Vietnam - attractive destination in wave of shifting industrial production
Vietnam is viewed as an attractive destination amid the wave of shifting industrial production to ASEAN member states, heard a seminar held on October 5 as part of the international exhibition for machine tools and metalworking solutions (METALEX Vietnam 2023) in Ho Chi Minh City.
At the event, business representatives assessed that foreign partners in the global industrial manufacturing sector are keen on performing social and environmental responsibilities as a means of developing green supply chains in the market.
Most notably, ESG (environmental, social and governance) indicators are considered to be important factors for investors as they consider injecting money or conducting joint ventures with Vietnamese businesses, as well as expanding the domestic market, they added.
A series of multinational companies, namely Foxconn, Lego, Samsung, and LG, have poured added capital into the Vietnamese market, showing that the nation has been receiving a wave of shifting industrial production to ASEAN member states.
However, local businesses are facing a number of challenges, such as the development of green energy and a skilled workforce, along with the implementation of industrial production in line with global standards.
To take full advantage of international corporations' investment opportunities, Vu Trong Tai, general director of RX Tradex Vietnam Company, said that the Vietnamese business community is required to improve competitive advantages by upgrading new machinery and technology, increasing productivity, reducing energy consumption, and improving human resource qualifications.
Tai emphasized that several promising manufacturing industries in the country such as the supporting and electronics sectors have seen huge opportunities to develop sustainably and participate in the global supply chain.
For his part, Hirabayashi Tomoya, representative of the Sales and Marketing Department of YAMAHA Vietnam Company, revealed that many leading technology brands have been actively promoting themselves in the Vietnamese market.
This move indicates that global suppliers are seeking opportunities to gain entry to the Vietnamese market and view the country’s industrial production as an attractive destination in the ASEAN region.
Statistics indicated that the achievements of Vietnamese economic growth recovery since the beginning of the year can be attributed to a boost from industrial production sectors, especially from foreign direct investment (FDI) flows into the technological field.
The number of newly-registered FDI projects in Ho Chi Minh City increased significantly during the nine-month period with 860 projects, up 51.7% against the same period from last year. The total registered capital also reached US$406 million, up 16.7% on-year.
Source: VOV
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