USD in 2008, up 10% compared to 2007 and accounting for 17.3% of the industry's total turnover. Of which, exports to the Netherlands reached the highest with 206.34 million USD, up 6.2% compared to 2007, followed by Finland with 44.7 million USD, up 10% and to Slovakia with 40.7 million USD, up 90.85%. According to the Ministry of Industry and Trade, the strong increase in exports of electronics and computer components is due to the increasing number of foreign investment projects in this field, including many large-scale projects such as the printer manufacturing project of Canon Corporation and the electronic chip and computer component manufacturing plant of Intel Corporation.

The US is also a major importer of computers, electronic products and computer components from our country, with an import turnover of 301 million USD in 2008, an increase of 9.3% compared to 2007. This is a relatively low growth rate compared to the average of 22%. Exports of computers, electronic products and components to this market in 2008 are slowing down and tending to decrease. In addition, export turnover to some other markets also decreased, such as Switzerland and Taiwan.


3.3 About price


Because this is an industrial product with a high scientific and technological content, on the other hand, our country's exports are mainly carried out by foreign-invested enterprises with parent companies, so the price is relatively stable and at the general price of the world market. Although there have been recent unstable fluctuations, it is the general situation of the world market.

3.4 About commodity structure

The main product of Vietnam's electronics industry is the assembly of consumer electronics (accounting for about 80%). In recent years, the structure of our country's exported electronic and information technology products has been expanded to include hardware and software products. Regarding information technology, we have exported hardware and software, including accounting software, mapping software (ordered by the United Nations)... Regarding electronics, we have exported televisions, picture tubes, and beam steering coils.

The development orientation of electronics enterprises in the coming time is to shift the structure towards developing specialized electronics, including manufacturing products, electronic components, spare parts and auxiliary products for the fields of information technology, telecommunications, medical services, industrial electronics, mechatronics, measurement and automation.

4. Current status of Vietnam's footwear exports.

According to the Vietnam Leather and Footwear Association (Lefaso), Vietnam is ranked as one of the top 10 exporters in the international market today for leather and footwear, in the EU market alone, Vietnam ranks second, just behind China. With the large export turnover achieved and significant contributions to job creation, footwear is determined to continue to be our country's key export item, with a high potential for increasing turnover.


Export through expanding production, diversifying export markets and increasing the value-added content of export products by focusing on investing in product design and model creation.

4.1 Export turnover

During the period 2000-2008, Vietnam's footwear export turnover increased steadily, with an average growth rate of 16% per year. If in 2000, the export turnover only reached 1.47 billion USD, by 2008, this figure reached 4.7 billion USD, more than 4 times higher than in 2000.

Table 12: Vietnam's footwear export turnover 2000 - 2008

Unit: Million USD


Year

2000

2003

2004

2005

2006

2007

2008

Turnover

1471

2260

2691

3038

3595

3994

4700

Source: Statistical Yearbook 2005, 2007 - General Statistics Office


Official Gazette No. 2 , January 15, 2002; Vietnam Economic Times, January 4, 2002 and February 27, 2002 and Socio-economic situation in 2008 - General Statistics Office

4.2 Export quality


In general, footwear products of foreign-invested enterprises are products of relatively high quality, creating a quality reputation for some types of footwear exported in the international market due to equipment and technological level having advantages over domestic enterprises.

Leather shoe enterprises are continuing to invest in new machinery and equipment and technology to improve product quality, train highly skilled technical workers, and invest in product quality management starting from the production stage.


Import raw materials - production process - product acceptance to participate in the international quality standard system ISO 9000.

4.3 Export markets


Currently, Vietnamese footwear products have been exported to over 50 countries, of which the main export markets are EU countries (accounting for about 53.3% of total export turnover in 2008), followed by the US (accounting for 22.8% in 2008).

Previously, Vietnam's footwear export market share to the EU was quite high (accounting for nearly 70% of total export turnover). In recent years, under the impact of the anti-dumping lawsuit on leather-toed shoes, our country's export market share to the EU has decreased sharply. However, the EU is still Vietnam's main export market. The export market share to this market still accounts for a large number because Vietnam's footwear continues to enjoy preferential treatment under the Generalized System of Taxation (GSP) when imported into the EU, up to the end of 2008.

The US continues to be one of Vietnam's major export markets in recent times. In 2008, footwear exports to this country reached over 1 billion USD (according to statistics from the General Department of Customs in 2008). It is forecasted that footwear exports in the coming time will face many difficulties due to the continued impact of the global economic recession, which has reduced the world's demand for imported goods.

International economic integration has contributed to promoting opportunities for the development of the footwear industry, the transfer of technology in a faster cycle, in accordance with the strict requirements of the market. Moreover, footwear is an industry that uses a lot of social labor. By the end of 2008, the whole industry has attracted about

610,000 workers (not including the number of workers in the production of raw materials and workers in small establishments and households, which can be up to 1 million workers)


(labor) accounts for more than 9% of the industrial workforce. This can be considered a comparative advantage with low labor costs.

In addition, the world's leather and footwear industry continues to shift production to developing countries, especially those with favorable investment environments, stable and safe politics. Therefore, Vietnam has become an ideal investment destination for leather and footwear manufacturers. Moreover, with a population of over 80 million people, it is a potential market for the domestic market. With increasingly improved living standards, improved social purchasing power, and the country's increasingly deep integration into the world, tourism development is an opportunity for the leather and footwear industry to develop in the direction of direct export right at home. With the industry's production capacity reaching over 90% of the invested capacity and an average growth rate of 10% per year on two main products: footwear and bags of all kinds, leather and footwear truly deserves to be one of the key export items in the Vietnamese industrial sector.

5. Current status of wood product export


Wooden furniture is currently ranked fifth among the main export items in the industrial sector of Vietnam with an average growth rate of 20% -21%/year. The production level of Vietnamese enterprises in recent times has made remarkable progress, capable of meeting the relatively strict requirements on design, model, and wood origin that do not harm the environment of some demanding markets such as the EU. Wooden furniture has been affirming its solid position in the export structure of Vietnamese goods.


In general, in the industrial sector in particular, with export turnover in 2008 reaching 2.8 billion USD, an increase of 16.5% compared to 2007 (according to data from Vietnam Forestry Corporation VINAFOR, April 2, 2009).

In recent years, the export turnover of the wood industry has had a fairly high growth rate, from 311.4 million USD in 2000 to 2.8 billion USD in 2008 (9 times higher than in 2000). The wood export situation is clearly shown in the chart below:


Wood product export situation 2000-2008

Million USD


2700


2200


1700


1200


700


2000 2001 2002 2003 2004 2005 2006 2007 2008 2008

200


311.1 337


2404.1


1943.1


1561.4


1101.7


500 608.9

2800


year


Source: Statistical Yearbook 2007, General Statistics Office.


Currently, Vietnamese wood products are present in 120 countries, surpassing Thailand and Indonesia to join Malaysia in leading wood exports in Southeast Asia. The US is Vietnam's main export market with an export turnover of 1.049 billion USD in 2008, accounting for 38% of the total turnover of the industry. Japan is Vietnam's second largest wood importer with a fairly high growth rate in turnover in 2008, reaching 371.7 million USD, up 21% compared to 2007. In 2008, wood product exports to


The EU bloc also achieved quite well, reaching 730.15 million USD, up 15.23% compared to 2007, but mainly exported to the UK.

Regarding export markets, in addition to potential markets such as Japan and the EU, exports to the US market still show high growth potential in the coming years because Vietnam has many advantages in terms of cheap labor costs and low import taxes on wooden furniture from our country to the US.

In addition, businesses have also promoted wood products to Middle Eastern markets such as the United Arab Emirates and some other markets such as Norway, Thailand, and South Africa.

Wood products are a product with a large market, competitiveness and product quality that meets the requirements of importers, but the basic difficulty is still the source of imported raw materials and the ability to meet large orders is still limited. Although the whole country currently has 3 million hectares of forest, domestic wood processors and exporters have had to import up to 80% of raw wood. This not only reflects the instability of raw material sources but also shows that the added value of Vietnamese exported wooden products is not high. Therefore, if these limitations can be overcome, wood products will increase the scale of exports in the coming time, truly becoming one of the main export items in the industrial sector of our country.

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