UK newspaper spotlights Vietnam’s emergence in global supply chain

Multinationals are looking to set up their bases in Vietnam despite various challenges that the country poses as a manufacturing destination, according to the Financial Times in the UK.

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The newspaper cited Michael Kokalari, chief economist of VinaCapital in Ho Chi Minh City, as saying that more and more foreign companies are moving their production activities to Vietnam, and one prominent example is Apple, which began mass production of some of its AirPods wireless earbuds in Vietnam in the second quarter of this year when most of the world was in lockdown to contain the spread of COVID-19.

According to Financial Times, Vietnam’s labour markets are not as deep as China’s. Industrial park space is in brisk demand, especially around HCM City, where the bulk of Vietnam’s clothing, furniture and other exporters are based.

The newspaper, however, noted businesspeople say the Vietnamese market is adjusting to all these difficulties, even amid the pandemic. Many projects to construct industrial parks are on their way. For example, GLP, Asia’s biggest warehouse operator, is developing projects in Hanoi and HCM City, and plans to invest 1.5 billion USD over three years as it promotes its business in Vietnam./.

VNA