(Illustrative photo: VNA) Hanoi (VNA) - VietnamBriefing, a business news website on doing business in Vietnam, recently published an article highlighting the country’s special factors in attracting foreign investors compared to other regional production sites.
Vietnam’s supply chains have significantly evolved from how they were a decade ago, the article said, noting that among the countries competing for investment, Vietnam has emerged as a highly effective alternative for relocation in Southeast Asia.
“Vietnam’s pursuit of foreign investment, competitive costs, free trade agreements, and liberal investment environment have made it an ideal location for investors seeking to reduce costs and diversify supply chains,” it said.
The writing also analysed Vietnam’s competitive edge in terms of labour costs, political climate, infrastructure, working environment and flexible administrative system.
A production line of Toyota in Vinh Phuc, Vietnam (Photo: VNA) It quoted Dustin Daugherty, Head of North American Desk for Dezan Shira & Associates, as saying that Vietnam enjoys a high degree of regional diversity, and the North, Center, and South all have particular competitive advantages for different industries and types of businesses.
The article reported that Vietnam spends up to 5.7 percent of its GDP to improve transport infrastructure and logistics. A total investment value of 120 billion USD has been planned for PPP projects in the road and power sectors.
Daugherty noted that Vietnam is still a rather unfamiliar market for new investors. Investors have to play the long game and look at Vietnam as a long term investment to be able to manage risks.
While Vietnam stands to be affected by the COVID-19 pandemic, its overall positive growth rate provides a partial buffer, the article concluded./.
