According to Sputnik News, Vietnam is drawing increasing attention amid expectations that it will become the world\u2019s next manufacturing hub.<\/p>\n
Shifting from the \u201cZero COVID-19\u201d approach to \u201csafely living with the pandemic,\u201d Vietnam has demonstrated a suitable direction as its economy continues to recover. This not only helps the economy quickly regain growth momentum, but also strengthens the confidence of foreign investors operating in Vietnam.<\/p>\n
In the spirit of \u201charmonized benefits and shared risks,\u201d many foreign investors still consider Vietnam a promising market for development. Despite the negative impacts of the pandemic, Vietnam has maintained its position in the global supply chain. In the first month of the new year, realized FDI reached more than USD 1.6 billion, up 6.8% year-on-year.<\/p>\n
\u201cVietnam is the world\u2019s new manufacturing base\u201d is the headline of a recent article published by Russia’s Sputnik News. The article noted that Vietnam is gaining more attention with expectations of becoming a new global production center. Vietnam\u2019s exports have reached record levels, with many \u201cMade in Vietnam\u201d products appearing in increasing volume and market share on the international stage.<\/p>\n
The article cited Samsung Vietnam\u2019s 2021 business report, affirming that \u201cVietnam has become a global manufacturing hub with a long-term investment strategy, and Hanoi has become Samsung\u2019s largest R&D center in Southeast Asia.\u201d<\/p>\n
A recent analysis by the Korean news platform Koreaherald reaffirmed that Vietnam is Samsung Electronics\u2019 largest smartphone manufacturing base. In 2021, 50% of Samsung\u2019s global smartphones were produced in Vietnam. Despite the difficulties caused by the pandemic, Samsung Vietnam still achieved 14% growth in 2021, reaching over USD 74 billion in revenue, with export turnover increasing by 16%.<\/p>\n
\u201cOne of the factors that enabled us to achieve such encouraging business results is the comprehensive support from the Vietnamese Government and local authorities. As a result, our production process was not disrupted even during the most challenging period of the pandemic. Samsung always trusts Vietnam\u2019s superior investment environment and will not change our business strategy here. By the end of 2021, Samsung Vietnam\u2019s accumulated investment capital reached USD 18 billion. While Samsung previously invested mainly in production lines, in the coming period we will elevate Vietnam to a new level\u2014becoming a strategic research and development hub,\u201d said Choi Joo Ho, General Director of Samsung Vietnam Complex.<\/p>\n
Recently, CNBC and Bloomberg cited the financial report of Nike, the world\u2019s leading sportswear brand, noting that in 2021, Vietnam accounted for 51% of Nike\u2019s global production volume.<\/p>\n
\u201cWe can clearly see Vietnam\u2019s strong appeal to FDI investors. The COVID-19 pandemic shows that we need to diversify supply chains, and Vietnam is one of the most promising candidates. Many major corporations have moved to Vietnam. I believe Vietnam will continue to capitalize on its competitive advantages,\u201d assessed Jacques Morisset, Lead Economist of the World Bank in Vietnam.<\/p>\n
Not only Samsung, Nike, and Intel, but many major manufacturing projects from multinational corporations such as Foxconn, Pegatron, and Lego are increasingly appearing in Vietnam. Panasonic recently relocated its refrigerator and washing machine production plant from Thailand to Vietnam. Meanwhile, long-established manufacturers have also planned to expand production.<\/p>\n
\u201cVietnam occupies an important position in the global supply chain. We highly appreciate the Vietnamese Government\u2019s strategic shift from \u2018Zero COVID-19\u2019 to flexible and effective adaptation. In the long term, Vietnam remains an attractive investment destination for Japanese businesses\u2014not only due to its stable political and economic environment and competitive costs, but also thanks to the quality of its workforce and opportunities brought by the free trade agreements Vietnam has signed,\u201d said Takeo Nakajima, Chief Representative of JETRO Hanoi.<\/p>\n
Emerging markets like Vietnam can present strong growth potential for investors. This assessment was highlighted in an article published on the U.S.-based ETF Trends on February 8. According to the article, although COVID-19 has deeply affected emerging markets, some countries that responded quickly were able to minimize economic losses. The article emphasized that Vietnam is a notable example thanks to its swift and decisive government action.<\/p>\n
\u201cThe pre-pandemic trend of shifting business operations and supply chains to Vietnam is being restarted. The U.S.\u2013ASEAN Business Council has decided to send a delegation of companies to visit Vietnam, meet with Government leaders and ministries to discuss investment plans and opportunities, instead of having to hold virtual meetings like last year,\u201d said Vu Tu Thanh, Deputy Regional Managing Director of the U.S.\u2013ASEAN Business Council.<\/p>\n
\u201cIn 2022, investment from South Korea into Vietnam may reach USD 10 billion. This year, several major projects could materialize, especially in the energy sector, with scales ranging from USD 3 to 6 billion. We are certain that we will continue expanding our investments,\u201d said Hong Sun, Vice Chairman of the Korea Chamber of Business in Vietnam (Korcham).<\/p>\n
Despite the ongoing and unpredictable developments of COVID-19, Vietnam\u2019s stable macroeconomic foundation and timely government policies for pandemic prevention and control have created an important premise for the economy to move firmly into 2022.<\/p>\n
The assessments of international experts and media outlets over the past week show that Vietnam\u2019s economy has been and is regaining strong growth momentum. Upcoming reopening signals are also expected to create new drivers for Vietnam\u2019s growth in the post-pandemic \u201cnew normal.\u201d<\/p>\n
Source: Cafef<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" According to Sputnik News, Vietnam is drawing increasing attention amid expectations that it will become the world\u2019s next manufacturing hub. Shifting from the \u201cZero COVID-19\u201d approach to \u201csafely living with the pandemic,\u201d Vietnam has demonstrated a suitable direction as its economy continues to recover. This not only helps the economy quickly regain growth momentum, but […]\n","protected":false},"author":1,"featured_media":471,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"\n