Several of the world's largest technology innovation corporations are making plans to shift their production chains including innovation centers to Vietnam post-COVID-19, according to the Ministry of Industry and Trade.
LG Electronics recently moved its entire smartphone production line from South Korea to the northern city of Hai Phong, the ministry said, the South Korean company had set up a $1.5 billion plant in Trang Due in 2015. South Korea was the leading investor in Vietnam last year with $7.92 billion. Added that, Japan’s Panasonic is also reportedly making solid plans to move a production line that makes white goods to Vietnam in early September to improve cost efficiency. Whereas, through its key contractor Foxconn, U.S. tech giant Apple expanded production of its wireless earphones in Vietnam to four million in the second quarter, made up of 30 percent of all AirPods production.
Experts say Vietnam has become a lucrative destination for multinationals thanks to its early and effective efforts to contain the novel coronavirus. The country of 96 million people has reported 372 infection cases and no deaths so far.
Vietnam is among the "brightest" spots in Asia despite the challenge of trying to contain the pandemic, and its economy is poised to rebound, a UBS economist recently said.
"Retail sales, imports and industrial production were all actually up on the year in June, which is better than you can say for most economies in the region," Edward Teather, ASEAN economist at UBS Research told CNBC’s "Squawk Box Asia".
"Vietnam is growing and is well-positioned to continue to take global market share in terms of exports going forward, so pretty bright prospects in a relative sense in the region," Teather said. The country’s free trade deal with the European Union, which was ratified last month, could boost inflows of foreign direct investment and technology innovation, he added. Thus, quickly moving towards a digital society for the lands of descending dragons.
Source: VnExpress
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