Vietnam Seeks Export Solutions as Electronics Trade Deficit Tops $60 Billion

During a high-level working session on September 8, Permanent Deputy Prime Minister Pham Gia Tuc directed the Ministry of Industry and Trade to work alongside relevant agencies and local authorities to examine firms with wide trade gaps, especially top net importers.

Tuc stated that regulators need a clear breakdown of import categories, procurement purposes, and their direct contribution to manufacturing and exports. This data will help design targeted measures to ramp up exports and production capacity. He made clear that authorities seek collaborative solutions with businesses, not administrative interference in everyday commercial operations.

The directive follows an aggressive surge in inbound technology shipments. Ministry of Industry and Trade data reveals that through August, exports of computers, electronics, and components hit $101 billion, up 51% year-on-year. However, imports across the same category jumped 68.3% to $161.6 billion, creating a net trade gap of roughly $60.5 billion.

The bulk of these imports consists of semiconductor chips, memory units, microprocessors, display panels, printed circuit boards, and other inputs for assembly, packaging, testing, and system integration. While essential for fulfilling export orders, the ministry noted that local factories remain heavily reliant on foreign chips, high-tech components, and raw materials, leaving domestic value capture relatively thin.

At the same time, booming global demand for artificial intelligence, enterprise data centers, and consumer electronics is opening a window of opportunity. This tech wave allows Vietnam to expand manufacturing capacity, attract high-caliber foreign direct investment, and cultivate a stronger domestic semiconductor ecosystem.

Tuc affirmed that industrial manufacturing and exports remain the economy’s primary growth engines. Still, he pointed out that component and equipment imports far outpace exports in several key portfolios, leaving sectors vulnerable to external supply disruptions while generating limited domestic value.

He urged government ministries, municipal leaders, and both domestic and foreign-invested enterprises to build internal resilience and take the initiative amid shifting global trade dynamics.

Representatives of major exporters speak during the session on September 8. (Photo: VGP)

To address these structural issues, the Ministry of Industry and Trade will review Vietnam’s catalog of supporting industries, prioritizing electronic components and materials that carry strong market demand and viable domestic production potential. The Ministry of Finance will evaluate tax incentives for makers of electronic parts, specialized materials, and supporting industrial goods.

Meanwhile, the State Bank of Vietnam will look into targeted credit policies to help local suppliers invest in factory automation, digital tools, and tech upgrades. The Ministry of Science and Technology will back enterprises in mastering semiconductor, integrated circuit, and materials technologies, while measuring Vietnam’s actual value-add in global tech supply chains.

For electronics and semiconductor manufacturers—especially top exporters—Tuc recommended clear roadmaps to localize components, materials, and production steps. He called on multinational corporations to widen their domestic vendor base and share technical standards so Vietnamese firms can plug directly into global production networks.

However, the Deputy Prime Minister stressed that localization targets must remain grounded in reality. “We cannot impose administrative mandates when domestic firms cannot yet meet technical specifications,” he noted, emphasizing instead that supporting industries must evolve to match the practical needs of foreign investors.

Tuc concluded by asking businesses to align their procurement strategies with downstream exports, utilizing imported inputs efficiently to expand high-value manufacturing at home. Major importers must coordinate with trade authorities and provincial governments to clarify their import profiles, value-addition plans, and domestic supplier programs.

(Source: VnExpress)