Vietnam is rated as an investment destination for companies around the world
Recently, according to Vietnam News Agency:
With companies having to find ways to relocate some of their production lines, Vietnam has been rated as an investment destination for companies around the world.
Henrik Bork, a consultant at Asia Waypoint Consulting, said Chinese electronics groups such as Luxshare Precision Industry, Goertek and Taiwan’s Pegatron, which assembles Apple products, are moving their factories to Moved to Vietnam.
Meanwhile, Japan’s Nikkei Asia magazine reported in early June that Apple was moving iPad production lines from China to Vietnam. Deutsche Welle (DW) reported that companies, especially those in the electronics industry, are investing heavily in Vietnam. In February, South Korea’s leading electronics group Samsung announced it would invest an additional $920 million in Vietnam.
Industry experts believe that global companies, including Apple, are shifting production activities to Vietnam,mainly because of China’s high labor costs and fierce U.S.-China trade competition.
U.S. President Joe Biden’s administration is working to diversify global supply chains, and Vietnam is seen playing an important role in this policy goal.
In addition, compared to other countries in the world, Vietnam has the advantage of a young labor force and a competitive manufacturing industry. Vietnam also has a maritime route system that facilitates export activities, which is a factor in many European Union (EU) and Asian countries signing free trade agreements with Vietnam.
Raphael Mok, an expert at consulting firm Fitch Solutions, said Vietnam will be one of the main beneficiaries of supply chain migration. Meanwhile, Daniel Müller, chairman of the German-Asia-Pacific Business Association, said Vietnam has always been an attractive destination for German companies.
Vietnam’s apparel exports are second only to China
Ranked 2nd in the world
Relevant representatives of the Vietnam Textile and Apparel Association said at the “Sustainable Cotton Supply Chain Seminar” that in the first half of 2022, Vietnam’s textile and apparel export performance will be good,The export volume will be approximately USD 22 billion, a year-on-year increase of 23%, a record high.
Vietnam’s apparel exports rank second in the world after China. Yarn exports are also increasing, with exports totaling US$5.6 billion in 2021 and expected to reach approximately US$3 billion from January to June 2022.
According to data reported by Vietnam’s “Investment News”, as of June 15, Vietnam’s total import and export volume reached US$337.85 billion, a year-on-year increase of 16.5%; of which, exports were US$168.28 billion, a year-on-year increase of 17% respectively; imports were US$169.57 billion, A year-on-year increase of 15.8%. Of the export volume of more than 160 billion US dollars, textile and clothing exports contributed 22 billion, accounting for approximately 13.75%.
Relevant people said that this achievement is due to the 15 effective and implemented free trade agreements signed by Vietnam. Under the influence of free trade agreements, Vietnam’s textile and garment industry has been able to open up a more open export market.
In recent years, Vietnam’s textile and garment industry has responded to global calls and developed rapidly in the field of green and sustainable development. Product R&D, production and sales gradually increase the use of clean energy, solar energy and other green energy. Some of the product raw materials are recycled or reused resources. At the same time, the production machines are improved into water-saving machines to better achieve the goal of ensuring quality and quantity. International standards have won the trust and recognition of customers and consumers.
In addition, experts analyzed and suggested that due to the impact of rising crude oil prices, shipping costs and rising raw material prices, corporate production costs have increased, which may lead to companies facing huge challenges. </span
