The boosters point to Viet Nam’s solid record in making products to global standards, and to a widening network of free trade agreements, including recently with the EU and the UK, according to the article.
Apple began mass production of some of its AirPods wireless ear buds in Viet Nam in the second quarter of this year, when most of the world was in lockdown, the Financial Times highlighted.
Regarding disadvantages in labor markets and infrastructure for foreign firms operating business in Viet Nam, the article also stressed many of the components used to manufacture high-value products in Viet Nam, from microchips to smartphones, are still sourced from China, South Korea, Chinese Taipei or elsewhere, and flown in for assembly there.
Businesspeople say the Vietnamese market is adjusting to all these difficulties, even amid the pandemic. New business park developments are on their way.
For example, GLP, Asia’s biggest warehouse operator, is developing projects in Ha Noi and greater Ho Chi Minh City and plans to invest US$1.5 billion over three years as it ramps up its Vietnamese business, the article referred to large-scaled foreign-invested project in Viet Nam.
Viet Nam’s big numbers remain robust, the Financial Times appraised Viet Nam’s efforts in maintaining economic growth, adding that despite the pandemic, foreign direct investment disbursements are down only 2% in the year to November, at US$17.2 billion, according to Viet Nam’s General Statistics Office.
The Vietnamese economy is on track to grow by 2.4% this year, and for 2021 the government is targeting growth of 6.5%.
Analysts say multinationals in Viet Nam are now building up their supply bases. “We are now seeing a proper build-out of supply chains here” said Michael Kokalari, who is chief economist with VinaCapital in Ho Chi Minh City.
Source: Thuy Dung - news.chinhphu.vn