The nation is becoming an important link in the Asian supply chain, a new destination for a number of businesses that need to diversify their supply chains, according to international media.
Vietnam is becoming an important link in the Asian supply chain
Japan’s Nikkei Assia reported that Vietnam is attracting world’s major chip manufacturers. In addition to Apple, Samsung, and Panasonic, which are expanding their scales, the US Company Synopsys has recently said it will support engineer training and establish a chip design center in the Southeast Asian nation.
It’s worth noting that Vietnam is increasingly attracting more and more high-tech groups.
Okuda Yoshiki, development advisor of the Japan International Cooperation Agency (JICA) said that in the past, not only Japan, but many other countries relied on Chinese production. However, the impact of the COVID-19 pandemic caused disruption to supply chains. Currently, shifting factories to Vietnam is becoming a trend of great concern to Japan, he went on to say.
According to Retail News, a page providing the latest retail news throughout the Asian retail market on a daily basis, Boeing wants to develop its supply chain in Vietnam by making more domestic businesses its suppliers.
The Vietnam Briefing page had an article “Why Vietnam becomes a promising choice for American businesses in Asia”, which cited Vietnam’s skilled and low-cost workforce, stable infrastructure, safe environment, and free trade agreements.
Chairman of the European Chamber of Commerce in Vietnam (EuroCham) Alain Cany stated that Vietnam needs to continue to maintain a reliable and consistent policy on work permits, including those for experts, and length of stay, while ensuring coordination between central and local authorities in order to further attract foreign investors.
The Vietnamese government is on the right track and growth will be sustained in the coming months, he added.
The stable foreign investment and major groups intensifying their supply chains to Vietnam are a testament to the government's flexible economic policy and a positive outlook for the Vietnamese economy in the time ahead.