The Situation of Vietnam's PCB Industry in 2024

The PCB (Printed Circuit Board) industry in Vietnam in 2024 is demonstrating a positive development trend. Below is a detailed analysis of the specific situation within this industry.

I. Market Size and Growth

According to a report released by the NSR (New Strategy Research) industry research center, the global printed circuit board market is continuously expanding, with an expected annual compound growth rate (CAGR) of approximately 3.7% from 2023 to 2028. Vietnam, as one of the fastest-growing economies in Southeast Asia, has seen its PCB industry rise rapidly. The market size of PCB in Vietnam is continuously expanding, benefiting from the sustained growth of downstream applications such as communications electronics, computers, consumer electronics, and automotive electronics. These sectors have significantly increased their application of PCB boards, providing ample development space for Vietnam's PCB industry.

II. Foreign Enterprises and Investments

Vietnam, with its stable social security, well-developed infrastructure, abundant, and inexpensive human resources, has attracted a large number of foreign enterprises to set up operations. These companies include renowned names like Shinto Electric Industries, Sumitomo Bakelite, Nokia, Intel, Foxconn, Minxing, Maruwa, and others. Foreign enterprises establishing PCB factories in Vietnam have not only driven the local PCB industry's growth but also enhanced the overall technological level and competitiveness of Vietnam's PCB industry. For example, Foxconn has established a precision circuit board limited company in the northern Vietnamese province of Ninh Binh, investing in the construction of a printed circuit board manufacturing factory.

III. Industry Chain and Completeness

Vietnam's PCB industry chain is gradually becoming more complete, covering upstream raw material production (such as copper clad laminate, copper foil, copper spheres, etc.), midstream manufacturing processes (such as PCB layout, core board production, etc.), and downstream applications (such as computers, mobile phones, etc.). However, upstream raw material production capabilities still need to be strengthened, as some raw materials still rely on imports. With the entry of foreign enterprises and the growth of local enterprises, the upstream and downstream synergies within Vietnam's PCB industry chain will be further strengthened.

IV. Technology and Development Trends

Vietnam's PCB industry is gradually moving towards production automation, product environmental friendliness, and application diversification. This is thanks to the advanced technologies and management experience brought by foreign enterprises, as well as the continuous learning and innovation of Vietnamese local enterprises. With the rapid development of emerging technologies such as 5G, IoT, and cloud computing, there are higher requirements for high-performance, high-density PCB products. Vietnamese PCB enterprises need to continuously improve their technological innovation capabilities to meet market demands.

V. Policies and Trade Agreements

The Vietnamese government strongly supports the development of the local PCB industry and has signed numerous friendly trade agreements with countries and regions such as South Korea and the European Union. These agreements have lowered trade barriers, providing Vietnam's PCB industry with broader market development opportunities. For example, the signing and implementation of agreements such as the Vietnam-Korea Free Trade Agreement (VKFTA) and the Vietnam-EU Free Trade Agreement (EVFTA) have helped Vietnam attract more international attention, further promoting the development of the PCB industry.

In summary, Vietnam's PCB industry in 2024 is demonstrating a positive trend with a continuously expanding market size, foreign enterprises entering the market, a gradually improving industry chain, continuous technological innovation, and an optimized policy environment. In the future, with the sustained growth of downstream applications and the rapid development of emerging technologies, Vietnam's PCB industry will face more development opportunities and challenges