Vietnam maintains position as global manufacturing hub: Taiwanese media | shop
Hong Kong (VNA) – A recent article published on digitimes.com.tw, a media company from Taiwan (China), states that despite a challenging year in 2021, the Vietnamese economy has not been hampered by supply chain disruptions but maintains its positive outlook and reputation as a global company production center in 2022.
According to the letter, Vietnam is an attractive investment destination thanks to low production costs, which is also supported by the Regional Comprehensive Economic Partnership (RCEP). Along with the country’s rapid economic growth and standing in world trade is Vietnam’s supply chains are continuously evolving and becoming a preferred choice for production in the region.
The size of Vietnam’s economy ranks 40th in the world and fourth in the Association of Southeast Asian Nations (ASEAN). In the IT industry, the country has overtaken many superpowers to become one of the world’s leading mobile phone manufacturers and exporters. It ranks 9th in terms of software export and outsourcing and 6th in terms of computer games worldwide.
More and more companies want to invest in ASEAN or other regions. Among the countries with competitive advantages for investment, Vietnam has emerged as an efficient choice in Southeast Asia, the article said.
About US$31.15 billion in foreign direct investment (FDI) flowed into Vietnam last year, a 9.2 percent increase from 2020. Although this figure is lower than the more than US$38 billion in 2019, it may be higher given the complex COVID nevertheless be regarded as a positive result -19 pandemic showing the confidence of foreign investors.
The letter quoted experts as predicting that the RCEP will boost investment by the top three foreign investors in Vietnam, namely the Republic of Korea, Japan and Singapore.
An analysis by the Peterson Institute for International Economics found that Indonesia, Malaysia, Thailand and Vietnam will benefit the most from the RCEP. Meanwhile, the FocusEconomics website claimed that Vietnam is the biggest beneficiary of this deal, possibly thanks to its export sector with competitive advantages that is becoming more integrated into regional value chains.
The article said Vietnam has used free trade agreements (FTAs) as a tool to ensure its economic strength and financial security, and that the signed FTAs would help the country increase both the quantity and quality of trade even if the pandemic broke out promote and invest, diversify partners and participate in global value chains./.