Vietnam’s Foreign Investment Agency has said that the country’s electronics sector has attracted foreign direct investment to the tune of US$10 bn thus far in 2015. The list of investors features global leaders in the electronics sector, such as Panasonic, LG, Foxconn, Samsung, and Intel. The Foreign Investment Agency in Vietnam functions under the aegis of the Ministry of Planning and Investment.
That leading companies are increasingly looking at Vietnam as a lucrative manufacturing base can be gauged from the recent investments made in the Asian country by market leaders. Samsung, for instance, has set up a US$2.5 bn factory in Bac Ninh, which is located about 30 kilometers from Hanoi, Vietnam’s capital. The company has set up another US$2-bn manufacturing unit in Thai Nguyen. While the former facility primarily manufactures feature phones, the latter produces smart TVs, laptops, smartphones, and medical equipment. Samsung also has a US$1 bn plant in Ho Chi Minh City that focuses primarily on the production of LED TVs.
According to Vietnam’s Foreign Investment Agency, the cascading effect of these enormous investments on Vietnam’s economy is massive, as several jobs are created on the sidelines. For instance, when Samsung announced that it had chosen Thai Nguyen for its manufacturing facility, a number of satellite units came up around the area as enterprises wanted to provide auxiliary support to the new set up.
Fuelled by an accelerating rate of FDI, Vietnam’s economy has fared better than many other ASEAN economies in the last couple of years. The Foreign Investment Agency, too, says that Vietnam’s export revenue grew faster than other ASEAN nations. Globally, this has augured well for Vietnam’s standing as the country has risen to rank 12th among the top electronics exporters in the world.
Vietnam’s successful run in the global electronics industry is expected to continue as the country’s government introduces new tax benefits and other attractive policy packages to attract more FDI. It will now be interesting to see how other larger countries in ASEAN react to Vietnam’s strengthening trade position.
That leading companies are increasingly looking at Vietnam as a lucrative manufacturing base can be gauged from the recent investments made in the Asian country by market leaders. Samsung, for instance, has set up a US$2.5 bn factory in Bac Ninh, which is located about 30 kilometers from Hanoi, Vietnam’s capital. The company has set up another US$2-bn manufacturing unit in Thai Nguyen. While the former facility primarily manufactures feature phones, the latter produces smart TVs, laptops, smartphones, and medical equipment. Samsung also has a US$1 bn plant in Ho Chi Minh City that focuses primarily on the production of LED TVs.
According to Vietnam’s Foreign Investment Agency, the cascading effect of these enormous investments on Vietnam’s economy is massive, as several jobs are created on the sidelines. For instance, when Samsung announced that it had chosen Thai Nguyen for its manufacturing facility, a number of satellite units came up around the area as enterprises wanted to provide auxiliary support to the new set up.
Fuelled by an accelerating rate of FDI, Vietnam’s economy has fared better than many other ASEAN economies in the last couple of years. The Foreign Investment Agency, too, says that Vietnam’s export revenue grew faster than other ASEAN nations. Globally, this has augured well for Vietnam’s standing as the country has risen to rank 12th among the top electronics exporters in the world.
Vietnam’s successful run in the global electronics industry is expected to continue as the country’s government introduces new tax benefits and other attractive policy packages to attract more FDI. It will now be interesting to see how other larger countries in ASEAN react to Vietnam’s strengthening trade position.
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