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Electronic industry development: What strategy for Vietnam?
06/02/2023
Vietnam is facing an opportunity that can be called a 'one in a hundred years' to be able to develop and deeply participate in the global value chain and supply chain of the information technology, electronics and telecommunications industries. pine.
 
Why should the development of the electronics industry be prioritized ?



After more than 35 years of implementing the renovation policy, our country has become a middle-income developing country. However, economic growth is not sustainable, tends to decrease gradually over a 10-year cycle and risks falling behind, falling into the middle-income trap. Internal resources of the economy are still weak, labor productivity is low, and improvement is slow; independent capacity, low autonomy, heavily dependent on the foreign direct investment sector. Unsustainable industrial development, low added value; the structure of industries has been slowly transformed, mainly focusing on the simple mining, processing and assembly industries with high labor intensity; have not yet developed fundamental industries that play a leading role, are able to compete and deeply participate in regional and global value chains.
Resolution No. 23-NQ/TW dated March 22, 2018 of the Politburo on orientations to develop national industrial development policies up to 2030, with a vision to 2045 defining the development of information technology industry , the electronics industry is the key path, and aims to reach the world's advanced level by 2030, meeting the requirements of the fourth industrial revolution in order to create a technological foundation. numbers for other industries. This is also the path that East Asian countries have taken before in the process of industrialization such as Japan, Korea, Taiwan and more recently China.

The reason that the information technology and electronics industries play a particularly important role in leading the structural transformation of a country's industries in the process of industrialization is because it possesses important economic characteristics, including: (1) increased demand as real income per capita increases, (2) high potential for productivity improvement, (3) spillover effects high compared to other economic sectors. These are also objective economic criteria for selecting priority industries for development.

Resolution No. 52-NQ/TW dated September 27, 2019 of the Politburo on a number of guidelines and policies to actively participate in the Fourth Industrial Revolution defining the information technology and electronics industries. - Telecommunications is one of the industries with a high level of readiness that needs to be prioritized for development.
Decision No. 157/QD-TTg dated February 1, 2021 of the Prime Minister promulgating the National Product Development Program to 2030 identifying the information technology, telecommunications and electronics industries as industries are given priority to consider and select products for investment and development.

What opportunities for Vietnam's electronics industry ?



Vietnam is facing an opportunity that can be called "once in a hundred years" to be able to develop and deeply participate in the global value chain and supply chain of the information technology, electronics and telecommunications industries. 
Firstly, the requirement to restructure the global supply chain and value chain due to the US-China trade war, the Russia-Ukraine war and the impact of the Covid-19 pandemic, with geopolitical advantages, The stability of the macro-economy, the openness of the large economy have turned Vietnam into a potential destination, an ideal production base for multinational corporations, helping to open up opportunities for Vietnam. Nam will further promote foreign direct investment attraction and deepen its participation in the global supply chains and value chains in the information technology, electronics and telecommunications industries.
Secondly, with a population of more than 90 million people, per capita income is constantly improving, creating a domestic market large enough and attractive enough for Vietnam to flexibly choose a development strategy. suitable industry on the basis of simultaneously exploiting domestic and foreign markets in order to successfully implement the "Make in Vietnam (1) " strategy with a focus on developing information technology, electronic - Domestic telecommunications has the ability to dominate the domestic market, aiming to increase the proportion of domestic enterprises' contribution in the export structure of the information technology and electronics-telecommunications industries.
Third, with a young population in the period of the golden population structure, Vietnam has the potential to develop human resources to meet the development requirements of the information technology, electronics and telecommunications industries. Along with that is the maturity of the second generation of well-trained entrepreneurs at home and abroad, inheriting favorable conditions in terms of capital, experience and relationships to be able to diversify investment portfolios. to the fields and professions based on technology and knowledge of which the information technology, electronics and telecommunications industries are typical. At the same time, with a force of Vietnamese experts and scientists living and working abroad, especially in Silicon Valley, the United States is a resource that plays a very important role in industrial development. information technology, electronics and telecommunications in the coming period.

What strategy for the development of Vietnam's electronics industry?

Resolution No. 23-NQ/TW dated March 22, 2018 sets a target that by 2030 the information technology and electronics industries will reach the world's advanced level, meeting the requirements of the revolution. The fourth industrial network aims to create a digital technology platform for other industries. On September 3, 2020 the Government issued Resolution No. 124/NQ-CP promulgating the Government's Action Program to implement Resolution No. 23-NQ/TW, assigning the Ministry of Information and Communications to develop and submit The Prime Minister approved the Program on development of the information technology, electronics - telecommunications industry until 2025, with a vision to 2030 2025, with a vision to 2030 at the request of the Ministry of Information and Communications).
From now to 2030, there are only 8 years left, and in order to realize the above goal, Vietnam must have a breakthrough approach, taking full advantage of the following country's advantages; synchronously develop a system of domestic and foreign enterprises, in which the focus is on developing domestic enterprises; directly go into research, design and production in Vietnam on the basis of effectively exploiting the force of Vietnamese experts and scientists in countries with advanced industries, especially experts. , a scientist living in Silicon Valley, California, USA (2) to overcome the shortcomings of experience and technology, thereby allowing Vietnam to go faster, quickly catching up with advanced countries.
In the past time, Ho Chi Minh City Hi-Tech Park (SHTP) has formed an expert group including domestic and foreign businessmen, experts, scientists to discuss (3) , consult on a breakthrough and feasible approach for Vietnam to realize the goals of Resolution No. 23-NQ/TW on the development of the information technology industry, the electronics and telecommunications industry and semiconductor circuit. Initially, the group proposed an approach associated with specific strategic breakthroughs as follows:
Regarding human resources, combining state and private resources, in which private resources are fundamental, is decisive to attract Vietnamese experts and scientists in industrialized countries. advanced, especially Vietnamese who are living and working in Silicon Valley, the United States return home to participate in building and developing information technology, electronics - telecommunications businesses, helping businesses in countries can directly participate in the research, design and production of products that meet international standards and standards and thus have the ability to penetrate and compete in regional and global markets. Overseas Vietnamese experts and scientists are important and breakthrough agents that help connect with customers and partners in foreign markets, especially helping to strengthen and accelerate the process of technology transfer.
The team of experts and scientists plays an important and breakthrough role in the development of the information technology, electronics - telecommunications industry, especially in the early stages, however, domestic human resources, especially The strategic force of domestic entrepreneurs, experts and scientists is fundamental, long-term and decisive. Therefore, at the same time as attracting a team of Vietnamese experts and scientists abroad, Vietnam needs effective solutions to develop human resources, research and development capacity, and innovation. creativity of domestic enterprises on the basis of linking and maximizing the capacity of a team of Vietnamese experts and scientists abroad, such as inviting this team to participate in programs, projects and projects. conducting national key and important research, participating in teaching, guiding students and students to implement topics,
The State needs to open new and expand the scale of postgraduate and university training in fields and fields related to information technology, electronics - telecommunications; invest in capacity building of existing research institutes and form research institutes specialized in information technology, electronics - telecommunications and related industries. In order to improve the research and development capacity of enterprises, it is necessary to combine simultaneously the promotion policies of the State through programs, schemes and projects on human resource development and investment. for research and implementation and institutionalization of mechanisms and policies to create a fair and healthy competitive investment and business environment in the country in accordance with the market mechanism for the domestic market to create traction for investment in research activities,
Regarding technical infrastructure, in order to promote the formation and development of domestic enterprises in the field of information technology industry, electronics - telecommunications have the ability to go directly into the research, design and manufacture of products. products, especially products of great value (4) capable of competing in the international market, in addition to attracting and developing human resources capable of designing products that meet standards and standards. According to international standards, Vietnam needs to encourage domestic investors, especially pioneers, aspirational and spiritual investors for the development of the nation and nation, to invest in building supply factories. Electronic manufacturing service provider capable of manufacturing a wide range of products with small series in the fields of consumer electronics, telecommunications, healthcare, automotive industry and security and defense(5) (hereinafter referred to as HMLV-EMS) reaching the international level by overseas Vietnamese experts participating in the design, management and operation, at least for the first stage in order to acquire and transfer transferring technology, knowledge about research, design and production into the country, first of all in Ho Chi Minh City, the economic locomotive of the country.
HMLV-EMS is capable of providing Original Equipment Manufacturer (OEM) and Original Equipment Designer (ODM) services as the essential infrastructure for can create a breakthrough development for the ecosystems of information technology, electronics and telecommunications. Specifically, HMLV-EMS will help start-up businesses: (1) Consult and design products that meet international standards and regulations, (2) Experimental production at international level with low cost. low, (3) Connecting, consulting, supporting technology transfer, (4) Supporting information and bringing products to international markets, (5) Training and developing human resources to meet requirements development, especially human resources capable of researching and developing products.
In terms of institutions, develop unified and synchronous mechanisms and policies towards creating a fair and healthy competitive business and investment environment in line with the market mechanism, allowing Vietnam to effectively strategic results “localization with international competition (6)", which means developing products based on the domestic market but aiming to serve the global market, thereby effectively exploiting the domestic market and the markets of countries with which Vietnam has natural trade relations. bilaterally and multilaterally. Mechanisms and policies to support the development of the information technology, electronics - telecommunications industry must be consistent with the market mechanism and comply with the terms of international commitments to which Vietnam has participated. fair and equal competition among economic sectors, thereby helping to form and develop a system of strong domestic enterprises. State investment to develop these industries plays a supportive role, encouraging the participation of the private sector based on the principles of competition and efficiency, focusing mainly on creating a favorable business environment,

Khu Công nghệ cao Thành phố Hồ Chí Minh (SHTP) ký kết hợp tác với Cục an ninh mạng và Phòng chống tội phạm công nghệ cao (A05) thúc đẩy phát triển các sản phẩm điện tử lưỡng dụng.

Ho Chi Minh City Hi-Tech Park (SHTP) signed a cooperation agreement with the Department of Cybersecurity and High-Tech Crime Prevention (A05) to promote the development of dual-use electronic products.

Vietnam needs to quickly develop and promulgate a Law on Industrial Development (drafted by the Ministry of Industry and Trade), a Law on Digital Technology Industry Development (Drafted by the Ministry of Information and Communications), and at the same time elaborating and promulgating spatial and development plannings, strategies and plans for development of information technology, electronics - telecommunications industries. Spatial planning for the development of these fundamental industries must be suitable to the strengths and specificities of each locality and region. Ho Chi Minh City, with its role and position as the economic locomotive of the country, as the center of education, science, technology and innovation of the whole country, must be the pioneer to go straight to the valuable stages. high added value of the global value chain in the information technology, electronics-telecommunications

1. Research, design and manufacture in Vietnam.
2. There are about 500,000 Vietnamese people living and working in Silicon Valley, of which over 10%, equivalent to 50,000 people are engineers who have been working at high-tech companies such as Apple, Intel, IBM, Sun Microsystems, Cisco…
3. Implementing the policy of the leaders of Ho Chi Minh City, in 2022 Ho Chi Minh City High-Tech Park (SHTP) has launched many initiatives to promote the development of electronic and industrial industries. semiconductor IC, specifically:
-Signed a human resource training cooperation agreement with Synopsys Corporation, under which Synopsys Company sponsored 30 IC design software for 3 years (worth tens of millions of dollars) and supported the establishment of the City Hi-Tech Park. Circuit Design Center (https://dangcongsan.vn/khoa-hoc/tao-dieu-kien-phat-trien-cong-nghiep-ban-dan-tai-viet-nam-618240.html).
-Established the Circuit Design Department under the IC Design Center (https://dangcongsan.vn/khoa-hoc/ra-mat-trung-tam-thiet-ke-vi-mach-tai-khu-cong) -listen-cao-tp-ho-chiminh-622596.html).
-Coordinating with the Department of Information Technology Industry - Ministry of Information and Communications to organize a workshop on mechanisms and policies for the development of the semiconductor industry (https://www.hcmcpv.org.vn/tin) -tuc/nang-cao-vi-tri-cua-viet-nam-in-chuoi-gia-tri-cong-nghiep-vi-mach-ban-dan-the-gioi-1491900495).
-Coordinating with Young Entrepreneurs Association to organize a Seminar on the development of Vietnam's electronics industry (https://dangcongsan.vn/khoa-hoc/phat-trien-cong-nghiep-dien-tu-co-hoi- va-chien-luoc-nao-cho-viet-nam-627916.html).
4. High-end products.
5. High-mixed, Low volume Electronics Manufacturing Services (EMS) factory.
6. Localization with international competition.
Nguyen Anh Thi - Head of Management Board of Ho Chi Minh City Hi-Tech Park (SHTP)

Source of Great Solidarity http://daidoanket.vn/phat-trien-cong-nghiep-dien-tu-chien-luoc-nao-cho-viet-nam-5708422.html

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