Will Vietnam become important link in global supply chain?

The US is planning to remove some of its supply chain out of China and has invited other countries for a dialogue on this issue, including Vietnam.

This is believed to be a great opportunity for Vietnam to become an important link in the global supply chain to take shape after Covid-19.

Will Vietnam become important link in global supply chain?



The US, Australia, Japan and India, the members of Quadrilateral Security Dialogue (Quad), have begun discussing the current issues including Covid-19 and the ways to prevent the spread of the epidemic, with the participation of three invited countries – Vietnam, South Korea and New Zealand.

According to Reuters, the key topic of the Quad-plus’s discussion is how to minimize the impact on the global economy through the ‘economic prosperity network’ initiative.

It is still unclear which countries will belong to the network, but the US administration is cooperating closely with Vietnam, South Korea, New Zealand, Australia, India and Japan, and these are countries targeted by the US in its plan to restructure the global supply chain.

It is still unclear which countries will belong to the network, but the US administration is cooperating closely with Vietnam, South Korea, New Zealand, Australia, India and Japan, and these are countries targeted by the US in its plan to restructure the global supply chain.

 



Dr Phung Duc Tung, director of the Mekong Development Research Institute, said the weakness of multi-national groups has been exposed in Covid-19: they concentrate production and depend too heavily on the Chinese market.

Covid-19 was the ‘final straw’ that forced the US and European countries to think of measures to ease or stop reliance on the Chinese market.

There are two more reasons for multi-national groups to advocate the Quad’s initiative: the production cost in China is increasing, while there are risks in doing business there because of intellectual property right protection problems.

Where will the groups go after leaving China? Vietnam and India are two good choices. And Vietnam has proved that its enterprises are capable of making high-technology products.

Tung said this is a great opportunity for Vietnam to join the world’s supply chain thanks to a series of advantages, including the labor force. Around 64 percent of Vietnam’s population is working age, while the labor cost is lower than China.

Vietnam’s great advantage that the US and western countries saw during the pandemic is political stability and the Vietnamese people’s confidence in the government in the fight against Covid-19.

Sharing the same view, Le Xuan Nghia, a member of the Prime Minister’s Economic Advisory Council, said this is an opportunity for Vietnam to recover its important strategic position to the US in Southeast Asia.

He believes that FDI, especially from the US, to Vietnam will increase after the dialogue and Vietnam will have good position on the map of FDI attraction.

Kim Chi 

Vietnam urged to tap global supply chain for halal products

Vietnam urged to tap global supply chain for halal products

As global supply chains for Halal products have been disrupted by the pandemic, Vietnamese companies have been urged to further tap the halal market which has export value of US$34 billion a year, experts said.  

Agribusinesses rocked by twin negative impacts

Agribusinesses rocked by twin negative impacts

In spite of several highlights, the agricultural picture remains gloomy due to twin blows of climate change and coronavirus.

 
 

Other News

.
Many hoteliers intend to divest capital due to heavy losses
Many hoteliers intend to divest capital due to heavy losses
BUSINESSicon  16/10/2020 

Over the past eight months, hotel room tariffs have plunged and hotel room occupancy rates have remained low, forcing several hoteliers to divest capital with many financially weak hotels in the local market being put up for sale.

Thai billionaire, European brewer lose money in Sabeco investment deal
Thai billionaire, European brewer lose money in Sabeco investment deal
BUSINESSicon  16/10/2020 

The Sabeco price has seen a strong recovery in the last half a year, but is still at a low price. Both Thai billionaire and the big brewer Heineken have lost money because of the drop in Sabeco share price.

Salary increases in 2020 lowest in 10 years: survey
Salary increases in 2020 lowest in 10 years: survey
BUSINESSicon  16/10/2020 

Salaries increased by 6.5% this year at multinational companies (MNCs) and 5.2% at Vietnamese companies, and are forecast to increase by 7 per cent and 7.7% next year, according to the Talentnet – Mercer Total Remuneration Survey.

State firms more resilient than foreign, Vietnamese private companies: survey
State firms more resilient than foreign, Vietnamese private companies: survey
BUSINESSicon  15/10/2020 

Business resilience is highly correlated with level of digitisation, the Business Pandemic Resilience Diagnostic conducted by Grant Thornton...

Pandemic a test of fire for Vietnamese enterprises
Pandemic a test of fire for Vietnamese enterprises
BUSINESSicon  15/10/2020 

The COVID-19 pandemic has been a test for Vietnamese businesses as many have been and will be struggling to recover for the foreseeable future. 

Five expy projects unlikely to attract private investors
Five expy projects unlikely to attract private investors
BUSINESSicon  15/10/2020 

Although the National Assembly Standing Committee has given its approval to switch three of the eight subprojects of the North-South Expressway from the public-private partnership (PPP) format into wholly State-invested, 

Only 5% FDI projects in Vietnam use high technologies
Only 5% FDI projects in Vietnam use high technologies
BUSINESSicon  15/10/2020 

Vietnam is home to 32,539 valid foreign direct investment (FDI) projects with registered capital of a combined US$381 billion, of which US$233 billion has been fully disbursed.

The Vietnamese brain will decide
The Vietnamese brain will decide
FEATUREicon  16/10/2020 

"Vietnamese have nothing but brains to develop the country in the future." 

Stable outlook expected for Vietnamese dong
Stable outlook expected for Vietnamese dong
BUSINESSicon  16/10/2020 

While Vietnam is at risk of being listed as currency manipulator by the US, such a risk appears low, as the US will likely continue to reduce its dependence on Chinese exports by reorganizing its supply chain with other partners.

Vietnam banking sector to suffer in 2020 before rebounding in 2021
Vietnam banking sector to suffer in 2020 before rebounding in 2021
BUSINESSicon  15/10/2020 

Fitch Solutions expected credit growth to weaken to 7% in 2020 from 13.7% in 2019, but the growth is predicted to pick up to 12% one year later.

Realising revised growth ambitions
Realising revised growth ambitions
BUSINESSicon  15/10/2020 

Vietnam’s fourthquarter economic outlook is brighter on the back of a rise in domestic consumption and public investment.

Businesses line up for further support
Businesses line up for further support
BUSINESSicon  15/10/2020 

Continued facing with massive woes, the business community in Vietnam is in dire need of the government’s assistance for investors and enterprises to struggle through the global health crisis and grabbing new business

Infrastructure development at the centre of PPP decree direction
Infrastructure development at the centre of PPP decree direction
BUSINESSicon  16/10/2020 

Further clarifying the legal framework for infrastructure development via wider participation of private investors is expected to help the country attract more funding into the industry.

Gov’t support aids automobile industry
Gov’t support aids automobile industry
BUSINESSicon  14/10/2020 

The domestic automobile industry was forecast to thrive, given the Government’s supports in tax policies for imported automobile components coupled with the increasing income of citizens.

Digital economy and fintech see growth amid COVID-19
Digital economy and fintech see growth amid COVID-19
BUSINESSicon  15/10/2020 

The Prime Minister’s Economic Advisory Group met with the local fintech firm MoMo in HCM City on Monday.

Vietnam Airlines reports huge losses
Vietnam Airlines reports huge losses
BUSINESSicon  14/10/2020 

Vietnam Airlines Group, listed as HVN on the HCM Stock Exchange, earned nearly VND24 trillion (US$1.04 billion) in total consolidated revenue in the first nine months of this year, marking an estimated loss of VND10.75 trillion, 

Vietnam to increase imports of coal and gas
Vietnam to increase imports of coal and gas
BUSINESSicon  14/10/2020 

The latest data from the ministry sent to the National Assembly shows that Viet Nam is transitioning from an energy exporter to a net importer.

Coastal developers prepare for good upcoming times
Coastal developers prepare for good upcoming times
BUSINESSicon  14/10/2020 

In anticipation for the world eventually opening back up for travellers, developers are exploring the high potential of Vietnam’s world-renowned coastal urban areas.

Tax relief should not be “One size fits all”
Tax relief should not be “One size fits all”
BUSINESSicon  14/10/2020 

The Private Economic Development Research Board, under the Advisory Council for Administrative Procedure Reform, has proposed a 30% reduction in corporate income tax for all businesses this year.

Big investors pour money into IZ projects as land fund declines
Big investors pour money into IZ projects as land fund declines
BUSINESSicon  15/10/2020 

The land rent in some industrial zones in Hai Phong, Bac Ninh and Hai Duong has increased by 20-30 percent.

 
 
 
Leave your comment on an article

OR QUICK LOGIN