Vietnam emerges as frontrunner in global nearshoring trend: Brazil media
(VOVWORLD) - Brazil’s riotimesonline.com on Sunday ran an article about the rapid changes in the global manufacturing landscape, citing the recent data from the S&P Global Market Intelligence (USA) saying that Vietnam has emerged as a leading destination for companies relocating their production facilities. This shift aims to protect supply chains from potential disruptions.
 An exhibition booth at the World Trade Center Binh Duong New City in May 2024 (Photo: VNA)
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According to S&P Global Market Intelligence, Vietnam has emerged as frontrunner in global nearshoring trend, outpacing Mexico. Nearshoring is a business strategy that involves relocating manufacturing and production operations to a nearby country.
Real-world examples underscore Vietnam’s attractiveness. Samsung has invested heavily in Vietnamese factories for electronics production. Nike and Adidas have shifted substantial production to Vietnam. Intel has also established a significant presence with a chip plant in Ho Chi Minh City.
More than 35% of Vietnamese firms reported increased demand from multinational manufacturers in the past year. This contrasts sharply with Mexico, where only 15% of companies experienced similar growth. The survey, conducted in May 2024, highlights Vietnam’s growing appeal to international businesses.
The article attributed several factors to Vietnam’s success in this arena including its geographical location, which provides easy access to major Asian markets; and competitive labor costs attracting companies looking to optimize their expenses. The Vietnamese government has also implemented policies that support foreign investment.
Vietnam’s workforce plays a crucial role in this success story, says riotimesonline.com. Vietnam ranks 9th among 60 nations in the ManpowerGroup’s Total Workforce Index (USA), indicating a reliable and skilled labor pool.