|Multinational companies in Việt Nam are seeking to increase their investment. Photo nld.com.vn|
HCM CITY — An increasing number of multinational corporations are planning to increase their investment in Việt Nam, providing opportunities for domestic companies to enter global value chains.
According to a 2021 strategy report by securities firm VNDirect, Việt Nam is rising as one of the alternatives to China in the eyes of foreign investors thanks to its favourable location and bringing COVID-19 under control, thus ensuring the economic activities continued through the pandemic.
Many multinationals are planning to invest more in Việt Nam, with Microsoft planning to launch a new model of its Surface laptop and HP and Dell planning to move 30 per cent of their computer manufacturing to Southeast Asian countries, with Việt Nam being the favoured location.
Their move to Việt Nam will also mean their suppliers will accompany them, building factories in the country and enhancing its value chain.
Samsung, which has invested more than US$17.3 billion in Việt Nam over the last 12 years and has built large factories across the country, is building a research and development centre in Hà Nội that will open by the end of 2022.
According to the company, it plans to co-operate more with domestic companies and partake in public infrastructure projects in future.
Foreign companies’ expansion in Việt Nam also provides more opportunities for Vietnamese companies to join global value chains, as evidenced by the number working with Samsung Việt Nam.
Panasonic too has been increasing the use of local components, and plans to work increasingly with local businesses to develop supporting industries.
Tim Evans, general director of HSBC Việt Nam, said FDI had played a big role in growing Việt Nam’s economy.
To improve its investment climate, the country needed to improve administrative procedures to reduce the time spent on them, he said.
According to other companies, Việt Nam also needs to focus on developing a skilled workforce, especially for managerial and engineering jobs, and affordable housing in big cities for workers to accommodate their imminent migration. — VNS