As the global economy continues to navigate a complex landscape, Vietnam’s electronics industry stands at a pivotal juncture, facing both opportunities and uncertainties.

With global growth projected at 2.8% for this year, the same as in 2024, and expected to rise to 2.9% in 2026, the world economy has shown remarkable resilience, says Do Thi Thuy Huong, Executive Board Member of the Vietnam Electronic Industries Association (VEIA).

Against this backdrop, she expects Vietnam’s electronics industry, a key pillar of the country’s semiconductor strategy, to undergo a transformative year in 2025.

Vietnam’s electronics industry is a key pillar of the country’s economy.

On the one hand, Vietnam’s economy is poised for strong growth, with experts forecasting a GDP growth rate between 6.5% and 8%. On the other hand, this growth comes with risks as the industry faces potential challenges stemming from new global tariff policies, particularly those proposed by the U.S.

Despite these uncertainties, the industry has demonstrated impressive performance.

In 2024, the electronics sector generated US$126.5 billion in export revenue, accounting for over one-third of Vietnam’s total exports.

The computer, electronics, and components sector alone recorded US$72.56 billion, marking a 26.6% year-on-year increase, while mobile phones and components reached US$53.9 billion, up 2.9% from 2023.

“This US$17 billion increase over the previous year highlights strong consumer demand, expanding production capacity, and Vietnam’s ability to attract high-value tech investments,” Mrs. Huong states.

From Mrs. Huong’s view, the “China Plus One” strategy presents opportunities for both Vietnamese and Chinese businesses to enhance their supply chain capabilities and foster healthy competition. Businesses must adopt strategies to diversify markets and expand partnerships to mitigate potential risks, she remarks.

Mrs. Huong also comments that the proposal of “global tariff surcharge” by the U.S. could increase costs for Vietnamese exporters, particularly in key markets such as the U.S., Europe, China, and South Korea, which collectively account for nearly 45% of Vietnam’s electronics exports.

The plastics industry in general and the electronics plastics industry in particular will have to deal with sustainable development and circular economy, adds Mrs. Huong. These are the requirements of most export destinations as well as in the domestic market of Vietnam.

“To meet the requirements of buyers from major markets, businesses need to take early preparations to ensure that output products and the entire production process meet the requirements of the environment, governance, and social responsibility,” she explains.

“These are immediate challenges. But if there is early preparation and readiness to respond, the capacity of businesses will be increasingly improved,” she concludes. 

As the global economy continues to navigate a complex landscape, Vietnam’s electronics industry stands at a pivotal juncture, facing both opportunities and uncertainties.

With global growth projected at 2.8% for this year, the same as in 2024, and expected to rise to 2.9% in 2026, the world economy has shown remarkable resilience, says Do Thi Thuy Huong, Executive Board Member of the Vietnam Electronic Industries Association (VEIA).

Against this backdrop, she expects Vietnam’s electronics industry, a key pillar of the country’s semiconductor strategy, to undergo a transformative year in 2025.

Vietnam’s electronics industry is a key pillar of the country’s economy.

On the one hand, Vietnam’s economy is poised for strong growth, with experts forecasting a GDP growth rate between 6.5% and 8%. On the other hand, this growth comes with risks as the industry faces potential challenges stemming from new global tariff policies, particularly those proposed by the U.S.

Despite these uncertainties, the industry has demonstrated impressive performance.

In 2024, the electronics sector generated US$126.5 billion in export revenue, accounting for over one-third of Vietnam’s total exports.

The computer, electronics, and components sector alone recorded US$72.56 billion, marking a 26.6% year-on-year increase, while mobile phones and components reached US$53.9 billion, up 2.9% from 2023.

“This US$17 billion increase over the previous year highlights strong consumer demand, expanding production capacity, and Vietnam’s ability to attract high-value tech investments,” Mrs. Huong states.

From Mrs. Huong’s view, the “China Plus One” strategy presents opportunities for both Vietnamese and Chinese businesses to enhance their supply chain capabilities and foster healthy competition. Businesses must adopt strategies to diversify markets and expand partnerships to mitigate potential risks, she remarks.

Mrs. Huong also comments that the proposal of “global tariff surcharge” by the U.S. could increase costs for Vietnamese exporters, particularly in key markets such as the U.S., Europe, China, and South Korea, which collectively account for nearly 45% of Vietnam’s electronics exports.

The plastics industry in general and the electronics plastics industry in particular will have to deal with sustainable development and circular economy, adds Mrs. Huong. These are the requirements of most export destinations as well as in the domestic market of Vietnam.

“To meet the requirements of buyers from major markets, businesses need to take early preparations to ensure that output products and the entire production process meet the requirements of the environment, governance, and social responsibility,” she explains.

“These are immediate challenges. But if there is early preparation and readiness to respond, the capacity of businesses will be increasingly improved,” she concludes.