I. Overview

While main export commodities have recently decreased in terms of volume, “small-scaled” products have demonstrated promising signs and contributed to export achievement, especially in exports of electric wires and cables.

Together with the growth of electricity sector (on average 15-20% a year), Vietnam wire and cable production sector has grown rapidly over last years in order to meet the demand on transmission, telecommunication, and rural electrification and to serve other sectors in the process of construction and development period in the country.

Vietnam electric wire and cable production sector has developed sharply in 2003-2007 period. Electric wire and cable products are the two of the fifteen products with the highest export turnover. In 2007, export turnover of electric wire and cable sector was USD 800 million and it is expected to reach USD 2 billion by 2010. 

The sector has improved its standing in international market. This improvement has been more obvious since Vietnam’s accession to the World Trade Organization (WTO), as Vietnam’s electric wire and cable market was expanded and its export turnover rapidly increased. This is one of the sectors retaining stable growth rate of over 17% in the period of 2004-2007.

II. Production

1. Geographical areas of production

Vietnam electric wire and cable production enterprises are located in the North and the South of Vietnam.

The North: Production is located in large-scaled industrial parks in provinces/cities such as: Hanoi, Hung Yen, Bac Ninh, Hai Duong, Nam Dinh, etc.

·          Hanoi city involves industrial zones such as: Thang Long, Nam Thang Long, Noi Bai, Sai Dong, Hanoi - Dai Tu.

·          Hung Yen: Nhu Quynh Industrial Park A&B, Pho Noi Industrial Park A & B, Industrial Park of Hung Yen Town, and Minh Duc Industrial Park.

·          Hai Duong: Industrial Parks like Nam Sach, Dai An, Phuc Dien, Phu Thai, Tan Truong, Cong Hoa, and Industrial Park in the West of Hai Duong city.

·          Quang Ninh: Cai Lan, Viet Hung, Dong Mai, Ninh Duong Industrial Parks.

·          Vinh Phuc: Quang Minh, Kim Hoa and Tien Phong Industrial Parks.

·          There are also some industrial parks in Nam Dinh city, Bac Ninh

The South: Production is in Binh Duong, Dong Nai, Ho Chi Minh City

·          Ho Chi Minh City: industrial park of Ho Chi Minh City, Tan Binh Industrial Park.

·          Dong Nai: Bien Hoa I, Bien Hoa II, Thanh Long, An Phuoc, Tan Phu, Xuan Loc and Long Khanh Industrial Parks.

·          Binh Duong: Binh Duong, Song Than I & II Industrial Parks.

2. Characteristics, categories and composition of products

This report refers to electric wires and cables in Vietnam under HS 8544.

Electric wires: Used in civil and industrial fields. Wires with small cross section used for civil, industrial works are diverse satisfying various types of demand. Special wires such as: heatproof, anti-pollution, and heavy duty are also produced for electric transmission in the areas with special requirements on operation.

Electric cables: include bare cables for aerial lines, insulated solid dielectric cables, control cables, aerial bundled conductors, cross-linked polyethylene (ABC-XLPE) insulated twisted cables, optical ground wire (OPGW) cables serving the integration of optical cables in conductors to transmit power and signal, etc.

Fire and heatproof cables satisfy strict requirements of customers. Control and signal transmission cables and multi-conductor cables are used in control and signal transmission system.

Vietnam exported electric wires and cables are made of clean material: pure copper or aluminum contents in cable reach 99.99% and 99.7% respectively. As many electric wire and cable manufacturers apply advanced technology from Europe, Korea, Japan and Taiwan, their products are qualified with high quality, variety of types, and distinctive designs, accepted by domestic market and expected to be launched on the foreign markets.

3. Scale and production capacity

In 2004, there were 60 enterprises specializing in electric wires and cables, and the number was over 200 in 2007.

Total national output of electric wires and cables in 2006 was 1 million km, of which 36% with 0.369 million km was produced by enterprises with foreign investment. State-owned enterprises rank the second with 0.342 km, accounting for 34%. At the bottom are private enterprises with 0.307 million km, accounting for 30%?

(Source: Ministry of Industry and Trade)

Advanced technologies adopted from Europe, Korea, Japan, Taiwan are applied in many enterprises; therefore, the electric wire and cable products have good quality, meet International Electricity Committee (IEC) standard with attractive designs, accepted by domestic market and expected to be launched on the foreign markets, especially the regional market. Vietnam electric wire and cable enterprises, i.e. private ones, are flexible and active in meeting market demand.

4. Sources of production materials

Materials for wire and cable production are copper, aluminum, and plastic powder exploited in the country or imported.

4.1 Domestic materials

+ Copper: is the main material for wire and cable production (accounting for 80% price structure of products). At present, copper is used as core of wires such as electric wires and cables, magnetic cables, etc. supplied by domestic copper companies, but only accounting for 5-10% of the demand.

+ Aluminum: is the main material for aluminum cable production (accounting for 80% price structure of products). Domestic material sources are not adequate for demand.

+ Plastic: Plastics supplied for electric wire and cable production is in the form of powder, which is made from polyethylene (PE), polyvinyl chloride (PVC) plastics. Plastic is used for producing cover of electric wires and cables.

+ Rubber: Besides plastics, rubber is also used for producing covers of electric wires and cables and supplied by local synthetic rubber companies.

4.2 Imported materials

Copper: Vietnam has to import a large amount of copper for electric wire and cable production annually. In 2005, copper import turnover was USD 340.2446 million, some part of which is used for electric wire and cable production. Copper is mainly imported from Asian countries.

Copper import turnover of Vietnam

(Unit: million USD)

(Source: General Statistics Office)

Aluminum: in 2005, aluminum import turnover was USD 357.407 million, some part of which is used for electric wire and cable production. Aluminum is mainly imported from Asian countries

Aluminum import turnover of Vietnam

(Unit: million USD)

(Source: General Statistics Office)

+ Plastic: In 2005, Vietnam imported 560,000 tons of plastic, PCV, Polypropylene (PP) accounting for 450,000 tons, of which part was used for producing covers of electric wires and cables.

5. Production trends

Vietnam electric wire and cable sector will focus on producing products highly consumed in domestic market and products for export, including:

+ Copper cables

+ Aluminum cables

+ Electric wires and cables used in low voltage network

+ Aluminum cable steel-cored, PVC-insulated- 1.8 KV; 3.6KV

+ 12/20/24 KV water-proof trunk cables

+ XLPE insulated cables - PVC cover

+ PVC single cover electric wire

+ Bare twisted copper wires

+ Bare twisted aluminum wires

+ Steel-cored aluminum wires (Aluminum Conductor Steel Reinforced – ACSR)

+ Bare copper cables

+ Single copper cables

+ Magnetic enamel wires

+ Control cables

+ Underground double-core cables

+ Flexible single wires

6. Major producers 

Among the major wire and electric cable manufacturers of Vietnam, there are many companies with 100 percent foreign investment or joint ventures with foreign companies producing and exporting these goods at a large scale and utilizing modern technology. They are: Vietnam Wire and Electricity Manufacturing Joint–Stock Company, Vietnam Furukawa Automotive Parts Company, Vietnam Yazaki Edss Company, Sumi-Hanel Company, Vietnam Electric Nissei Company, Hai Phong Yazaki Company, Vietnam Fujikura Fiber Optic Company, LG-Vina Electric Joint Venture Company, Asti Electronic Company. In the domestic enterprise Association, there have been a lot of large scale manufacturing and export Companies especially Vietnam wire and electric cable Company (Cadivi), Tran Phu Wire and Electric Cable Company, Thuong Dinh Electric Wires and Cables Co., Ltd (CADI-SUN).

7. Well-known product brands

There are several famous Vietnam wire and electric cable brands in the domestic market listed below:

S.H. HWASUNG trademark with many manufacturing companies such as Kien Nang Wire and Electric Cable Company,        Vietnam TAYA Wire and Electric Cable Joint-Stock Company

 This trademark has been advertised and consumers in Vietnam and abroad are familiar with it.

CADI-SUN is the famous brand of the products manufactured by Thuong Dinh Electric Wires and Cables Co., Ltd. CADI-SUN brand has been developing rapidly and has affirmed its position in the international market and is voted as “Vietnam high quality product” by consumers.

CADIVI is the renowned trademark of Vietnam Wire and Electric Cable Joint-Stock Company voted by Vietnam consumers. All the products of the company such as single electric wires, various copper cables, aluminum cables are under CADIVI brand name and have been advertised internationally. CADIVI also becomes the main trademark in modernization and industrialization process of the country.

The investors usually prefer Tran Phu wires and electric cables for the following outstanding features:

·          Wire core of the international electric specification ensure “good conduction”, no oxidation, lesser power loss, easy use, no fault in the ground when constructing.

·          Insulator of international standard to ensure secure electric insulation, explosion prevention and long service life.

III. Domestic market

1. Market information

According to insufficient statistical data, domestic wire and electric cable manufacturing enterprises can now meet about 70 percent of the domestic market demand; the rest is imported from abroad.

There are many kinds of wires and electric cables in the domestic market, ranging from high-class to low–class products. Low-class products are mainly transported to various provinces for consumption. With respect to this kind of products, the label is written insufficiently and lacks the fiber diameter standard or the number of fibers.

2. Domestic consumption

In 2005, the value of wire and electric consumption in Vietnam was about USD 224.14 million; in 2006 it reached USD 301.7 million with an increase of USD 77.574 million in comparison with 2005. By 2007, the consumption level increased rapidly and attained approximately USD 378.437 million with an increase of USD 76.737 million compared with 2006 and USD 154.297 million; the average growth reached 29.5 percent from 2005 to 2007.

Vietnam’s accession to the World Trade Organization (WTO) was signified by the growth of the number of foreign companies operating in Vietnam as well as the growth of the numbers of local enterprises. These developments allow Vietnam to satisfy the increasing domestic demand on wires, electric cables, electric equipment and various cables.

With fast economic growth at present, the demand for wires and electric cables of Vietnam is increasing and it is estimated that the consumption will treble by 2010.

3. Consumption trends

Electric wires and cables produced by Vietnam are not only consumed domestically but are also exported. Consumption trend is growing for those products.

Currently, aluminum, copper cables such as electric wires and cables for low voltages, aluminum cables with insulation steel core PVC – 1.8 KV, 3.6 KV, anti-leaking medium voltage cables 12/20/24 KV, insulating armored cables XLPE – protection cases PVC, single wires with shield PVC, twist bare copper wires, twist bare aluminum wires, steel core aluminum wires (ACSR) are largely consumed in Vietnam and they have been supplied to the international markets as well. Electric wires and cables are not only used for consumption but also for production and assembly of electronic equipment.

4. Price

In 2007, price of electric wires and cables continued to change. Specifically, price of civil electricity and electric cables at the end of 2005 to the middle of 2006 increased by 41%. In 2007, price of civil wire and electric cables increased by about 20% in comparison with 2006.

Price list of electric cables and wires of Vietnam from 2005 to 2007