Vietnam on way to become world’s production hub: Sputnik

Illustrative image (Source: VNA)

Hanoi – Vietnam is expected to become a new production hub of the world, as “Made in Vietnam” products are winning larger shares in the international market, according to Russia's Sputnik news agency.

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

Sputnik cited statistics from the General Department of Vietnam Customs showing that Vietnam earned a record amount of 57.54 billion USD from exporting telephones and accessories in 2021, a rise of 12.4 percent year on year, and a 25-fold increase from the 2.3 billion USD recorded in 2010.

According to Sputnik, the result was firstly attributable to the Republic of Korea’s Samsung Group, whose revenue accounted for nearly 20 percent of Vietnam’s GDP last year. As of the end of 2021, Samsung had invested 18 billion USD in Vietnam. Currently, more than 50 percent of Samsung’s cell phones are produced in Vietnam. Smart mobile devices manufactured in Vietnam are being exported to 128 countries and territories in the world.

According to Sputnik, experts predicted that Vietnam will become the largest production hub of Nike. The CNBC quoted the world leading sportwear producer's financial report as saying that in 2021, Vietnam produced 51 percent of its global production.

The situation is similar for Adidas, Nike’s rival, with 40 percent of its footwear being made in Vietnam.

Experts held that the number of orders for Vietnam is rising thanks to the strong workforce and low labour cost, along with smooth investment environment, stable political situation, good infrastructure, attractive incentives for investors, and the country’s success in pandemic control, Sputnik highlighted.