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Vietnam considered promising destination for world’s big names

by VNA26 June 2022 Last updated at 19:00 PM

Illustrative image (Photo: VNA)
Illustrative image (Photo: VNA)

Vietnam is said to be a destination for many major companies in the world, 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.

Consultant Henrik Bork of Asia Waypoint said that more and more Chinese consumer electronics manufacturers such as Luxshare Precision Industry, Goertek and Pegatron have recently set up new factories in Vietnam. In its 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, the Republic of Korea's leading electronics group Samsung announced that it would invest an additional 920 million USD in the Southeast Asian country.

According to assessments, 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.

DW quoted Daniel Müller, manager at the German Asia-Pacific Business Association, as saying: "It currently looks as if, in particular, medium-sized companies are increasingly striving to enter the Vietnam market.” Vietnam has become a more attractive destination for investors, Raphael Mok, head of Asia Country Risk at Fitch Solutions, told the news site./.

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