return icon Vietnamnet.vn

Vietnam told to prepare for new foreign investment wave

Vietnam will have to compete with many rivals to attract foreign investors who are considering relocating their production bases out of China.

Soon after the US-China trade war broke out, multi-national groups began thinking of leaving China for other countries to ease reliance on Chinese materials. They have accelerated the process because of Covid-19.

 

{keywords}

 



Apple has recruited Vietnamese workers recently, a move to reportedly prepare for the establishment of a factory in Vietnam. Samsung has reportedly thought of relocating production lines of some high-end smartphones to Vietnam.

However, according to Nguyen Mai, chair of the Vietnam Association of Foreign Invested Enterprises (VAFIEs), Vietnam is just a runner in the race to attract foreign investors and has to compete with many competitors from Asia.

Soon after the US-China trade war broke out, multi-national groups began thinking of leaving China for other countries to ease reliance on Chinese materials. They have accelerated the process because of Covid-19.

India has launched policies with attractive incentives to lure 1,000 US companies which have production activities in China. India prioritizes medical equipment, food processing, textile and garment, and car part manufacturing companies.


Indian officials said though the total cost in India is higher than China, it is still lower than in the US and Japan, if considering land and skilled workers.

Thailand has also ‘turned a green light’ on for foreign investors by setting a series of new investment attraction policies.

Malaysia in mid-2019 launched a 1 billion ringgit ($240 million) investment support program, committing tax and financial support to foreign investors who choose the country as the destination.

JLL, in its recent report which analyzes policies on attracting foreign investment in the ‘new normal period’, pointed out that Vietnam is not the most attractive destination.

The wages in China are triple those in Vietnam, but the skills of Chinese workers are better than Vietnamese. The number of migrant industrial workers in China is even higher than the Vietnamese population. A large volume of manufactured goods are reserved to serve the Chinese market.

Meanwhile, not all production fields in Vietnam are prepared to receive the new foreign investment flow. These include supporting industries which are believed to ‘receive little optimistic information from the new opportunities’.

Truong Thi Chi Binh, deputy chair of the Vietnam Supporting Industries Association, also said other regional countries have greater advantages. Vietnam’s enterprises are small with under 200 workers, and they can only fulfill small orders. Most of them just make separate devices and only a few can make sets of components.

Therefore, Mai said Vietnam needs to take action quickly to become more competitive in the race to lure investors – improving infrastructure, technology and labor force, simplifying procedures and shortening licensing formalities, and supporting investors to implement projects quickly.

Thanh Mai 

 

When Apple comes to Vietnam and FDI flow starts moving

When Apple comes to Vietnam and FDI flow starts moving

Apple is making clearer signals in the production of components and products in Vietnam, opening up opportunities for Vietnam to participate more deeply in the global value chain.  

Where will FDI head after leaving China?

Where will FDI head after leaving China?

Foreign investors are considering relocating their production bases out of China, and many of them are heading for Vietnam.

MORE NEWS

Shelter cares for 20 breast cancer patients in HCM City

No longer allowed to stay in a hospital, a breast cancer patient sold her house to rent and provide a shelter for 20 patients coming from all over the country to Ho Chi Minh City for chemotherapy and radiation treatment.

G&P Global Ratings raises Vietnam’s sovereign credit rating

The S&P Global Ratings on May 26 raised its long-term sovereign credit rating on Vietnam to “BB+” with a “stable” outlook on the back of strong economic recovery, according to the Ministry of Finance.

Domestic airlines offer millions of tickets for summer travel season

Anticipating that travel demand during the upcoming summer will rise sharply, and even higher than the pre-pandemic levels, local carriers are offering millions of air tickets.

American doctor’s endless love for Vietnamese ethnic minority cultures

When listening to him talk for hours and hours about the objects he found by chance on trips to different mountainous regions, it is easy to see Mark Rapoport's passion for the ethnic groups of Vietnam.

Two new Viettel inventions granted exclusive protection certificate in the US

Viettel Aerospace Institute (VTX), a member of Viettel Group, was officially granted an exclusive protection certificate by the US Patent and Trademark Office (USPTO) for two works in the field of optoelectronics and materials industry.

SEA Games 31 fuels recovery of local tourism industry

The hosting of the recent 31st Southeast Asian Games (SEA Games 31) between May 12 and May 23 can be viewed as a golden chance for the local tourism industry to recover after months of little activity due to the impact of the COVID-19 pandemic.

HCM City Mayor shows concerns as doctors turn from ‘heroes’ to ‘violators’

With great efforts in the fight against Covid-19, medical workers have been honored as heroes.

Stopping the licensing of new airlines, restricting the expansion of fleets

Controlling the number of new airlines until the market recovers and restricting licensing to expand fleets in the immediate time are solutions proposed by the State Capital Management Commission (SCMC).

Luxury-tax hike should be postponed until after 2024

Discussing the luxury tax law, experts said it is necessary to design a reasonable taxation roadmap and begin raising the tax only after 2024.

Huge haul in new markets for Vietnam’s tra fish exports

Demand for Vietnam’s tra fish (pangasius) is up in major markets, driving the export of the catfish overseas, reports the Vietnam Association of Seafood Exporters and Producers (VASEP).

Facebook collects money from partners to pay tax in Vietnam

The amount of money Facebook is planning to collect from Vietnamese partners accounts for 5 percent of invoice value. The money will be used to fulfill tax obligations.

Vinh Phuc: Wall collapse kills three people

Three people were killed and another seriously injured in the northern province of Vinh Phuc after a wall of a house collapsed and buried them.

JPMorgan Chase announces fresh capital injection into VN

JP Morgan Chase on Thursday announced a capital injection of US$123 million into its branch entity in HCM City, bringing the firm’s total capital investment into Viet Nam from $77 million to $200 million, or VND4.6 trillion.

Vietnam ready to facilitate long-term business and production of foreign firms

The nation continues to pay close attention to and attaches great importance to improving the investment environment and creating favourable conditions in which foreign enterprises can conduct long-term production business in the country.

Family of four found dead in Hanoi in apparent murder-suicide

Four members of the same family were found dead in an apartment complex in Hanoi's Hoang Mai District.
back_to_top