The Ministry of Industry and Trade held a meeting with major electronics enterprises in Hanoi on October 30 to assess the sector's production and trade performance, examine the causes of its trade deficit and discuss development prospects.
Deputy Minister of Industry and Trade Luong Hoang Thai highlighted the electronics industry's contribution to national exports and called on businesses and experts to analyse its import-export structure, identify challenges and propose solutions for its development.
According to the ministry's Agency of Foreign Trade, total trade turnover reached an estimated 1.010 trillion USD in the first 10 months of 2026, up 32.3% year on year. October alone saw an estimated 122.2 billion USD in trade, up 47.6%.
Exports were estimated at 499 billion USD in January-October, rising 27.4%. The result is expected to help Vietnam meet or exceed its full-year export growth target of 15-16%.
Electronics remained one of Vietnam's key export sectors. Data from the Department of Customs under the Ministry of Finance showed that by October 15, exports of computers, electronic products and components, as well as telephones and components, had reached 189.65 billion USD, accounting for around 40% of the country's total exports.
Computers, electronic products and components generated 135.3 billion USD in exports, up 65% year on year. Rising global demand for artificial intelligence equipment and data centres was one factor behind the increase.
Imports of the two product groups totalled 209.7 billion USD, including approximately 201 billion USD worth of computers, electronic products and components.
Telephones and components posted a surplus of more than 45.67 billion USD, but the combined trade balance of the two groups remained in deficit by around 20 billion USD.
Vietnam's trade balance shifted to a deficit in 2026 after 10 consecutive years of surpluses. This increased the need to examine the country's import-export structure, particularly in the electronics sector.
At the meeting, Tran Thanh Hai, Deputy Director of the Agency of Foreign Trade, said Vietnam had become an important electronics manufacturing destination in global supply chains. Major corporations operating in the country include Samsung, LG, Intel, Foxconn and Canon.
The production structure remained uneven, with foreign-invested enterprises dominating manufacturing, assembly and exports. Domestic businesses were mainly involved in component production, supporting industries and technical services.
A major cause of the trade deficit was the sharp increase in imports of raw materials and components. Prices of certain types of chips rose by 300-500%, pushing up import values without a comparable increase in import volumes.
Businesses also increased stockpiling to meet production needs while expanding factories, production lines and export capacity. This drove up demand for imported machinery, equipment and inputs.
The industry's heavy reliance on imported components and materials, along with limited domestic content and locally generated added value, remained another challenge.
To address these shortcomings, the Agency of Foreign Trade proposed attracting investment in strategic electronics segments, developing the semiconductor industry, strengthening research and development, upgrading supporting industries and building closer links between foreign-invested and domestic enterprises.
Other priorities include diversifying export markets and supply sources, improving workforce quality and logistics capacity, and helping Vietnam move beyond manufacturing and assembly towards higher-value activities in global electronics supply chains.
Sources: VietnamPlus / Vietnam News Agency
