Foreign giants pull components manufacturers to Vietnam

The influx of multinational corporations into Vietnam will help the country become more attractive to many other foreign components suppliers and solidify its position as a global manufacturing hub.

Foreign giants pull components manufacturers to Vietnam

Foreign parts manufacturers head to Vietnam as giant firms flock to the country

Foreign parts manufacturers, especially in the electronics industry, are coming to set up production bases in Vietnam in the wake of the investment wave of multinational corporations in the country.

It is reported that many Japanese parts manufacturers have invested in Vietnam to become supply chains for multinational corporations.

Murata Manufacturing Co has four factories producing electronics parts in Vietnam while Sharp and Sumitomo Electric also manufacture camera modules and connectors in the country, respectively.

The same move is also seen with South Korean parts manufacturers, especially when big names from the country, including Samsung, have invested significantly in Vietnam. Samsung has announced requirements of around 500 vendors for its factories in Vietnam next year.

In the aviation sector, recent investments by leading global manufacturer of aircraft components American Universal Alloy Corporation (UAC) in the central city of Danang is also helping Vietnam lure many foreign parts manufacturers.

According to UAC’s Chief Operating Officer Kevin Loebbaka, the corporation will develop a chain of parts supply manufacturers, which will employ some 2,000 workers, to meet its production plans.

The trend is forecast to continue as foreign giants are making commitments to bring more investors to Vietnam. As in the case of Samsung, during a recent meeting with Prime Minister Nguyen Xuan Phuc, General Director of Samsung Vietnam Choi Joo Ho said, while expanding operations in Vietnam, the group will make an effort to call for investment from other South Korean enterprises to this country.

Global manufacturing powerhouse

According to experts, the influx of multinational corporations into Vietnam will help the country become more attractive to many other foreign components suppliers and solidify its position as a global manufacturing hub.

Deputy managing director of Thai Reed Tradex Co Suttisak Wilanan said foreign electronics parts manufacturers will head to Vietnam as giant firms flock to the country, adding this is good for Vietnam and the supporting industries themselves as the country has a growing electronics manufacturing industry and one of the lowest labor costs.

 

Vietnam is a destination for low-cost manufacturing, but it will also climb the learning curve. Vietnam will be able to do more value-added activities such as developing its own tooling. In five to 10 years, the country will develop the capability to become a turnkey manufacturing center.

Besides, the on-going US-China trade war has added new energy to the debate over whether importers should shift production to Vietnam.

According to Virginia B. Foote, co-chair of the Vietnam Business Forum, Vietnam has outperformed many of its peers in attracting FDI, with examples in manufacturing and infrastructure, services, consumer goods, and agricultural and industrial products.

There are tremendous opportunities in Vietnam for both domestic and foreign business sectors, said Foote, adding the US-China trade tensions have highlighted the risk of concentrating production bases in a single country and are triggering supply chain reorganization. Companies are considering shifting some production flows, and Southeast Asia will compete to gain some of that business.

Reports from the Ministry of Planning and Investment’s Foreign Investment Agency also showed that the manufacturing sector retains the most attention among foreign investors in Vietnam. The total newly-registered FDI capital in this sector reached US$9.06 billion last year, making up 50.5 percent of the country’s total newly-pledged FDI.

The trend continued in the first five months of this year, with FDI hitting a four year high of US$16.74 billion, a year-on-year increase of 69.1 percent. Out of 19 sectors receiving capital, manufacturing and processing came on top with US$10.5 billion, accounting for 72 percent of total FDI. Hanoitimes

Foreign investors pour money into Vietnam’s e-commerce despite big losses

Foreign investors pour money into Vietnam’s e-commerce despite big losses

Many foreign giants have continuously invested in leading e-commerce sites in Vietnam even as they incur big losses as they continue to see the long-term potential of the country’s rapidly expanding online shopping sector.

Foreign investors net purchase US$388 million of Vietnam shares

Foreign investors net purchase US$388 million of Vietnam shares

The ongoing revision of Vietnam’s securities law is expected to remove restriction for foreign ownership limit at local companies.  

Foreign mobilephone manufacturers flock to Vietnam amid Chinese rise

Foreign mobilephone manufacturers flock to Vietnam amid Chinese rise

Samsung has affirmed that it will continue us to choose Vietnam as its biggest production base, from which Samsung’s mobile phones will go to the world market.

 
 

Other News

.
Freedom on the Internet must ensure human rights in cyberspace
Freedom on the Internet must ensure human rights in cyberspace
FEATUREicon  28/08/2020 

Vietnam’s consistent view is not to prohibit the development of Internet, but its 'reverse side', which is contrary to cultural identity, national customs and traditions, and hinders social development.

Korean woman impressed with free Internet services in Vietnam
Korean woman impressed with free Internet services in Vietnam
FEATUREicon  27/08/2020 

On Youtube, Kim Hye Ri, a former student at the Vietnamese studies faculty, Korea University of Foreign Languages said that she used to think South Korea was paradise for Internet and wifi, but she changed her thinking after a visit to Vietnam.

Meeting with PM Phan Van Khai opens way for Internet to enter Vietnam
Meeting with PM Phan Van Khai opens way for Internet to enter Vietnam
FEATUREicon  26/08/2020 

The Internet was introduced to Vietnam quite late compared to other countries in Southeast Asia. 

Breaking the monopoly: key to the power industry development
Breaking the monopoly: key to the power industry development
FEATUREicon  25/08/2020 

Vietnam needs an electricity power policy under which the market rules, investors make a profit, and the poor can afford electricity.

Aviation traditions crumble as airlines take on new restructuring approaches
Aviation traditions crumble as airlines take on new restructuring approaches
FEATUREicon  29/08/2020 

It is undeniable that the aviation industry has contributed greatly to the development of the global economy, accounting for roughly 3.6 per cent of total global GDP. 

Stone collectors with valuable objects of prehistoric time
Stone collectors with valuable objects of prehistoric time
FEATUREicon  22/08/2020 

For the past 30 years, Van Dinh Thanh has travelled widely to collect ancient stones, which have helped scientists and ordinary people understand more about prehistoric times.

The highs and lows of Hanoi Chairman Nguyen Duc Chung
The highs and lows of Hanoi Chairman Nguyen Duc Chung
FEATUREicon  20/08/2020 

Hanoi Peopel's Committee Chairman Nguyen Duc Chung, who has been suspended from duties, over the years has engaged in a number of memorable activities and made impressive statements as the Hanoi Police Director and Hanoi Mayor.

Are live-streaming theater performances viable?
Are live-streaming theater performances viable?
FEATUREicon  23/08/2020 

The pandemic crisis has had a devastating effect on the performing arts. Watching theater, opera, and dance without leaving home sounds promising and is a good way to support artists. The show must go on…line!

Vietnam raises contributions to global effort to respond to climate change
Vietnam raises contributions to global effort to respond to climate change
FEATUREicon  07/08/2020 

The updated NDC of Vietnam identifies mitigation measures for the 2021-2030 period, and strategic adaptation tasks and measures to minimize damage caused by climate change that are specific to each sector.

Young people involved in Vietnam’s fight against COVID-19
Young people involved in Vietnam’s fight against COVID-19
FEATUREicon  04/08/2020 

Young Vietnamese at home and abroad are striving to contribute to the country’s fight against COVID-19 in their own way, believing that everyone has a role to play for the sake of their homeland.

From member to chair: 25 years of Vietnam in ASEAN
From member to chair: 25 years of Vietnam in ASEAN
FEATUREicon  28/07/2020 

Vietnam became the seventh member of the Association of Southeast Asian Association of Nations (ASEAN) on July 28, 1995, marking a milestone in the country’s integration into regional affairs as well as in regional co-operation.

Footsteps on a well-worn path
Footsteps on a well-worn path
FEATUREicon  03/08/2020 

Visitors to the Ho Chi Minh Museum on Ngoc Ha Street in Hanoi are able to take home a special, very Vietnamese souvenir -- rubber sandals made from old car tyres.

National dress deserving of UNESCO recognition
National dress deserving of UNESCO recognition
FEATUREicon  02/08/2020 

Some years ago, Tran Doan Lam, director of the World Publishing House, felt a little uneasy when attending an event during a business trip abroad, where delegates were asked to wear their national costume.

Vietnam – a proactive, responsible and leading member of ASEAN
Vietnam – a proactive, responsible and leading member of ASEAN
FEATUREicon  28/07/2020 

Since becoming a member of ASEAN 25 years ago, Vietnam has developed into an important member of the group and has significantly contributed to elevating the bloc’s position and consolidating the centrality of ASEAN within the region.

Former enemies heal the wounds and become friends
Former enemies heal the wounds and become friends
FEATUREicon  28/07/2020 

In March 1968, Ho Dai Dong and Stephens Nash Edmunds were on two sides of the battle in Chu Tan Kra Mountain.

From Russia with love for Vietnamese folk songs
From Russia with love for Vietnamese folk songs
FEATUREicon  23/07/2020 

Hearing them sing the Vietnamese folk song Bèo Dạt Mây Trôi (Floating Water Ferns and Wandering Clouds) would leave any listener holding their breath as it is so sweet.

At the cutting edge of AI
At the cutting edge of AI
FEATUREicon  21/07/2020 

Twenty-three-year-old Hoang Trung Hieu from HCM City has delved deeply into engineering and technology since he was a little boy.

New concept needs new approaches
New concept needs new approaches
FEATUREicon  19/07/2020 

HCMC’s “Eastern City” initiative is of strategic importance to national development.

Japanese companies enticed by local investment climate
Japanese companies enticed by local investment climate
FEATUREicon  17/07/2020 

Driven by new encouraging policies and motivations, more fresh opportunities will be coming for Japanese investors in Vietnam, expecting a new investment wave ahead.

The online talks between US Ambassador Daniel Kritenbrink and VietNamNet readers
The online talks between US Ambassador Daniel Kritenbrink and VietNamNet readers
FEATUREicon  14/07/2020 

On the occasion of the 25th anniversary of Vietnam-US diplomatic relations, VietNamNet invited the US Ambassador to Vietnam Daniel Kritenbrink to join an online talks with our readers.

 
 
 
Leave your comment on an article

OR QUICK LOGIN