Vietnam’s electronics sector shattered export records in 2025, delivering $107.74 billion—up 48.4% YoY. This unprecedented growth propelled the country’s total export value to $475 billion, cementing electronics as the engine of trade expansion.

Record‑Breaking Export Performance

The National Statistics Office (NSO) reported that electronics, computers and components generated $107.74 billion in export turnover, a 48.4% increase over 2024 and more than $35 billion higher in absolute terms. Combined with phone‑related products, the two groups pushed total electronics‑related exports beyond $164.4 billion – the highest figure ever recorded for Vietnam.

Why the sector surged

• Foreign direct investment (FDI): Major players such as Samsung, LG, Intel, Foxconn, Canon and Goertek expanded production lines, turning Vietnam into a regional manufacturing hub.
• Global demand recovery: Post‑pandemic consumption spikes in the United States, China, the EU, Japan and South Korea lifted order books.
• Supply‑chain positioning: Vietnam now ranks among the world’s top‑10 electronics exporters, linking multinational corporations to Southeast Asian markets.

Impact on the trade balance

Electronics exports accounted for roughly 22.6% of Vietnam’s total $475 billion export basket in 2025. Meanwhile, imports rose to $150.7 billion—up 40.7% YoY—highlighting a widening but still manageable trade surplus driven by high‑value electronic goods.

Challenges Looming Ahead

Despite the boom, the sector faces structural issues:

• Heavy reliance on imported components and raw materials, which compresses margins.
• Domestic firms remain concentrated in low‑value‑added assembly stages, with localisation rates still modest.
• Information asymmetry between foreign‑invested enterprises and local suppliers hampers efficient partner matching.

Strategic Recommendations

To sustain momentum, Vietnam should:

1. Invest in R&D and higher‑value product design to move up the value chain.
2. Accelerate localisation of critical components through incentives for domestic manufacturers.
3. Build a robust data platform that maps supply‑chain gaps and connects local SMEs with multinational buyers.
4. Develop skilled labour pipelines in advanced electronics engineering and production management.

Broader Economic Context

The electronics boom mirrors growth in other export‑driven sectors. For instance, Vietnam’s seafood exports surpassed $11 billion in 2025, and the textile & apparel industry is on track to reach $46 billion in export earnings. Together, these sectors reinforce Vietnam’s shift from a low‑cost manufacturing base to a diversified, high‑growth economy.

As geopolitical tensions reshape global supply chains, Vietnam’s ability to attract high‑tech FDI and upgrade its domestic capabilities will determine whether it remains a mere assembly hub or graduates to a full‑stack electronics powerhouse.