- Tram Ho
According to The Economist, since Vietnam opened its economy, the number of products with the words “Made in Vietnam” has increasingly appeared in the world, in 13 different languages. Since 2000, Vietnam’s GDP has grown faster than other Asian countries, averaging 6.2% per year.
Accordingly, Vietnam has attracted large foreign companies, starting with apparel manufacturers such as Nike and Adidas and now a boom in the electronics sector. In 2020, electronic products accounted for 38% of Vietnam’s merchandise exports, up from 14% in 2010.
The trade war between the US and China that started in 2018 has helped Vietnam benefit. In 2019, Vietnam produced nearly half of the total $31 billion in US imports. In addition, China’s restrictions before the Covid-19 pandemic and high labor costs, have caused many large companies to move to Vietnam. Apple’s biggest suppliers such as Foxconn and Pegatron, which make AppleWatch, MacBook and other devices, are building large factories in Vietnam and look set to join the ranks of Apple’s biggest employers. country.
Besides, many other big names are also planning to move production lines from China to Vietnam such as Dell and HP (laptops), Google (phones) and Microsoft (game consoles).
According to The Economist, the fact that many technology companies plan to manufacture in Vietnam can help the economy grow higher here and help millions of Vietnamese people become richer in the future. By moving from low-cost garment manufacturing to sophisticated electronics that require investment and skilled labor, the Vietnamese government hopes to reach its target of GDP per capita that could exceed $18,000. in 2045.
Compared to other countries in the region, Vietnam has a younger and more dynamic workforce. Not only that, but Vietnam is also a member of many free trade agreements, allowing easier access to national markets. Besides, Vietnam also has favorable geographical conditions, such as more than 3,000 km of coastline.
However, according to The Economist, compared to China, Vietnam’s production facilities are still in their infancy. Therefore, it is difficult for foreign companies to find and buy domestically produced materials.
“There is still much work to be done if Vietnam’s manufacturing sector wants to move further in the global value chain,” said The Economist.
Hanpo Vina factory in Bac Ninh is an example. This is a rare domestic supplier of spare parts for Samsung. However, according to Mr. To Ngoc Phuong, General Director of Hanpo Vina Joint Stock Company, the parts that the business creates are just some of the simplest parts in Samsung’s Galaxy phones.
Foreign investment can help Vietnam, but it will take time to show results. Next year, Samsung will open a research facility in Hanoi. At the same time, Samsung is also considering establishing semiconductor factories in the country.
Regarding the labor factor, The Economist said that the labor force in Vietnam is abundant, but the number of good managers or skilled technicians is extremely rare. Therefore, Vietnam’s university and vocational training programs need to be promoted.
“If Vietnam wants to become as rich as China, or Japan, Korea, Vietnam will have to invest not only in infrastructure but also in its workforce,” emphasized The Economist.
Source: The Economist
Source : Genk