Sputnik: Why global technology giants favour Vietnam?

Northern Vietnam has attracted many international giants, especially those in electronics, thanks to its complete infrastructure.
Sputnik: Why global technology giants favour Vietnam? ảnh 1Assembling smartphones at Samsung Electronic Vietnam Thai Nguyen, Yen Binh Industrial Park, Thai Nguyen province. (Photo: VNA) 

Hanoi (VNA) – Northern Vietnam has attracted many international giants, especially those in electronics, thanks to its complete infrastructure.  

Sputnik news agency cited Cushman & Wakefield, one of the world's largest commercial real estate services firms, as saying that as the global manufacturing industry is looking to diversify its supply chains to avoid dependence on one country, along with favourable geographic conditions and attractive investment policies, the North of Vietnam is fully capable of becoming an 'extended arm' of the world's factory and the global centre for the production of electronic components. 

Why do the world's electronics giants like Apple, Samsung, Intel and LG choose Vietnam for their investment? 

Sputnik quoted a recent article by Cushman & Wakefield, explaining why Vietnam attracts attention and is emerging as a new hub of production, processing and manufacturing.

According to Cushman & Wakefield, northern Vietnam has attracted many big electronic companies worldwide with a favourable location near major economies and good infrastructure connectivity. 

It said the North currently has 13 highways connecting the northern provinces to Hanoi, totalling 895.8km. The road network covering the whole territory acts as the main connection for the transport network between industrial zones, airports, seas, border gates, and important traffic hubs. 

Besides, according to the road network planning for 2021-2030, it is expected that the North will have 14 expressways with a total length of about 2,300 km and 4 to 6 lanes. 

The region also has six railway routes: the Hanoi - Hai Phong, Hanoi - Lao Cai, Hanoi - Dong Dang, Hanoi - Quan Trieu, Kep - Luu Xa, Kep - Uong Bi - Ha Long and the North-South axis. 

As for air transport, the North has seven passenger airports, namely Noi Bai, Van Don, Cat Bi, Tho Xuan, Vinh, Dien Bien, and Dong Hoi, of which Noi Bai international airport has a specialised cargo terminal with a capacity of 403,000 tons of cargo per year, according to the Ministry of Transport.

Regarding sea transport, Cushman & Wakefield noted that the North has the strongest increase of 154% from 2017 to 2021 in exports through seaports, compared to the rest of the regions.

Another advantage of the region is its convenient geographic location. Sputnik said its adjacency to China, the world's top manufacturing hub, makes it more appealing to world electronic giants and foreign investors when they consider shifting their production bases.  

"The North of Vietnam has a direct road, sea, and rail route connecting to Shenzhen, known as China's Silicon Valley, creating favourable conditions for businesses wishing to expand and diversify production in the region," Sputnik said, quoting Cushman & Wakefield's writings. 

Sputnik: Why global technology giants favour Vietnam? ảnh 2A production chain at a factory in VSIP Bac Ninh (Photo: VNA)

Cushman & Wakefield cited the Vietnamese Ministry of Planning and Investment statistics, which showed the first nine months of 2022 saw a total registered FDI capital of nearly 18.8 billion USD. Bac Ninh is third in the country, with a total registered capital of nearly 1.78 billion USD, accounting for 9.5% of total capital. Thai Nguyen, Hai Phong, Hanoi, and Bac Giang followed as the provinces to have attracted the most FDI inflows in recent years.

Industrial parks in the North received a wave of investment from global electronics enterprises from early on, such as Panasonic (1971), LG Display (1995), Canon (2001), Foxconn (2007), Samsung (2008), Fuji Xerox (2013). More recently, corporations such as Pegatron, Goertek, and Jinko Solar, the article of Cushman & Wakefield said. 

"With favourable geographical features, coupled with strong investment in infrastructure and a series of policies to promote investment from the Government, it can be said that the North of Vietnam has what it takes for "queen bees" to nest and further contribute to Vietnam's GDP," according to Trang Bui, General Director of Cushman & Wakefield./.

VNA

See more

The article published by Resumen Latinoamericano (Screenshot photo)

Argentine media praises Vietnam’s economic diplomacy efforts

Vietnam continued efforts to connect with global partners, especially those to explore new growth drivers in Latin America, the Middle East-Africa, and G7 industrialised nations via external affairs and diplomatic activities of Party and State leaders, according to local Argentine media.

Japanese Prime Minister Shigeru Ishiba (left) and his Malaysian counterpart Anwar Ibrahim at the joint press conference. (Photo: Kyodo/VNA)

Japan strengthens commitment to Southeast Asia

Japanese Prime Minister Shigeru Ishiba on January 10 met with his Malaysian counterpart Anwar Ibrahim during his visit to the Southeast Asian country, pledging to enhance cooperation in addressing urgent regional and international challenges, including tensions in the East Sea, the Middle East, and the ongoing crisis in Myanmar.

Foreign tourists in Thailand. (Photo: seasia.co)

Thai tourism ends 2024 on a high note

The Tourism Authority of Thailand (TAT) has reported a strong end to 2024, welcoming 35.5 million international visitors and surpassing expectations.

Cambodia records first death from H5N1 in 2025

Cambodia records first death from H5N1 in 2025

A 28-year-old man from Cambodia's southeast Kampong Cham province died of H5N1 human avian influenza on January 10, becoming the first death in 2025, according to the Cambodian Ministry of Health.

Le Champ Tu Le Resort Hot Spring & Spa in Yen Bai province (Photo: VNA)

Vietnam, India, Indonesia set for travel “bonanza”

Vietnam, India, and Indonesia are set for a tourism “bonanza” as their middle classes expand and grow wealthier, India’s Economic Times quoted deputy chief executive officer of hotel group Accor SA Jean-Jacques Morin as saying.

Illustrative image (Photo: Bangkok Post)

Myanmar ranks second in Thai condo sales

Thai condo transfers to Myanmar buyers ranked second in the first nine months of 2024, setting a new record last year as the nine-month figure already surpassed that recorded in 2023.

A heavily congested road in Bangkok on January 9, 2025. (Photo: Bangkokpost.com)

Technology helps Thai capital ease congestions

The Area Traffic Control (ATC) technology and other innovations have reduced travel time in busy spots in Bangkok by 25% after two years of implementation, according to the Bangkok Metropolitan Administration (BMA).

Japanese Prime Minister Shigeru Ishiba (L) and Malaysian Prime Minister Anwar Ibrahim at a joint press conference after talks on the outskirts of Kuala Lumpur on January 10, 2025. (Photo: Kyodo News)

Japan, Malaysia concur in stepping up security cooperation

Malaysian Prime Minister Anwar Ibrahim and his visiting counterpart Ishiba Shigeru on January 10 agreed to strengthen ties to ensure regional security based on the rule of law and build robust supply chains, seeking to cement their comprehensive strategic partnership.

Mount Merapi emits 17 lava flows with a maximum reach of 1,800 meters on January 4, 2025. (Photo: jakartaglobe.id)

Indonesia issues safety warning as Mount Merapi erupts

Mount Merapi, located near the densely populated city of Yogyakarta, the capital of the Special Region of Yogyakarta in Indonesia, emitted hot lava on January 10, prompting the country's Volcanology and Geological Disaster Mitigation Centre to issue a warning for the safety of nearby residents.