Aiding electronic export to EU market

The European Union (EU) is a vast and potential market for Vietnamese exports, particularly electronic items and computers. However, to set a foothold in the EU market Vietnamese producers and exporters of electronic items must strictly observe EU’s regulations on restricted use of hazardous substances (RoHS).

Shiny export prospect

Despite global economic recession, the export value of electronic items and computers kept growing and these items were listed among Vietnam’s top exporter earners in the next five years. Vietnam earned US$1.077 billion in the export value of electronic items and computers in 2004; the figure was more than doubled in 2009 to US$2.774 billion, 5.1 percent more than in 2008. This figure came to US$1.5 billion in the first half of 2010, 31.4 percent more year on year. Made-in-Vietnam electronic items are mainly exported to the Association of Southeast Asian Nations (ASEAN) countries, Japan, the Republic of Korea and the US.

Trade specialists assume that besides China and Hong Kong (China), the EU, particularly Germany and its new members such as Hungary, Poland, Czech and Slovakia, continues to be a promising export market for Vietnamese electrical and electronic items.

Complex barriers

In a workshop presenting the system for registration, evaluation and authorization of chemicals (REACH) and RoHS to businesses exporting products to EU market that was jointly held by the Chemical Department under the Ministry of Industry and Trade and relevant organizations Dr. Nguyen Xuan Sinh from the Chemical Department said “To gain a toehold and seize a stake in the EU market Vietnamese producers and exporters of electrical/electronic items must adhere to RoHS regulations. REACH and RoHS are complex technical barriers towards export commodities, particularly electronic items, to EU. The six hazardous chemicals under RoHS regulations are cadmium (Cd), mercury (Hg), lead (Pb), chromium compounds at the sixth valence, bromine compounds such as PBBs and PBDEs. The EU’s RoHS regulations aim to protect the environment and human health.”

Dr. Sinh said all electrical/electronic equipment such as laptops, information technology (IT) equipment, audio-visual equipment, house ware, office equipment, electrical/electronic instruments, toys, sports and entertainment equipment and lamps, etc. exported to EU are subject to adhering to RoHS regulations. RoHS regulations are also applicable in Norway, Switzerland and Listenstein. The RoHS regulations broadly affect producers of electrical/electronic items, EU importers and exporters. Besides EU, the US and Japan (two big export markets of Vietnamese electronic items and computers) also apply similar requirements like RoHS.

Establishing RoHS Center: A necessity

A problem to domestic producers and exporters of electrical/electronic items is how to obey RoHS regulations while the testing capacity of Vietnamese laboratories remains low. In addition, the use of alternatives to replace restricted toxic substances in producing electronic items will unavoidably lead to a high production cost. Big businesses with sound finance can satisfy RoHS requirements without difficulty, however for small and medium scale companies the problem is by no means simple.

To aid the producers and exporters of items subject to obeying RoHS requirements when penetrated EU market Dr. Sinh said the State must develop and enact a regulatory framework on restricted use of hazardous materials; formulate an ecological brand certification system; provide financial support to help businesses innovate technology, carry out studies to seek alternative materials; establish operational and management standards to control the use of toxic chemicals in production and invest in modern testing laboratories etc.

Especially, it is imperative to establish a REACH/RoHS Center at the Chemical Department with core functions of procuring information about RoHS, developing relevant legal documents on RoHS, providing training to help businesses know more and better meet RoHS requirements, receiving technical support to enhance RoHS obedience and propagate to enterprises. – VEN

Tags: Vietnam electronics exports