Mar 03, 2021 / 14:06

Vietnam holds potential to become new destination for global investors

Vietnam is currently home to 100 Swiss firms with a combined investment capital of nearly US$2 billion, including major names such as Nestle, Novatis, Roche, Holcim, and ABB.

Given the country’s positive progress in global economic integration, Vietnam holds potential to become new destination for global investors.

 Production of aircraft's components at MHI Aerospace Vietnam at Thang Long Industrial Park. Photo: Pham Hung

Vietnamese Ambassador to Switzerland Le Linh Lan made the statement in an online conference discussing Vietnam’s market economy on March 2 to mark the 50th anniversary of Vietnam-Switzerland diplomatic relation (1971-2021).

“While the global economy fell into a recession, Vietnam’s effective measures against the Covid-19 pandemic has helped the local economy maintained a positive growth of 2.9% in 2020,” noted Lan.

“The country’s strong efforts in digitalizing its economy and the technology competent workforce are plus points,” she continued.

Echoing Lan’s view, Trade Counsellor of Vietnam Nguyen Duc Thuong noted Vietnam has a huge network of industrial parks nationwide and extensive economic partnership with over 50 economies around the world, making the country an attractive investment destination.

According to Thuong, Switzerland is one of Vietnam’s major trading partners and its sixth largest European investor, for which 100 Swiss firms are currently operating in the country with a combined investment capital of nearly US$2 billion, focusing on manufacturing and processing, electricity.

International Business Advisor of consulting firm Dezan Shira & Associates Filippo Bortoletti said 112 countries and territories are having investment projects in Vietnam, while opportunities continue to arise given the country opening up for more business fields from electronic technology, chemicals to material production.

Marketing Manager of Vietnam-Singapore Industrial Park (VSIP) Nguyen Chi Toan attributed the country’s political stability, a large market and high-skilled labor force as factors to help attract FDI.

“There has been a shift in customer behavior towards online platform, which contributes to the digital transformation process,” he suggested.

Giving a more detail look on the operation of Swiss companies in Vietnam, Supply Chain Director of Nestle Vietnam Will Mackereth said the company is employing nearly 4,000 workers and remains among top three most efficient branches of the corporation worldwide.

According to Mackereth, Vietnam is one of Asian hubs for production and trade.

Two co-founders of The Happy Turtle Straw of Axel Armellin-Nguyen and Nhat Vuong said more local customers are turning to green products, which create room for the company to expand other green product lines of shoes and face masks made from coffee slurry, or straw, knives and forks from bamboo.