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In recent years, Vietnam has emerged as a preferred destination for global technology and electronics firms seeking to diversify their production bases. With a favorable business environment, skilled labor force, and strategic location in Southeast Asia, the country has attracted significant investments from industry giants such as Apple, Foxconn, Samsung, and LG. This article delves into the ongoing shift of production hubs to Vietnam and explores the implications for the global electronics and technology sector. Apple’s strategic move to Vietnam Apple Inc., one of the world’s leading technology companies, has made significant strides in expanding its production footprint in Vietnam. In 2023, Apple announced plans to move its MacBook production chain to Vietnam, a move that underscores the country’s growing importance in the global supply chain. The tech giant has tasked its largest supplier, Foxconn, with launching a MacBook production line in Vietnam as early as May this year. Moreover, Apple is also planning to produce its high-end Mac Pro in Vietnam, marking a significant shift from its traditional production bases in China. By 2025, Apple aims to produce approximately 20% of its total iPads and Apple Watches in Vietnam, alongside 5% of its MacBooks and a staggering 65% of its AirPods. These ambitious targets reflect Apple’s commitment to reducing its reliance on China and diversifying its manufacturing operations. Currently, 25 out of Apple’s 190 partners are already operating factories in Vietnam, further solidifying the country’s role in Apple’s global supply chain. Foxconn and Goertek lead the way Foxconn, Apple’s largest supplier, has been at the forefront of this shift. After investing a substantial $1.5 billion in Vietnam, Foxconn has announced plans to inject an additional $300 million into its Fukang factory located in the Quang Chau Industrial Park in Bac Giang province. This move is expected to enhance the company’s production capacity and further integrate Vietnam into Apple’s global supply chain. Similarly, Goertek, another key Apple supplier, has announced a $300 million investment in Bac Giang. This investment will bolster Goertek’s manufacturing capabilities and support Apple’s ambitious production targets in Vietnam. The decision by these major suppliers to expand their operations in Vietnam is a testament to the country’s growing appeal as a manufacturing hub. Vietnam’s rising electronics industry The shift of production hubs to Vietnam is not limited to Apple and its suppliers. Other global electronics firms are also making significant investments in the country. Lxshare, which is set to assemble the iPhone 15 Pro Max, currently operates six factories in Vietnam, employing a total of 40,000 laborers. This substantial workforce underscores the scale of Lxshare’s operations and its commitment to Vietnam as a key production base. Electronics firm Pegatron is another major player expanding its presence in Vietnam. The company is in the process of building a factory worth approximately $481 million in Hai Phong. Additionally, Pegatron has plans to relocate its research and development (R&D) center from China to Vietnam, further enhancing the country’s position as a hub for technological innovation. Other leading companies, including OPPO, HP, and Brose, are also considering relocating their production plants to Vietnam. These potential moves would further strengthen Vietnam’s electronics industry and position the country as a key player in the global market. Meanwhile, companies like Xiaomi, Bosch, Panasonic, Amkor, Sharp, and Compal are also planning to expand their business operations in Vietnam, highlighting the country’s growing attractiveness as an investment destination. Korean giants double down on Vietnam Korean electronics firms have also played a significant role in Vietnam’s rise as a manufacturing powerhouse. Samsung, one of the largest foreign investors in Vietnam, has already poured $18 billion into the country and recently launched Southeast Asia’s largest R&D center in Hanoi. Samsung’s commitment to Vietnam is set to continue, with plans to raise its total investment to $20 billion in the near future. This increased investment will likely lead to the expansion of Samsung’s production facilities and further integration of Vietnam into its global supply chain. LG, another major Korean electronics company, is also making significant investments in Vietnam. The company has announced plans to inject an additional $4 billion into its operations in the country. This investment will enhance LG’s manufacturing capabilities and support its goal of becoming a leading player in the global electronics market. Vietnam’s role in the global supply chain The ongoing shift of production hubs to Vietnam by global technology and electronics firms underscores the country’s growing importance in the global supply chain. With significant investments from industry giants such as Apple, Foxconn, Samsung, and LG, Vietnam is poised to become a major player in the global electronics industry. The country’s favorable business environment, skilled labor force, and strategic location make it an attractive destination for companies seeking to diversify their production bases and reduce their reliance on China. As more companies continue to invest in Vietnam, the country’s electronics industry is expected to grow rapidly, further solidifying its position as a key hub for global technology and electronics production. Business owners and investors should closely monitor these developments as Vietnam continues to rise as a strategic player in the global market. Read more: Vietnam Software OutsourcingSource: VietnamPlus

TMA achieved two consecutive awards of two categories at the Vietnam Smart City Award 2022 organized by VINASA.TMA was honored with 2 awardsOn the evening of December 1, in Hanoi, the Vietnam Smart City Award 2022, organized by the Vietnam Software and IT Services Association (VINASA), took place. Among 43 Vietnam Smart City 2022 awards for localities and businesses, 2 technology solutions from Tuong Minh Software Solutions Co., Ltd (TMA) were honored in 2 different categories.Security, safety, emergency, and rescue solutions.In particular, "Technology Solutions for Smart & Healthy Building/Township" of TMA Innovation proudly won a 5-star award in the category “Security, safety, emergency, and rescue solutions”. Representative of TMA received the award in the category “Security, safety, emergency and rescue solutions”TMA applies modern technologies such as AI, IoT, and Big Data to build safety and security solutions for buildings/residential areas. In particular, the solutions for access control, smart cameras, or guard control ensure the security and safety of residents and optimize operation for the management. At the same time, TMA's solution also includes healthy building solutions to control the quality of residents' living environment and a remote healthcare solution/medical suitcase to help ensure the safety of residents' health.Smart building/Apartment solutionsIn addition, with the solution ecosystem, TMA also received a 4-star award in the category "Solutions for smart buildings/apartments".TMA representative received the award in the category "Smart building/apartment solutions"The ecosystem helps to improve the physical and mental health of residents, optimize the operation for the management, improve the reputation of the investor, and increase the value of the real estate. TMA focuses on building a technology platform with the goal of supporting multi-industry, multi-service real estate. The solution ecosystem is managed by a centralized management system, which enables collecting and analyzing data. Meanwhile, an open platform is applied to facilitate existing and new solution integration.

In 2022, Vietnamese Information and Communications Technology (ICT) firms demonstrated significant growth, contributing 27 percent to the industry's earnings, marking a 2.35 percent increase from the previous year. According to a report by the Ministry of Information and Telecommunications (MIT), the ICT industry in Vietnam saw a substantial rise in overall earnings, reaching $148 billion. This represents an 8.7 percent growth from the previous year, with a notable contribution of $34 billion to the national GDP. Export and Trade Success Vietnam has solidified its position as a leading exporter of ICT products in Southeast Asia. The country exported $136 billion worth of ICT hardware in the past year, reflecting an 11.6 percent increase from the previous year. This impressive performance also resulted in a $26 billion trade surplus in the ICT sector. The continued growth in exports highlights the expanding global reach and competitiveness of Vietnamese IT firms. Shift from Outsourcing to Innovation A significant trend within the industry is the shift from traditional software outsourcing to the development of proprietary solutions. The report reveals that over 60 percent of firms have transitioned towards producing their own technologies, creating added value in the process. This strategic shift aims to enhance the industry’s capability to develop indigenous technologies and solutions that can compete on a global scale. Surge in New Entrants The ICT sector in Vietnam experienced a robust influx of new companies, with more than 70,000 new firms entering the market, marking a 9.6 percent increase from the previous year. This surge indicates a vibrant and expanding industry landscape, with growing opportunities for innovation and collaboration. Strategic Objectives and Technological Focus Looking ahead, a key objective for Vietnamese IT firms is to excel in developing and mastering indigenous technologies. The focus areas include artificial intelligence (AI), the Internet of Things (IoT), cloud computing, and 5G technologies. The aim is to proliferate domestically-made ICT products and services that achieve international recognition and success. TMA Solutions: Leading the Way Scale and Technical Capability TMA Solutions exemplifies the strength and capability of Vietnamese IT firms. With a team of over 4,000 software engineers, TMA is well-equipped to handle large and complex projects. The company's expertise spans a wide range of advanced technologies, including AI, IoT, Big Data, Cloud Computing, and Blockchain. This extensive technical capability positions TMA as a prominent player in the industry, capable of delivering high-quality solutions across various sectors. Global Client Network TMA Solutions has established a strong international presence, with significant operations in North America, Europe, and Asia. This global reach not only broadens their perspective on diverse client needs but also enables them to provide tailored software solutions that meet specific regional demands. TMA's international experience and client network are pivotal in driving their continued success and growth in the global market. Conclusion The Vietnamese ICT industry is on an upward trajectory, with impressive earnings, export success, and a growing number of innovative firms. The shift towards developing proprietary technologies and expanding into global markets underscores the sector's potential and ambition. Companies like TMA Solutions are leading the way, showcasing the technical prowess and global reach that define Vietnam’s burgeoning IT landscape. As the industry continues to evolve, the focus on mastering cutting-edge technologies and enhancing global competitiveness will be crucial in driving future success and achieving international recognition. Read more: Vietnam Software Outsourcing Source: Vietnam News

For Vietnam's government, digital transformation is a must for the country's continued economic success. According to projections, Vietnam's Gross Merchandise Volume (GMV) will increase by 28% in 2022, making it one of the most rapidly developing digital economies in Southeast Asia. It is projected that by 2030, the digital sector will account for 30% of Vietnam's GDP. Digital transformation: key to Vietnam's development The COVID-19 Impact Accelerating the country's digital push helped Vietnam handle COVID-19 rather well, making it one of the few nations to do so. It will take a lot of work, but Vietnam may provide the groundwork for its domestic institutions to embrace cutting-edge digital technologies and become a digital powerhouse in the future. The role of EVFTA in Vietnam's transition to digital By improving Vietnam's legal framework for digital transformation and fostering the growth of electronic commerce between the European Union and Vietnam, the EVFTA will contribute to the expansion of Vietnam's digital economy and progress. This will be achieved by regularly and fruitfully discussing the regulatory issues that digitization and e-commerce have raised. With the steady improvement of e-commerce rules, legislation, and frameworks, Vietnam will be able to go forward with its digital transformation. Digital Transformation: The Cornerstone of Vietnam's National Plan Vietnam hoped to complete two primary objectives by the century's midpoint. One goal, as stated by Prime Minister Pham Minh Chinh at COP26, is to reach net-zero carbon emissions by the year 2050. Another is to achieve high-income status by 2045, as stated in a resolution passed by the 13th National Party Congress. To achieve these objectives, digital transformation is essential. Many national programs emphasize it as a major priority for that reason. The primary areas that this digital revolution will impact Manufacturing The majority of industrial organizations currently have access to digital technology, making this industry ripe for digital transformation. Most companies are involved in processing and assembly, so manufacturing-related technologies are often well-received. Technologies such as robotics, automation, and monitoring and control fall under this category. Finance and Banking The financial technology industry in Vietnam is growing at a remarkable rate, considering its youth. In 2021, digital payments facilitated the majority of the venture capital invested in Vietnam (93%). The rapid growth of e-commerce, the massive number of smartphone users, and robust internet penetration in the country are all factors that have contributed to the rise of FinTech. E-commerce Online shopping is booming in Vietnam, making it one of the country's most dynamic digital economy sectors. The e-commerce market in Vietnam is growing at a rate of 35% annually, which is 2.5 times quicker than Japan, according to VECITA. Online shopping in Vietnam is expected to reach a new high of 16.4 billion USD in revenue, setting a new standard for this sector. Logistics The impact of digital transformation on logistics is a growing worry for both governments and corporations. The Vietnamese Minister of Industry and Trade, Nguyen Hong Dien, has stated that the country's logistics service sector will expand rapidly and ethically in response to international demand. The Ho Chi Minh City People's Committee has disseminated a plan for the digital transformation of the local logistics sector from 2022 to 2025, with an eye toward 2030. By 2025, the city will have completed developing digital platforms that connect multimodal transport services, a consolidated data repository, and a digital logistics map. There has been a lot of success, but far more work remains before Vietnam catches up in the development of its digital capabilities. This will ensure that the country's digital economy can benefit all citizens equally. To top it all off, Vietnam is ready to embrace digital change. Source: Source of Asia

South Korean electronics giant Samsung announced plans Tuesday to increase its investment in Vietnam from $18 billion to $20 billion. Samsung’s new Research and Development Center in Vietnam has been completed and will soon come into operation, focusing on research on phones, computers, and network systems, Vietnam News Agency quoted Han as saying.In upcoming big fairs, Samsung will exhibit leading hi-tech products and solutions, and if there are partners, the firm will manufacture them in Vietnam. Samsung Electronics Vietnam reported export turnovers of $65.5 billion in 2021, helping turn Vietnam into a global smartphone manufacturing hub. The Vietnamese president also met Tuesday with Hyosung chairman Cho Hyun Joon, who said the South Korean industrial group has invested $3.5 billion in Vietnam.Source: VnExpress

Vietnamese tech firms are expected to grow rapidly in both the mid and long-term thanks to rising IT demand around the world and rapid digital transformation at home. Statista, a German company specialising in market and consumer data, said IT services spending is expected to amount to 1.28 trillion USD and 1.39 trillion VND in 2022 and 2023, up 7.9% and 8.8%, respectively.The Vietnamese Ministry of Information and Communications targeted 100,000 digital firms in Vietnam by 2025, a rise of 56.25% from 2021. The telecom segment is expected to grow stably thanks to a rise in the number of broadband subscribers (8-10%), and a boom of 4G and 5G services. Notably, Vietnam has advantages in its IT workforce market.Read more: Vietnam Software Outsourcing in 2023According to HSBC, 51 percent of programmers in Vietnam are 29-30 years old. The hourly wage for. IT outsourcing software development in Vietnam is about 18 USD, equivalent to 64% in other Asian nations and 10% in the US. Therefore, clients from big markets like the US, Japan, the EU and Asia-Pacific have selected Vietnam as an ideal destination for cooperation in IT development.Source: vietnamplus