Investment News

Vietnam - A promising destination for big companies


Vietnam is considered to be the destination of many large companies in the world. will be one of the countries benefiting from the supply chain transformation. (Illustration image - Photo: Investment Newspaper)

Consultant Henrik Bork at Asia Waypoint recently said that Chinese electronics groups such as Luxshare Precision Industry, Goertek and Taiwanese iPhone assembler Pegatron (China) are moving their facilities to Vietnam.

Japan's Nikkei Asia magazine in early June reported that Apple is also moving iPad production outside of China, towards Vietnam.

German radio station DW reports that companies, especially in the electronics industry, are investing heavily in Vietnam.

In February, South Korea's leading electronics group Samsung announced that it would invest an additional $920 million in Vietnam.

Many assessments say that global companies like Apple are moving production to Vietnam mainly due to high wages in China and intense US-China trade competition.

Vietnam is considered to have many advantages: such as a young labor force per capita that is much larger than other countries in the world, a highly competitive manufacturing industry, an easy sea route system for travel. export. These are also factors contributing to the promotion of free trade agreements with many regions around the world in recent years.

Raphael Mok, an expert at consulting firm Fitch Solutions, said that Vietnam will be one of the main beneficiaries of supply chain transformation.

Meanwhile, in an article published at the end of May, German radio station DW commented that there is a trend of shifting high-tech production from China to Vietnam.

According to DW, Mr. Daniel Muller, Director of Germany's Asia-Pacific Business Association, said that Vietnam has always been a promising destination for German companies.