Experts explain why Vietnam is interested in becoming a manufacturing centre

DNHN - According to economist Vo Tri Thanh, director of the Institute for Brand Strategy and Competition, several large technology corporations in the electronics industry, including Foxconn, Apple, Xiaomi, Samsung, and others..have been and are tending to move to Vietnam, which is not entirely new, but increasingly demonstrates our attraction.

People have acknowledged Vietnam as a HUB (hub) of the processing and manufacturing business throughout the last ten years. Coming to Vietnam means entering the world's electronics sector, or if you want to enter the world, you should consider Vietnam. Because there are all the main players in the smartphone manufacturing business in our nation, such as Samsung, Xiaomi, or firms that create and assemble components for Apple.

Along with the move from other nations, particularly China, with the China + 1 investment policy, and many other causes such as the COVID-19 epidemic, trade war, and geopolitical volatility, global economic geography has positioned Vietnam as a destination for FDI.

According to Dr Vo Tri Thanh, Vietnam achieved the aforementioned results for two reasons: first, a stable macroeconomic picture with good growth, and second, the determination and efforts to reform the entire political system, particularly the political system institutional reform to improve the investment and business environment, as well as the real opening through many free trade agreements.

Thus, from a policy standpoint, Vietnam has been, is, and will continue to be a HUB for attracting FDI in the processing and manufacturing industries.

It is hardly surprising that high-quality FDI is expanding in Vietnam. Dr Vo Tri Thanh stated that, in addition to the previously mentioned benefits of a stable economy and politics, institutional reform initiatives have two aspects that contribute to Vietnam's advantages.

"When discussing China + 1, aside from Vietnam, there are numerous rivals, therefore they must not only improve themselves but also compete with other nations. Thus, if you want to attract FDI, if we have quality, we must put the project's efficiency and spillover in the headlines for investors "Mr Thanh stated.

The project must address not just labour and export advantages with tax breaks from FTAs, but also pervasiveness, technology, and changes in management capabilities. Select initiatives that improve efficiency while also having the potential to expand to domestic firms in technology and skills, particularly in supporting sectors.

In contrast, high-quality FDI necessitates Vietnam's commitment to sustainable development; input must be "green," including green energy. Aside from the digital environment, this is a critical factor for organizations to be current and synchronous.

Lam Nghi