Vietnam’s Potential as an Electronics Component Supplier for Francophone Markets

Professor Pierre Fenies from Paris Panthéon Assas University has recognized Vietnam’s key role in electronics manufacturing, stating that the country could become a crucial supplier for Francophone nations.

This insight was shared at the One Global Vietnam 2024 Forum held in Paris, France, organized by the Association of Vietnamese Scientists and Experts Global (AVSE Global) on the occasion of the 19th Francophonie Summit.

Vietnam’s Growing Role in Global Supply Chains

Professor Fenies analyzed the evolution of logistics supply chains over time and Vietnam’s potential role within these systems. He noted that:

• Historically, supply chains were localized, but during the 1980s and 1990s, they became globalized.
• However, modern supply chains include both global and local components, raising the question:
  Can a localized supply chain be established within the Francophone community?

Vietnam’s Position in Electronics Manufacturing

According to Prof. Fenies, Vietnam has made significant advancements in electronics production, positioning itself as a key supplier within the Francophone economy.

Highlighting Vietnam’s potential as an innovation hub in supply chains, he suggested that the country should focus on recycling and reusing electronic components to manufacture new mobile devices.

“Vietnam can play a crucial role in facilitating the transition to sustainable logistics models, exporting not only to Africa but also to Europe,” he emphasized.

“Vietnam’s agility and adaptability allow it to develop localized supply chain models—something that developed nations, with their rigid systems, find more difficult to achieve.”

Collaboration in Renewable Energy

Mr. Matteo Dominici, President of the NGO Merja Zarka, emphasized the importance of cooperation among Francophone nations, particularly in renewable energy such as wind and solar power.

He proposed that Vietnam, an expert in these fields, should share its expertise with African nations like Morocco and Senegal, where similar energy demands exist.

From an economic perspective, he noted that economic zones have successfully attracted foreign direct investment (FDI) to Vietnam, generating approximately $15 billion. This model could be applied to African nations to stimulate economic growth and attract investment.

“Sustainable finance and emerging technologies will significantly contribute to economic development across Francophone countries, particularly in developing nations and Africa,” Mr. Dominici added.

Tax Incentives for Startups

Regarding finance, Professor Emmanuelle Dubocage from Paris Est Créteil University highlighted the importance of microfinance as a tool for economic inclusion, enabling individuals to access financial services.

With mobile technology, access to financial services is no longer limited by the need for traditional bank accounts. Today, many people use mobile phones for microfinance transactions.

For the Francophone community, microfinance institutions are essential in providing affordable loans and supporting entrepreneurs and small businesses, especially in Africa.

Taxation Challenges for Technology Companies

Discussing taxation policies for tech companies, Ms. Trang Fernandez-Leenknechk, founder of Holistak and an international tax lawyer based in Switzerland, pointed out a key challenge:

“Technology companies can have developers in one country, customers in another, and decision-making centers in yet another location.”

This raises complex issues in determining where companies should be taxed, particularly in cases where a company lacks physical presence but has significant economic activities in multiple jurisdictions.

Need for Tax Incentives for Startups

Ms. Fernandez-Leenknechk argued that startups and small businesses need tailored tax support to navigate the complexities of international taxation.

“Startups often face unintended tax risks due to their limited scale and resources, as they receive little to no tax guidance. There should be appropriate tax incentives to help them establish their operations,” she suggested.

Conclusion

Vietnam’s growing expertise in electronics manufacturing and renewable energy positions it as a valuable partner for Francophone nations.

By focusing on sustainable supply chains, technology recycling, and expanding its role in renewable energy collaboration, Vietnam can further integrate into the global Francophone economy, boost trade opportunities, and strengthen its role in international markets.