AFTA to shake-up local electronics sector: LG Electronics has invested $600,000 its first digital centre in Ho Chi Minh City. Bao Giang talks with the firm's vice-president Michael Ahn about the consequences of AFTA and how he sees the electronic industry developing further in Vietnam. (News)

Vietnam Investment Review, July, 2003 by Bao Giang

Is this a consequence of Vietnam's joining AFTA on July 1? Are electronic products under more intense competitive pressure because of this?

For the immediate future, when AFTA/CEPT is applied, products from either China or South Korea to Vietnam will be no longer be competitive.

So they must be imported from Asean countries.

Now, LG has three factories in Asean countries: Vietnam, Thailand and Indonesia.

Later, LG will make an assessment and will take goods from the country that has the capacity for supplying the most competitive products.

So, will the fact that Vietnam joined AFTA be an advantage or disadvantage to the sector's investment projects in Vietnam?

To the year 2005, from LG's point of view, the fact that...