All development plans for the Vietnamese electronic industry could endup nowhere as imported products have flooded the local market, industryinsiders say.
According to the General StatisticsOffice, the import turnover for electronic products, computers and spareparts reached 1.76 billion USD in the first four months, an increase of29.7 percent over the same period last year.
China and Malaysia accounted for 567 million USD and 118 millionUSD of this figure, posting respective increases of 20.6 and 9.4percent. Imports of electronic products from the Republic of Korea ,meanwhile, tripled to 462 million USD.
For May alone, import turnover topped 500 million USD, an increase of over 20 percent over the previous month.
Many importers attributed the import surge of the last five months to the launch of many new products for this year.
Moreover, the US dollar exchange rate had "cooled down" recently,making it easier to buy the greenback from banks, with some selling itat lower than the listed price.
Enterprises havetaken full advantage of these factors to import products in largevolumes. They have also been motivated to do so by the assessment ofdistributors that this year's electronic market will experience highgrowth.
Bui Tan Cuong, director of ThienHoa Electronics and Interior Decoration Product Centre, said thatdomestically produced or assembled electronic products used to accountfor 70-80 percent of sales at trade centres.
However, it has now fallen by almost half, he said. Importedtelevisions, for instance, account for 60 percent of sales at tradecentres instead of the previous 30 percent.
Importedrefrigerators, air-conditioners and washing machines now have more than50 percent of the domestic market share. Especially, imported householdappliance products have occupied more than 80 percent and digital itemsare nearly imported 100 percent.
Electronicbusinesses say the import tax of electronic products are currently at 5percent under the Asian Free Trade Area (AFTA) framework, and willcontinue to decrease in the coming years. This is another factor in the"boom" of imported products, presenting a serious challenge for localbusinesses.
Many local electronic firms have moved out of manufacturing and assembling and shifted to import and distribution.
Sony closed its Vietnam assembly plants in 2008 and in thebeginning of this year, JVC Vietnam temporarily stopped its production.
Nguyen Quang Huy, business director of ToshibaVietnam , said the company stopped assembling LCD television sets inVietnam last year and has begun importing the item.
Vu Duong Ngoc Duy, deputy general director of JVC Vietnam, said thetax decrease, plus Chinese products at cheap prices would apply bigpressure on Vietnamese businesses and further weaken theircompetitiveness.
Most famous electronic firms haveproduction factories in other Southeast Asian countries and China ,and the current market situation makes it easier and more profitable toimport their products than make them here. /.
According to the General StatisticsOffice, the import turnover for electronic products, computers and spareparts reached 1.76 billion USD in the first four months, an increase of29.7 percent over the same period last year.
China and Malaysia accounted for 567 million USD and 118 millionUSD of this figure, posting respective increases of 20.6 and 9.4percent. Imports of electronic products from the Republic of Korea ,meanwhile, tripled to 462 million USD.
For May alone, import turnover topped 500 million USD, an increase of over 20 percent over the previous month.
Many importers attributed the import surge of the last five months to the launch of many new products for this year.
Moreover, the US dollar exchange rate had "cooled down" recently,making it easier to buy the greenback from banks, with some selling itat lower than the listed price.
Enterprises havetaken full advantage of these factors to import products in largevolumes. They have also been motivated to do so by the assessment ofdistributors that this year's electronic market will experience highgrowth.
Bui Tan Cuong, director of ThienHoa Electronics and Interior Decoration Product Centre, said thatdomestically produced or assembled electronic products used to accountfor 70-80 percent of sales at trade centres.
However, it has now fallen by almost half, he said. Importedtelevisions, for instance, account for 60 percent of sales at tradecentres instead of the previous 30 percent.
Importedrefrigerators, air-conditioners and washing machines now have more than50 percent of the domestic market share. Especially, imported householdappliance products have occupied more than 80 percent and digital itemsare nearly imported 100 percent.
Electronicbusinesses say the import tax of electronic products are currently at 5percent under the Asian Free Trade Area (AFTA) framework, and willcontinue to decrease in the coming years. This is another factor in the"boom" of imported products, presenting a serious challenge for localbusinesses.
Many local electronic firms have moved out of manufacturing and assembling and shifted to import and distribution.
Sony closed its Vietnam assembly plants in 2008 and in thebeginning of this year, JVC Vietnam temporarily stopped its production.
Nguyen Quang Huy, business director of ToshibaVietnam , said the company stopped assembling LCD television sets inVietnam last year and has begun importing the item.
Vu Duong Ngoc Duy, deputy general director of JVC Vietnam, said thetax decrease, plus Chinese products at cheap prices would apply bigpressure on Vietnamese businesses and further weaken theircompetitiveness.
Most famous electronic firms haveproduction factories in other Southeast Asian countries and China ,and the current market situation makes it easier and more profitable toimport their products than make them here. /.
