Vietnam remains top destination in Asia for MNCs' shifting production out of China
Microsoft and Google are stepping up efforts to relocate production of new devices from China to potential sites in Vietnam.
![](http://media.hanoitimes.vn/2021/05/14/logo_hntimes.png)
As of last October, of the 33 companies that had shifted production out of China since its trade spat with the US began, 23 have moved to Vietnam, with the rest relocating to Malaysia, Thailand and Cambodia, Nikkei Asian Review cited data from the World Bank.
Vietnam remains top destination in Asia for multinationals shifting production out of China. |
Indonesia ranks higher than rival Vietnam in the United Nation's Competitive Industrial Performance Index. Mean monthly earnings for both medium-skilled and low-skilled workers in Indonesia are lower than in Vietnam, according to the World Economic Forum.
However, Indonesia has historically struggled to attract foreign direct investment (FDI), which was equal to just 1.8% of the country's gross domestic product in 2018. That was a lower share than regional competitors Vietnam, Thailand and Malaysia.
"Economies that are more likely to benefit from such geographical diversification are those with higher degrees of export similarity [to] China, and therefore [have] supply chains already in place," Nikkei quoted a recent report published by the Citigroup. "Vietnam, India, Malaysia, Taiwan and Thailand could therefore be near-term beneficiaries."
Already US tech leaders such as Microsoft and Google are stepping up efforts to relocate production of new devices from China to potential sites in Vietnam and Thailand. Apple will produce millions of its AirPod wireless earphones in Vietnam for the first time this quarter.
FDI to Vietnam in May is estimated at US$1.55 billion, the highest monthly figure since February. The data indicates a positive sign that foreign investors are accelerating their projects’ progress as the Covid-19 pandemic has been initially contained in Vietnam.
Overall, disbursement of FDI projects in Vietnam totaled US$6.7 billion in the first five months of 2020, representing a decline of 8.2% year-on-year as impacts from the Covid-19 grew.
Prime Minister Nguyen Xuan Phuc on May 23 agreed to set up a task force that will help the country prepare for new wave of FDI inflows in the post-Covid-19 period.
This task force is responsible for promoting investments in the country, which can be done by approaching potential investors looking for new destinations and supporting those who are having difficulties in Vietnam.
Other News
- Vietnam Railway proposes US$87 million for Hanoi–Dong Dang railway upgrade
- Vietnam’s North-South high-speed railway to be designed for 350km/h
- Vietnamese gov’t urged to address impact of global minimum tax
- Samsung plans drastic investment increase in Vietnam over next three years
- Vietnam to set up cultural heritage conservation fund
- FedEx expected to develop airports in Vietnam
- Over US$4.6 billion poured into Vietnamese startups in past decade
- Nvidia, FPT invest US$200 million in AI factory
- US-based Rosen Partner to invest in world-class entertainment complex projects in Vietnam
- Foreign capital set to dominate Vietnam’s M&A landscape
Trending
-
State Funeral held for Communist Party Chief Nguyen Phu Trong
-
Vietnam news in brief - July 26
-
Legal tools required to tackle air pollution issues in Hanoi
-
How fake news hooks us?
-
South Korean writer spends 10 years on book about CPV General Secretary
-
Rustic charm of Hanoi's street vendors: Timeless beauty
-
iHaNoi sees 52,000 registered accounts, 20,000 daily visits
-
Youth-Led Environmental Initiative in Hanoi
-
Unique lotus flower art on display in Hanoi