Illustrative image (Photo: VNA) Hanoi (VNA) – Vietnam has increasinglybecome a burgeoning industrial hub, especially for tech and apparel,wrote an article published by India’s stattimes.com onJanuary 14.
The article said while parts of Asia are still recovering from theglobal pandemic, Vietnam’s economy has boomed, reaching an impressive 8.02% increasein GDP by the last quarter of 2022 – that’s faster than other major regionaleconomies in Asia. Its export revenue hit 372 billion USD, up 10% year-on-year.
Explaining the boom of Vietnam’s industry, it said partof the reason is the disruption to supply chains on the Chinese mainland,Asia’s largest manufacturing hub, as factories were subject to shutdowns duringCOVID-19. Companies turned to alternative locations to continue and diversifytheir production streams.
Moreover, Vietnam has a competitive labour forceand low manufacturing costs. It has ayoung and growing population of 97 million, 70% of whom are under 35 – that’s aconsiderable labour force for the manufacturing industry.
Production lines at VinFast's factory. (Photo: VNA) The article also noted that Vietnam is strategically located along a strip of 3,200km coastlinewhich makes the country, particularly the north, an effective location forshipping cargo in and out. The government has been investing in developmentprojects to improve the country’s infrastructure, particularly in thenortheastern cities, to create a more attractive travel destination, andultimately a more connected port and industrial hub, it said.
Another reason is that more companies are moving in Vietnam which is theworld’s second-largest manufacturer of tech and apparel, with big brands likeNike, Adidas and Samsung operating across the country. Google’s newest Pixelphone, too, will be made in Vietnam, while Microsoft started shipping Xbox gameconsoles from Ho Chi Minh City in 2022.
Reports have also emerged that Apple supplierFoxconn is investing 300 million USD to expand their factories in the north ofthe country, and Dell, HP, Nintendo and Lenovo are all planning on setting upplants in the country as well.
Additionally, the Vietnamese government has beenmaking strong efforts to make trade easier between Vietnam and the rest of theworld. The nation has signed several free trade agreements with the EU, UK andnations across the Asia-Pacific, opening up the country to more tradeopportunities, especially to the west.
Another strong driver of trade is the Regional Comprehensive EconomicPartnership deal to which Vietnam is a member, the article said./.
