According to the article posted on July 9, Vietnam has become a major beneficiary of manufacturers’ efforts to “de-risk” their exposure to China, as geopolitical tensions accelerate.
Last year, foreign direct investment poured into the country soared to a decade high to over 20 billion USD. Big names including Dell, Google, Microsoft and Apple have all shifted parts of their supply chain to the country in recent years, and are looking to do more in the coming time.
Rapid export-led growth has pulled millions out of poverty in recent decades, but Vietnam’s economy is now at a crossroads, the article said.
In the near-term, to continue riding the wave of investor attention, it needs to bolster its business environment. In the long run, to meet the government’s ambitious goal of becoming a high-income economy by 2045, it must also leverage the manufacturing growth boon to diversify its economy, wrote the article.
The business excitement around Vietnam is justified. But there is much work to be done to convert today’s “de-risking” trend into long-term prosperity, the Financial Times suggested./.
