great opportunity for vietnam to be a global production base picture 1

According to Nguyen Thang Vuong of the MoIT's Department of European and American Markets, Apple has completed the process of moving 11 Taiwanese enterprises’ factories in its supply chain to Vietnam.

Vuong notes that recently the trend of shifting global supply chains has taken place strongly, with several large corporations seeking to expand their networks and develop production facilities in the Vietnamese market.

For example, Intel has injected US$1.5 billion into its Vietnam project, while Danish toy manufacturer LEGO has poured US$1 billion into its plant in Binh Duong. Samsung Electronics has so far invested US$18 billion in Vietnam, and it plans to raise the investment to US$20 billion in the coming time.

Vuong says that other large corporations such as Boeing, Google, and Walmart are also studying the local business investment environment.

Economic experts believe that this is a great opportunity ahead for Vietnam to attract further FDI and develop its economy.

However, it is also a challenge for Vietnamese enterprises as they seek to join the global supply chain, forcing them to improve their product quality and increase the production of supporting industrial products.

Currently, Vietnamese firms have limited participation in the global supply chain and are not deeply involved in the value chain of multinational corporations operating in the country.

In addition, many key raw materials for production must still be imported.

Source: VOV