I. Overview of computers, electronic components manufacturing, consumption and manufacturing technology in Vietnam

1. Production and consumption

*Production: In March 2020, production of computers and electronic components of domestic enterprises continued to show an upward trend compared to the previous month. According to the General Statistics Office, the product with the highest production of the month was electrical equipment for telephone, telegraph and electronic information systems with 41.8 million units, a rise of 23.90%; production of television camera lens; image converter and image enhancer; other photovoltaic anode tubes reached 19.5 thousand units, an increase of 13.59% … The index production of electronic products, computers and optical products increased by 23.7% compared to previous month, increased by 17.5% compared to March 2019.

* Tiêu thụ: Tháng 02/2020 tiêu thụ sản phẩm điện tử của Vietnamchủ yếu theo xu thế giảm so với tháng 01/2020,  sản phẩm được tiêu thụ nhiều nhất trong tháng là Thiết bị điện dùng cho hệ thống đường dây điện thoại, điện báo và hệ thống thông tin điện tử, giảm 1,99%; theo sau là Óng camera truyền hình; bộ chuyển đổi hình ảnh và bộ tăng cường hình ảnh; ống đèn âm cực quang điện khác, giảm 21,05%; Loa đã hoặc chưa lắp vào hộp loa đứng thứ 3 về tiêu thụ nhưng chỉ tăng 1,12%%…

*Consumption: In February 2020, there was a downward trend in the consumption of electronic products in Vietnam compared to January 2020. The most consumed product in the month was electrical equipments for power transmission lines. telephone, telegraph and electronic information systems with a decline of 1.99%; followed by TV camera lens; image converter and image enhancer; other photovoltaic cathode lamp tube fell by 21.05%; the consumption of speakers installed or not in the box ranked the 3^rd largest but only increased by 1.12 %% …

 

Table 1: The production index of electronic products, computers and optical products

Industries	Mar 2020 compared to previous month (%)	Mar 2020 compared to Feb 2019 (%)	3 months in 2020 compared to 3 months in 2019 (%)
Manufacturing electronic products, computers and optical products	123,7	117,5	114,3
Manufacturing electronic components	103,6	112,3	113,7
Manufacturing communication equipments	128,5	119,8	115,1
Manufacturing consumer electronic products	121,3	107,7	99,2

(Source: The General Statistics Office)

Table 2: Production quantity of computers, electronic components in March and 3 months in 2020S

	Products		Unit of measurement		Mar 2020		Compared to Feb 2020 (%)		Compared to Mar 2019 (%)		3 months in 2020		Compared to  3 months in 2019 (%)
	Electrical equipments used for telephone lines, telegraph lines and electronic information systems		Million Dong		41.829.465		23,90		76,67		110.518.421		35,46
	Television Camera lenses; image signal converter and image quality enhancer; Photocathode lamps		Pcs		19.533.759		13,59		-10,91		60.189.638		-14,29
	Speakers with or without speaker box		Pcs		18.875.215		-9,20		6,77		57.423.709		25,70
	Electronic component manufacturing service		Million Dong		9.727.793		3,75		16,44		27.320.995		21,04
	Headsets without microphone		Pcs		4.451.360		0,05		-28,55		14.415.923		-26,39
	Television sets		Pcs		1.497.724		38,28		21,52		3.535.248		-0,43
	Uncategorized circuit protective devices for voltage not exceeding 1000 V		Pcs		1.076.987		1,33		13,71		3.215.575		14,45
	Electronic displays (except the type used for automatic data processing machines)		Pcs		1.191.552		40,49		23,02		3.053.304		20,77
	Uncategorized parts for electronic components		Kg		919.332		5,27		7,38		2.681.058		6,89
	Uninterruptible Power Supply used for automatic data processing machines, their auxiliary machines and telecommunication equipments		Pcs		788.719		-1,53		10,15		2.377.445		32,87
Manufacturing electric wires and cables service		Million Dong		943.355		21,36		-2,45		2.336.632		-9,02
Tablets below 3 milion dong		Pcs		989.109		102,99		0,64		2.240.877		-21,60
Intergrated circuits		1000 Pcs		721.970		-1,06		18,16		2.140.801		22,89
Tablets from3 to under 6 million dong		Pcs		319.381		117,41		-10,92		677.649		-18,68
Office offset printers		Pcs		125.450		25,74		-16,99		320.433		-16,31
Tablets from 6 to under 10 million dong		Pcs		93.577		0,59		244,73		275.841		-3,41
Batteries		1000 Pcs		30.356		-0,30		-13,83		87.385		-10,25
Copper single strand insulated electric wire		Ton		25.272		-2,50		8,18		77.788		9,53
Electric cables for voltages ≤ 1000V		Ton		13.698		1,25		0,84		38.570		4,56
Other copper electric cables and wires		Ton		10.742		3,64		0,69		31.491		-0,77
Printer parts using components such as dies, rollers, and other printing parts, except Office offset printers		Ton		1.244		4,30		-8,73		3.488		-0,16
Parts of computers, cash registers, postage-free stamp machines, ticket machines and other similar machines with calculating capabilities (except vending machines, ATMs …)		Ton		120		10,25		-11,57		326		-16,36
electric or electronic lamps, light bulbs, vacuum or flash lamps with a glass enclosure; machines for manufacturing hot glass or glassware		Ton		32		9,59				99
Lead-acid battery to start the piston generator		1000 Kwh		22		19,79		-30,95		56		-14,83

(Source: Data compiled of Preliminary statistical data of the General Statistics Office and Statistics Offices.)

 

Table 3: Consumption of computers and electronic components

Feb 2020 and first 2 months in 2020

Products	Unit of measurement	Feb 2020	Compared to Jan 2020 (%)	Compared to Feb 2019 (%)	2 months in 2020	Compared to  2 months in 2019 (%)
Electrical equipments used for telephone lines, telegraph lines and electronic information systems	Million Dong	37.113.334	-1,99	65,38	74.979.773	42,55
Televition camera lenses; image signal converter and image quality enhancer; Photocathode lamps	Pcs	17.082.486	-21,05	-19,50	38.718.308	-17,71
Speakers with or without speaker box	Pcs	18.902.065	1,12	41,88	37.595.203	16,67
Electronic component manufacturing services	Million VND	9.315.955	21,06	46,29	17.011.026	21,47
Headphone without microphone	Pcs	3.960.933	-25,61	-30,20	9.285.463	-28,43
Uncategorized circuit protective devices for voltage not exceeding 1000 V	Pcs	1.098.078	4,16	25,87	2.152.334	7,80
Television sets	Pcs	855.690	-28,54	-7,13	2.053.138	-13,35
Electronic displays (except the type used for automatic data processing machines)	Pcs	934.538	0,60	37,52	1.863.492	19,47
Uncategorized parts of other electronic components	Kg	866.741	-3,08	16,05	1.761.055	5,51
Uninterruptible Power Supply (UPS) used for automatic data processing machines, their auxiliary machines and telecommunication equipments	Pcs	747.296	-10,31	53,11	1.580.513	44,63
Manufacturing electric wires and cables service	Million VND	777.327	26,20	17,01	1.393.278	-12,98
Tablets with price below 3 million VDN	Pcs	532.424	-30,64	-27,20	1.300.022	-32,52
Intergrated circuits	1000 Pcs	475.756	6,66	64,14	921.795	32,67
Tablets with price from 3 to under 6 million VDN	Pcs	156.967	-26,24	19,69	369.784	-26,91
Office offset printers	Pcs	96.725	3,42	-5,40	190.249	-16,45
Tablets from 6 to under 10 million dong	Pcs	94.605	-0,30	-4,84	189.495	-27,16
Batteries	1000 Pcs	30.216	5,64	-4,53	58.818	-9,90
Copper single strand insulated electric wire	Tons	24.242	-1,31	19,11	48.806	10,24
Electric cables for voltages ≤ 1000V	Tons	14.938	20,73	50,55	27.311	17,87
Other copper electric cables and wires	Tons	10.780	-1,21	18,06	21.691	3,47
Printer parts using components such as dies, rollers, and other printing parts, except Office offset printers	Tons	1.151	10,25	67,93	2.194	4,82
Parts of computers, cash registers, postage-free stamp machines, ticket machines and other similar machines with calculating capabilities (except vending machines, ATMs …)	Tons	107	8,67	15,11	205	-9,81
electric or electronic lamps, light bulbs, vacuum or flash lamps with a glass enclosure; machines for manufacturing hot glass or glassware	Ton	29	-21,93		67
Electrical equipments used for telephone lines, telegraph lines and electronic information systems	Million Dong	37.113.334	-1,99	65,38	74.979.773	42,55

(Source: Data compiled of Preliminary statistical data of the General Statistics Office)

Despite strongly affected by Covid-19, the production of electronics, computers, and optical products in the first 3 months increased by 14.3% over the same period. The inventory index of products in this group rose by 4.5%.

The first phase of the first quarter, the electronics industry was also seriously affected by the supply sources that depend on China and other countries where the epidemic was breaking out, thus disrupting the production schedule. In addition, border control measures to prevent the epidemic will have an impact on the input sources for production as well as consumer markets in Vietnam’s electronics industry.

The supply of raw materials has been partly met although it is still not as required because some border gates are still applying epidemic control measures. In addition, enterprises have sought to diversify sources of supply besides China. However, it is not easy to find alternative sources of supply as costs are high and sources are unstable in quantity and quality in the context of production specialization in the current global chain and the distinctive feature of electronics production.

According to the Ministry of Industry and Trade, the electronics manufacturing industry in Vietnam could be hit hard in the next quarters of 2020 due to complicated developments of the epidemic, thus consumption demand for electronic products in the US and Europe, Vietnam’s main export markets are likely to reduce.

* World consumption: due to the impacts of the epidemic, the consumption of some electronic components, computers have increased because of the increased demand for services used to work remotely and work from home to prevent the spreading of the diseases.

DRAMeXchange forecasted market demand for DRAM and SSD mobile hard drives for businesses

RAMeXchange said that the supply of server DRAM is now tight and inventory levels at both suppliers and customers are low. Due to social isolation, it requires to work from home, the demand for teleworking, and cloud services have also driven up demand for enterprise SSDs (mobile solid-state drives) and overwhelmed NAND suppliers. If the epidemic situation is not positive, this demand will continue to increase in the second quarter with ASPs riding 10-15% higher than the previous quarter. Whether or not the NAND market is in shortage or oversupply in H2 depends on whether or not coronavirus infections are receding or growing.

According to DRAMeXchange, server demand for DRAM in the second quarter will increase by 20% compared to the second quarter and SSD price in the second quarter will increase by 10-15% compared to the previous quarter.

2. Electronics manufacturing technology

* Apple and Google work together to track the spread of coronavirus

Apple and Google two companies will launch developer tools (called APIs) in May, which will enable interoperability between Android and iOS devices using apps from the public health authorities. The applications will launch on the iTunes App Store and Google Play Store.

Experts started to call on the private sector to help track the spread of coronavirus using so-called syndromic surveillance, a technique that can be used to track pandemics. Technology companies are particularly well-positioned to do that, because most people in the United States own a phone where the app can be installed, and also because of government funding. The United States government funding for syndromic surveillance has dried up.

A press release announcing their partnership said Google and Apple were announcing joint efforts to allow the use of Bluetooth technology to help the US government and health agencies reduce the spread of the virus, with user privacy and security central to the design.

In the next two months, Apple and Google will work to enable a broader Bluetooth-based contact tracing platform by building this functionality into the underlying platforms, Apple said in a press release.

Google’s site said the apps would not collect personally identifiable information or user location data and people who test positive are not identified to other users Google or Apple. Apps would store locations for about 14 days. The data would only be used for contact tracing by public health authorities for COVID-19 pandemic management, Google said.

Apps have been used in other countries, like Singapore, where phones with contact tracing apps record encounters between people and store data in phones for 21 days. In Singapore, Bluetooth signals record when people are near one another but the locations of folks using the app is not collected.

“Privacy, transparency, and consent are of utmost importance in this effort, and we look forward to building this functionality in consultation with interested stakeholders. We will openly publish information about our work for others to analyze,” the companies said.

Alphabet’s Verily also has a site that directs people to local testing locations in the San Francisco area, including San Mateo and Santa Clara counties. Separately, Google has its own COVID-19 informational site. It also helped New York State create an online unemployment application. Google is also already helping public health officials to track whether social distancing mandates are being followed.

3. Opportunities for cooperation, investment, and technology transfer with CPTPP members

* Vietnam actively connected with Singapore Industries Association to increase export opportunities

Amid COVID-19 outbreak through the globe, Vietnam is also one of the markets that suffered heavily, resulting in economic losses, sharp decline of imports and exports, the Vietnam Trade Office has actively connected with industry associations of the host country and those in Vietnam in order to support Vietnamese firms in taking advantage of opportunities to boost their exports to Singapore.

Apart from organizing field trips for Singaporean fruit and vegetable importers to Vietnam to seek supply sources in February, the office has also continued to collect information related to the public procurement demand of the Singapore Government, and actively implemented trade promotion and business matching activities.

Additionally, the Vietnam Trade Office in Singapore also endeavored for business matching through the Trade Portal and social networking services to boost exports to Singapore.

About 20 orders have been signed by partners in many different fields. According to the statistics of Singapore Enterprise Department, Vietnam’s export value to Singapre in February 2020 increased by 49% compared to January 2020 and increased 102.78% compared to the same period in 2019.

To catch up with the global trend as well as take advantage of opportunities for export promotion, the Vietnam Trade Office in Singapore also raised a proposal to the representative office of Vietnam Airlines in Singapore to support Vietnamese export enterprises.

Vietnam Airlines also fully agreed and complied with the regulations of borders closing set by two countries to control and limit the spread of the disease COVID-19, specifically, it will cancel all flights serving passengers from Vietnam to Singapore and vice versa.

However, to maintain flights on transporting essential goods and supplies between the two countries, Vietnam Airlines still ensure trade exchange between the two countries. The airline also has special offers on lower shipping rates for orders of Vietnamese businesses exporting to Singapore.

II. Imports and exports of electronics products between Vietnam and CPTPP members.

1. Exports

1.1. Overview of exports with CPTPP members

Domestic enterprises are actively exporting electronic components to traditional markets such as China, the United States, Japan and expanding market share, boosting export of computers and electronic components to other markets, other countries and regions like some of CPTPP member countries.

According to the General Department of Customs, the export turnover of computers and electronic components in March 2020 reached over 3.68 billion USD , a rise of 34.52% over the previous month, and a rise of 30.56% compared to March 2019. In the first 3 months of 2020, total export turnover of computers and electronic components reached 9.08 billion US $ , up 27.54% over the same period last year, and accounted for over 14.36% of total export turnover of goods of our country.

Exports of these products to some countries in the CPTPP group reached US $ 335.8 million, accounting for 9.1% of the country’s export turnover of computers and electronic components, an increase of 16.6% compared to the previous month and of that of 14.5% compared to the same month in 2019. Thus, in the first 3 months of this year, total export turnover of this commodity reached 875.6 million USD, a rise of 8.3% over the same period in 2019. In March 2020, Japan remained a market with the largest export turnover, accounting for 34.9% of total exports; followed by Mexico, Singapore Malaysia … The export turnover of these markets reached over 30 million USD.

Table 4: The Viet Nam’s export turnover of electronic products to CPTPP members in March 2020 and in 3 months of 2020

 

Thị trường	Mar 2020  (Million USD )	Compared to Feb 2020 (%)	Compared to Mar 2019 (%)	3 months in 2020 (Million USD )	Compared to 3 months in 2019 (%)	Proportion of Mar 2020 to  CPTPP (%)	Propotion of Mar 2020 to  Vietnam(%)
Total Vietnam’s export of electronic products	3.687.752.203	34,5	30,6	9.081.867.651	28,7	*	100,0
Including  CPTPP Group	335.842.806	16,6	14,5	875.623.606	8,3	100,0	9,1
Japan	117.160.776	28,3	38,0	288.233.419	25,4	34,9	3,2
Mexico	86.524.541	26,9	68,8	220.159.465	25,6	25,8	2,3
Singapore	36.514.852	28,0	-32,5	86.535.313	-35,8	10,9	1,0
Malaysia	35.919.911	1,0	-4,1	109.526.972	12,9	10,7	1,0
Australia	27.500.161	-2,0	-31,5	80.947.638	-17,3	8,2	0,7
Chile	16.236.297	11,0	355,3	34.772.905	119,9	4,8	0,4
Canada	12.762.595	-28,5	-25,8	45.164.441	-0,4	3,8	0,3
New Zealand	3.223.673	-19,8	-33,0	10.283.453	-16,2	1,0	0,1

(Source: Preliminary statistical data of the General Customs Office )

Figure 1: The Viet Nam’s export turnover of electronic products to CPTPP members during 2018-2020 (Unit: Million USD )

(Source: Preliminary statistical data of the General Customs Office)

1.2. Export to CPTPP members

1.2.1. Export of computers and electronic components to Japan:                    

Over the past years, Japan has always been Vietnam’s leading economic and trade partner, especially the trade and cooperation relationship between the two countries with outstanding and comprehensive development in many fields. Japan is currently the third largest export market (after the US and China) and the third largest import market (after China and South Korea) of Vietnam.

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is opening up huge opportunities for businesses in export activities, particularly to the Japanese market, one of Vietnam’s leading trading partners.

In order to boost exports to Japan, businesses and industries need to research, conduct surveys on specific needs of the market, and build appropriate marketing strategy. Products with designs, colors and product packaging must be suit consumers’’  tastes. At the same time, enterprises must actively participate in seminars, trade promotion programs to introduce products as well as the strengths of businesses, finding new customers, expanding business markets …

In March 2020, Vietnam’s exports of computers and electronic components to Japan reached $US 117.1 million, accounting for only 3.2% of the whole country and accounting for 34.9% of the CPTPP group, an increase of 28.3% and of 38.0%, when compared with the previous month and the same period in 2019, respectively. Exports of these products to Japan in the first 3 months of this year reached US $ 288.2 million, a rise of 25.4% over the same period in 2019.

Figure 2: Viet Nam’s export turnover of computers and electronic components to Japan (Unit: Million $US)

 (Source: Preliminary statistical data of the General Customs Office )

1.2.2. Export of computers and electronic components to Mexico

Mexico is Vietnam’s second-largest export market in Latin America after Brazil. The main export products of Vietnam to Mexico are telephones, footwear, computers, textiles… Under the CPTPP, Mexico pledges to eliminate 77% of tariff lines as soon as the Agreement comes into effect, equivalent to 36,5% of import turnover from Vietnam and will eliminate 98% of tariff lines in the 10th year after the Agreement becomes effective.

According to the General Statistics Office, Vietnam’s exports of computers and electronic components to Mexico market reached 86.5 million $US, accounting for only 2.3% of the country’s share and 25.8% of the CPTPP group, a rise of 26.9% over the previous month and of 68.8% over the same period last year. For the first 3 months of this year, exports of this commodity to Mexico reached $US 220.1 million, an increase of 25.6% over the same period in 2019.

Figure 3: Viet Nam’s export turnover of computers and electronic components to Mexico during 2018-2020 (Unit: Million US $ )

 (Source: Preliminary statistical data of the General Customs Office )

1.2.3. Export of computers and electronic components to Malaysia

Electronic products made in Malaysia are mainly for exported (accounting for over 50% of the country’s export turnover), of which specialized electronic products account for nearly 50%, electronic components account for 40%, and consumer electronic products only account for 10%. The largest export markets of the Malaysian industry include the United States (27%), Singapore (19%), the EU (7%), the rest are Japan and other ASEAN countries.

The majority of electronic products and components manufacturers in Malaysia are Japanese. These manufacturers are connected to form interdependent clusters of electronic components or appliances manufacturing which has advantages in specialization. That is one of the main features of Malaysia’s electronics industry, which is different from independent Thailand’s firms. The electronics industry in Malaysia have developed strongly and gain success thanks to the connection and cooperation networks among Japanese components manufacturers and assembling companies. However, FDI companies hardly contact to cooperate with domestic companies, thus technology transfer between FDI enterprises and domestic enterprises are limited.

Vietnam’s export of computers and electronic components of to Malaysia in March 2020 reached 35.9 million US $ , accounting for 1.0% of the country’s share and accounting for 10.7% of the CPTPP sector, an increase of 1.0 % compared to the previous month but decreased by 4.1% compared to March 2019. Thus, in the first 3 months of this year, exports of these products to Malaysia reached US $ 109.5 million, a rise of  12.9% over the same period in 2019.

Figure 4: Vietnam’s export turnover of computers and electronic components to Mexico during 2018-2020 (Unit: Million US $ )

(Source: Preliminary statistical data of the General Customs Office )

2. Imports

2.1. Overview of imports to CPTPP

In March 2020, the sourcing of imported parts and components for the electronics industry was restored partly because suppliers in China and South Korea returned to operation after the epidemic reached is peak. However, the import is still facing many difficulties. Imports of components and spare parts from China transported by road take more time to clear customs than usual because the border gates are still applying quarantine measures.

Enterprises have sought to diversify methods of transporting imported components instead of going by roads, but this will lead to an increase of costs (air) and take longer time (by sea), and make it difficult to ensure the number of components as well as to meet deadline of production.

According to statistics of the General Department of Customs, in March 2020, imports of computers and electronic components of our country reached over 5.06 billion US $ , went up to 13.61% over the previous month and rose by 14.56% compared to March 2019. By the end of the first 3 months of 2020, total import turnover of this commodity reached US $ 13.75 billion, went up to 16.67% over the same period last year and accounted for 23.12% of the country’s total import turnover..

Market shares in the CPTPP group reached US $ 539.3 million, accounting for only 11.7% of the country’s imports of computers and electronic components, went down  to 13.3% compared to the previous month and went up 34.6%. % compared to the same period last year. In the first 3 months of this year, imports of these products in the CPTPP group reached US $ 1.7 billion, went up to 32.4% over the same period in 2019. The import turnover from the Japanese market accounted for 67.1% of the proportion; followed by Malaysia, Singapore, Mexico… Total imports from these markets reached over US $ 19 million.

 Table 5: The Viet Nam’s export turnover of electronic products to CPTPP members in March 2020 and in 3 months of 2020

Market	Mar 2020  (Million US $ ))	Compared to Feb 2020 (%)	Compared to Mar 2019 (%)	3 months in 2020 (Million US $ )	Compared to 3 months  in 2019 (%)	Proportion of Mar 2020 compared to CPTPP (%)	Proportion of Mar 2020 compared to Vietnam (%)
Total	5.062.156.681	13,6	14,6	13.753.575.176	16,7	*	100,0
Including CPTPP group	593.339.875	-13,3	34,6	1.792.919.749	32,4	100,0	11,7
Japan	398.372.328	-21,9	44,8	1.250.106.617	41,0	67,1	7,9
Malaysia	131.634.482	23,4	8,2	348.111.996	6,3	22,2	2,6
Singapore	42.337.367	-5,3	49,0	128.872.549	44,0	7,1	0,8
Mexico	19.762.531	-2,5	27,5	57.831.865	16,1	3,3	0,4
Canada	1.233.167	-53,2	520,1	7.996.722	544,4	0,2	0,0

(Source: Preliminary statistical data of the General Customs Office )

 Figure 5: The Viet Nam’s export turnover of electronic products to CPTPP members during 2018-2020 (Unit: Million US $ )

 (Source: Preliminary statistical data of the General Customs Office )

2.2 Imports from CPTPP members

2.2.1. Imports of computers and electronic components from Japan

In March 2020, imports of computers and electronic components from Japan reached US $ 398.3 million, accounting for 7.9% of the country’s total turnover and accounting for 67.1% of the CPTPP group, went down to 21.9 % compared to the previous month and went up to 44.8% over the same period in 2019. In the first 3 months of this year, imports of computers and electronic components from this market reached US $ 1.2 million, an increase of 41. 0% over the same period in 2019.

 Figure 6: Viet Nam’s import turnover of computers and electronic components from Japan during 2018 -2020 (Unit: Million US $ )

(Source: Preliminary statistical data of the General Customs Office )

2.2.2. Import of computers and electronic components from Malaysia

Malaysia’s electronics industry mainly focuses on the production of specialized electronic devices, high-tech components, and accessories such as semiconductor devices (ICs, transistors, sensors…), multi-layer printed circuits, mechatronics components, computer components… Currently, there are more than 900 enterprises operating in the field of electronics, concentrated in 200 industrial parks and 14 export processing zones and most of them are foreign-invested enterprises. Semiconductor devices play an important role in Malaysia’s electronics component manufacturing industry, accounting for about 35-40% of the total export turnover of electronic products.

In March 2020, imports of computers and electronic components from Malaysia reached US $ 131.6 million, accounting for 2.6% of the country’s total turnover and accounting for 12.2% of the CPTPP group, an increase of 23.4% compared to the previous month and 8.2% compared to March 2019. In the first 3 months of this year, imports of computers and electronic components from this market reached US $ 348.1 million, went up to 6.3% over the same period in 2019.

Figure 7: Viet Nam’s import turnover of computers and electronic components from Malaysia during 2018 – 2020 (Unit: Million US $

 

(Source: Preliminary statistical data of the General Customs Office )

 2.2.3.  Import of computers and electronic components from Singapore

According to the statistics of the General Department of Customs, imports of computers and electronic components from Singapore in March 2020 reached 42.3 million US $ , accounting for 0.8% of the country’s total import turnover and accounting for 7.1 % of CPTPP group, decreased by 5.3% over the previous month and increased sharply by 49.0% compared to March 2019. In the first 3 months of this year, accumulative value of imports of these products from Singapore reached US $ 128.8 million, went up to 44.0% over the same period in 2019.

Figure 8: The Viet Nam’s import turnover of computers and electronic components from Singapore during 2018 – 2020 (Unit: Million US $ )

(Source: Preliminary statistical data of the General Customs Office )

III. Policies related to cooperation in electronics industry production, investment, technology between Vietnam with CPTPP members

*New generation of Free Trade Agreement, the Government has issued 12 Decrees on preferential tariffs for partners

The Ministry of Finance has recently submitted to the Government for promulgation of 12 Decrees on preferential tariffs for partners in 12 agreements that Vietnam has signed for the period 2018-2022 / 2023 (CPTPP is in the period from 2019 to 2022 and Vietnam – Laos agreement was from September 1, 2016 to October 3, 2020  and Vietnam – Laos tax decree is under implementation according to AHTN 2012. Under the ASEAN Trade in the Goods Agreement, the tax reduction roadmap has been completed in 2018. The agreements are approaching to the completion of the tax elimination roadmap including ASEAN – China Agreement (2020), ASEAN – Korea (2021), ASEAN – Australia – New Zealand (2022) that can achieve a high rate of liberalization, about 90% by 2019.

CPTPP is currently the latest agreement implemented by Vietnam. On June 26, 2019, the Government issued Decree No. 57/2019 / ND-CP on the Preferential Export Tariff and Vietnam’s Special Preferential Import Tariff to implement CPTPP from the 14^th January 2019 until the end of the 31^st December 2022. According to that, Vietnam has committed to eliminating export duties on most of the goods that are currently subject to export duties, basically on a roadmap of 5-15 years after the Agreement comes into effect. A number of important commodity groups (such as coal, lignite, crude oil, gold …) continue to maintain export taxes.

Vietnam must comply with the CPTPP’s commitment on import duties to eliminate almost 100% of tariff lines, whereby: (i) 65.8% of tariff lines will have a tax rate of 0% right after the Agreement comes into effect; (ii) 86.5% of tariff lines have a tax rate of 0% in the 4th year after the Agreement comes into force; (iii) 97.8% of tariff lines have a tax rate of 0% in the 11^th year from the date that the Agreement is effective; (iv) Import duties for the remaining goods are committed to eliminate with a raodmap to eliminate tariffs at the maximum in the 16^th  year or under tariff quotas.

The commitment to eliminate import duties according to the roadmap, Vietnam and CPTPP member countries commit to exempt taxes for cases such as: re-imported goods after being repaired or replaced; goods temporarily imported for repair or replacement without changing the basic features of the product.

Based on the comparative degree of liberalization of the previous FTAs and the new generation FTAs such as the CPTPP, we can see that the CPTPP has the deepest level of commitments with most of the tariff lines equivalent to ATIGA. After 2029 (10 years from the date of entry into force of the Agreement), a few lines of goods will continuously subjected to the tax reduction in the roadmap for 15 to 20 years from the date when the Agreement comes into effect.

In 2019, the total number of FTAs signed by Vietnam (except CPTPP) is 04 agreements, including: Free Trade Agreement between Vietnam and EU (EVFTA), Goods Trade Agreement between ASEAN and Hong Kong (China) (AHKFTA), Vietnam – Cuba Trade Agreement, and Agreement to promote bilateral trade between the Government of Vietnam and the Government of Cambodia.

IV. Annex

Table 1: List of some companies importing computers and electronic components from CPTPP market in March 2020

STT	Company
1	Intel Products VietnamCo. Limited
2	Samsung Electronics VietnamThai Nguyen Co. Limited
3	Samsung Electronics Hcmc Ce Complex Co. Limited
4	Vina Solar Technology Co. Limited
5	Lg Display Vietnam Hai Phong Co. Limited
6	Samsung Display VietnamCo. Limited
7	Hanyang Digitech Vina Co. Limited
8	First Solar Manufacturing Vietnam Co. Limited
9	Brother Industrial Vietnam Co. Limited
10	New Wing Interconnect Technology (Bac Giang) Co. Limited
11	Canon Vietnam- Que Vo Branch Co. Limited
12	Lg Electronics Vietnam Hai Phong Co. Limited
13	Goertek Vina Co. Limited
14	Samsung Electronics Vietnam Co. Limited
15	Funing Precision Component Co. Limited
16	Mcnex Vina Co. Limited
17	Sei Electronic components(Vietnam) Co. Limited
18	Kyocera Vietnam Office Machine TechnologyCo. Limited
19	Jabil VietnamCo. Limited
20	Power Logics Vina Co. Limited
21	Fuhong Precision  Component (Bắc Giang) Co. Limited
22	Fuji Xerox Hải Phòng Co. Limited
23	Canon VietnamCo. Limited
24	Olympus VietnamCo. Limited
25	Mega Step Electronics (Vietnam) Co. Limited
26	Hai Boi Services Co. Limited
27	Aac Technologies Vietnam Co. Limited
28	Canon Vietnam- Chi Nhánh Tiên Sơn Co. Limited
29	Compal ( Vietnam) Co. Limited
30	Boviet Solar Technology Co. Limited
31	Green Wing Solar Technology Co. Limited
32	Meiko  Electronics Vietnam Co. Limited
33	Seoul Semiconductor Vina Co. Limited
34	Canadian Solar Manufacturing Vietnam Co. Limited
35	Young Poong Electronics Vina Co. Limited
36	Hnt Vina Co. Limited JSC
37	Datalogic VietnamCo. Limited
38	Anam Electronics VietnamCo. Limited
39	Ht Solar VietnamCo. Limited
40	Hữu Hạn On Semiconductor VietnamCo. Limited
41	Yokowo VietnamCo. Limited
42	Tohoku Pioneer VietnamCo. Limited
43	Inkel VietnamCo. Limited
44	Cammsys VietnamCo. Limited
45	Vietnam Sunergy JSC
46	Hanwha Techwin Security VietnamCo. Limited
47	Unigen Vietnam Hanoi Co. Limited
48	Cresyn Hanoi Co. Limited
49	Greystone Data Systems VietnamCo. Limited
50	Điện Tử Foster Electronics (Bac Ninh) Co. Limited

(Source: Preliminary statistical data of General Customs Office)