Vietnam considered promising destination for world’s big names

(VOVWORLD) - Vietnam has become a destination for many global companies, as the disruption of production activities due to the COVID-19 pandemic in China has forced them to find ways to move part of their production lines out of this country.
Vietnam considered promising destination for world’s big names - ảnh 1HCM city’s high-tech park. (Photo: VNA)

Consultant Henrik Bork of Asia Waypoint said that more and more Chinese consumer electronics manufacturers such as Luxshare Precision Industry, Goertek and Pegatron have set up new factories in Vietnam.

In an article in early June, Nikkei Asia wrote that for the first time ever Apple is moving some iPad production out of China and shifting it to Vietnam.

German English-language news site DW reported that companies, especially those operating in the electronics industry, are investing much in Vietnam. In February, South Korea’s giant Samsung announced that it would invest an additional 920 million USD in Vietnam.

According to analysts, global companies like Apple are moving production to Vietnam mainly due to high wages in China and intense US-China trade competition. The administration of US President Joe Biden is looking to diversify the global supply chain, and Vietnam is considered to have an important role in this policy. 

In addition, Vietnam currently has a young labour force and a competitive manufacturing industry, and also boasts a sea route easy for exports, which has made many European Union (EU) and Asian countries sign free trade agreements with it.

"It currently looks as if, in particular, medium-sized companies are increasingly striving to enter the Vietnam market,” DW quoted Daniel Müller, manager at the German Asia-Pacific Business Association.

Vietnam has become a more attractive destination for investors, Raphael Mok, head of Asia Country Risk at Fitch Solutions, told the news site.