Vietnam phone exports to China surge eight-fold
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Customs data shows China became the second largest importer of phones and phone parts from Vietnam last year, just behind the European Union with US$11.96 billion, a year-on-year increase of 6.4%.
Exports of the products to South Korea also rose by a staggering 45.4% year-on-year to US$3.97 billion and shipments to the United Arab Emirates edged up a slight 1.6% to US$3.89 billion.
The report indicates Vietnam spent US$8.75 billion importing phones and phone parts from China and US$6.18 billion from South Korea last year, up 42.4% and 72.6% from a year earlier.
Therefore, for these products alone, Vietnam ran respective trade deficits of around US$600 million and US$2.21 billion with China and South Korea.
Notably, according to the report, China has accounted for around half of phone and phone part exports to Vietnam in recent years.
Apart from hi-end gadgets of tech giants like Samsung, Apple and HTC, industry watchers said Chinese brands such as Oppo, Huawei, Xiaomi and Vivo have dominated the mid-end and feature-phone market segments.
Although some major Korean phone producers like Samsung and LG have set up shop in Vietnam, many parts suppliers of these tech firms have yet to come to the country. Therefore, analysts forecast Vietnam will have to continue importing phone parts from the Northeast Asian nation this year.
Customs data shows Vietnam exported phones and phone parts worth US$45.27 billion last year, a year-on-year increase of 31.9%, while the country saw a 54.8% rise in imports of these products at US$16.34 billion. The products made up over 21% of the country’s export revenue last year.
Questions & Answers
Q.Which country is the largest importer of phones and phone parts from Vietnam?
Which country is the largest importer of phones and phone parts from Vietnam?
The European Union was the largest importer of phones and phone parts from Vietnam last year, with imports valued at US$11.96 billion. China followed as the second largest importer.
Q.Which countries did Vietnam run a trade deficit with for phones and phone parts last year?
Which countries did Vietnam run a trade deficit with for phones and phone parts last year?
Vietnam ran a trade deficit of around US$600 million with China and US$2.21 billion with South Korea for these products last year. This is due to significant imports from both nations.
Q.Why are analysts predicting Vietnam will continue importing phone parts from Northeast Asian nations?
Why are analysts predicting Vietnam will continue importing phone parts from Northeast Asian nations?
Analysts predict continued imports because many parts suppliers for major tech firms like Samsung and LG, which have factories in Vietnam, have not yet established operations within the country.
Q.What proportion of Vietnam's total export revenue did phones and phone parts account for last year?
What proportion of Vietnam's total export revenue did phones and phone parts account for last year?
Phones and phone parts made up over 21% of Vietnam's total export revenue last year. The country's exports of these products reached US$45.27 billion.
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