Vietnam Semiconductor & Electronic Manufacturing Market to Surge at a CAGR of Around 9.45%

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The Vietnam Semiconductor & Electronic Manufacturing market is estimated to grow at a CAGR of around 9.45% during the forecast period, i.e., 2025-30, cites MarkNtel Advisors in the recent research report. The rise in the market is due to an increase in the demand for electronic devices & 5G internet services, government support, growing investments in technology cloud, AI, ML, etc., enlarging manufacturing, automotive, and telecommunication sectors, the growing need for hybrid and electric vehicles, and others.

The inclination of consumers towards sustainable products like EVs has increased recently, due to the regular awareness campaigns for the encouragement of the use of renewable sources and energy. The tax relaxation on the ownership and registration of electric vehicles has made the automobiles affordable to the middle-income population, thus increasing the demand. To provide AC power to the battery of EVs, semiconductors are used. Thus, the increasing sales of EVs positively influence the market growth.   

Moreover, the government is making investments, running training programs, and making strategies, etc., to boost the FDI inflow in the semiconductor & electronic manufacturing sector in high-tech parks such as Hoa Lac Hi-Tech. The government is training the engineers to overcome the unskilled workforce hindrance, and investing under the C = SET + 1 plan, to boost the economy of the country, consequently generating a potential for market growth, further states the research report, “Vietnam Semiconductor & Electronic Manufacturing Market Analysis, 2025.”

Vietnam Semiconductor & Electronic Manufacturing Market Segmentation Analysis

Direct Sales (OEMs) is the Most Preferred Channel of Distribution

Based on the distribution channel, the market is further bifurcated into direct sales (OEMs), distributors/wholesalers, online sales platforms, and retail. The direct sales (OEMs) hold the majority of the market share, around 61%. This is due to the strong presence of leading OEM manufacturers, a shift in the supply chains, technological advancements, increasing penetration of smartphones, reduced taxation, etc.

The trade activities in Vietnam have surged due to its connectivity with the end-user geography, autonomous manufacturing process, the US-China trade war, increasing FDI, etc. Vietnam has strong connectivity to the end-user countries such as China, Japan, the US, South Korea, India, etc., which demand high-quality and advanced semiconductor and electronic components. The increasing tariffs of the US and China have led the importers to import from other countries, including Vietnam, thus building direct sales connections.

The strengthening of the cross-border connections has encouraged global manufacturers such as Samsung, Amkor Technology, and others to expand and invest in their supply chain and manufacturing units in the country, thus bridging the gaps in the sales channels. Hence, facilitating the large market share of the direct sales (OEMs) in the Vietnamese market.

Consumer Electronics (Smartphones, TVs, Wearables) Generating High Market Demand

Consumer electronics (smartphones, TVs, wearables) dominate the Vietnam Semiconductor & Electronic Manufacturing Market with a market share of around 56%. This is due to the adoption of 5G internet services, growing and well-established digital infrastructure, rising penetration of smartphones & telehealth wearables, integration of advancements such as AI, ML, Cloud, etc., the growing government investments, etc.

The demand for smartphones has increased lately, due to the increasing white collar population, the growing gaming & entertainment industry, the rise in e-commerce, the increase in disposable income, and others. The high-speed internet connectivity has enabled global connectivity, with around 78 million Vietnamese using the internet services. To support the wireless connectivity in smartphones, various semiconductor chips and electronic circuits are integrated into the devices. Thus, the increasing adoption of smartphones and the penetration of 5G services boost the market growth among consumers. 

Competitive Landscape

With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market companies, including Samsung Electronics Vietnam Co., Ltd., Intel Products Vietnam Co., Ltd., LG Electronics Vietnam, Foxconn Technology Group (Hon Hai Precision Industry Co., Ltd.), Panasonic Vietnam Co., Ltd., Hana Micron Vina Co., Ltd., Amkor Technology Vietnam, Unigen Vietnam, Jabil Vietnam, and others are looking forward to strengthening their market positions.

Key Questions Answered in the Research Report

1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
2. What are the trends influencing the current scenario of the market?
3. What key factors would propel and impede the industry across the country?
4. How has the industry been evolving in terms of geography & product adoption?
5. How has the competition been shaping up across the country?
6. How has the buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2020-30?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?