Vietnam has increasingly become a fast-growing industrial center, especially for technology and clothing, wrote an article published Jan. 14 by India’s stattimes.com.
The article said that while parts of Asia are still recovering from the global pandemic, Vietnam’s economy has boomed, recording an impressive 8.02% increase in GDP in the last quarter of 2022 – that’s faster than others major regional economies in Asia. Export sales amounted to USD 372 billion, an increase of 10% year-on-year.
###: Registration of a foreign-invested company in Vietnam
Explaining the boom in Vietnam’s industry, it said part of the reason is supply chain disruption in mainland China, Asia’s largest manufacturing hub, as factories shut down during COVID-19. Companies turned to alternative locations to continue and diversify their production flows.
In addition, Vietnam has a competitive workforce and low production costs. It has a young and growing population of 97 million, 70% of whom are under the age of 35 – a significant manufacturing workforce.
The article also noted that Vietnam is strategically located along a 3,200 km stretch of coastline, making the country, particularly the north, an effective location for shipping cargo. The government has invested in development projects to improve the country’s infrastructure, particularly in the northeastern cities, to create a more attractive travel destination and ultimately a more connected port and industrial center, it said.
Another reason is that more companies are moving to Vietnam, the second largest manufacturer of technology and clothing in the world, with major brands such as Nike, Adidas and Samsung operating across the country. Google’s latest Pixel phone will also be made in Vietnam, while Microsoft started shipping Xbox game consoles from Ho Chi Minh City in 2022.
There are also reports that Apple supplier Foxconn is investing USD 300 million to expand their factories in the north of the country, and Dell, HP, Nintendo and Lenovo all plan to set up factories in the country as well.
In addition, the Vietnamese government has made a strong effort to facilitate trade between Vietnam and the rest of the world. The country has signed several free trade agreements with the EU, UK, and countries in Asia and the Pacific, giving the country more trade opportunities, especially to the west.
Another strong driver of trade is the Regional Comprehensive Economic Partnership agreement to which Vietnam is a member, the article said.
@ Vietnam Press Agency
