Vietnam on way to become new global manufacturing hub

Illustrative image (Photo: VNA)

At a recent Investment Promotion Conference in Vinh Phuc province, K.C Chen, Deputy CEO of Compal Vietnam Co., Ltd (Taiwan) outlined the operation of its 500 million USD laptop factory in Vinh Phuc.

According to him, the company is currently a manufacturer for Dell, Google and Amazon. The factory's production activities are stable and it expects to attract 15,000 workers by the end of the second quarter.

In addition to this project, Compal - through its subsidiary, has also invested in the Arcadyan Technology project with a capital of 50 million USD in Vinh Phuc, which specialises in manufacturing electronic components. Compal is working hard to implement its plan set out three years ago, which is to expand the production scale to increase its export turnover to 1.5-2 billion USD per year.

With Compal’s supplies for Dell, Google and Amazon for export, it can be seen that Vietnam is really becoming a manufacturing centre of the world, at least in the field of electronics. Along with big manufacturers that have their own factories such as Samsung, Intel and LG, there are more and more manufacturers specialising in outsourcing for world-famous electronic brands in Vietnam.

Foxconn, Luxshare, Winston, Pegatron and Goertek are typical examples. The presence of the big names has made Vietnam a base for the production of electronics and mobile phone components, with the export turnover of phones and components, electronics, computers and components exceeding 27.3 billion USD in the first quarter of this year. Last year, the export of phones and components alone fetched 57.54 billion USD.

Recently, Russia's Sputnik news agency posted an article saying that Vietnam is to become a new global production hub, as “Made in Vietnam” products are winning larger shares in the international market.

The news agency noted that last year, Vietnam enjoyed good results in foreign direct investment (FDI) attraction, and drew hundreds of millions of USD at the beginning of 2022, which demonstrated strong confidence from investors, including Foxconn, Pegatron, Wistron, LEGO and Nike, in the country's economic prospects.

Opportunity to benefit from fluctuations in foreign capital flows

Many of Taiwanese businesses hope to take root in Vietnam, said Jian Zhiming, General Director of the Council of Taiwanese Chambers of Commerce in Vietnam, adding that Vietnam is an important link in the supply chain shifting trends in Southeast Asia. That is also the reason why Jian said he believes that more and more Taiwanese businesses will invest in Vietnam.

Taiwan's investment in Vietnam has been increasing strongly in the recent past and will continue to increase in the processing, manufacturing and electronics industries, he added.

The Foreign Investment Agency also has an optimistic view on the trend of foreign investment flows into Vietnam.

The investment wave of foreign enterprises is forecasted to rise in the coming time, mainly from Japan, the Republic of Korea, Taiwan and the EU, it said.