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Viêt Nam welcomes FDI in production of medical equipment: trade official

Update: April, 22/2021 - 17:08

Ttrade counsellor Nguyễn Mạnh Hùng at the Vietnamese Embassy in Germany.— VNA/VNS Photo

HÀ NỘI — Việt Nam has rolled out the red carpet for foreign investors, including those from ASEAN states, to invest in advanced medical equipment, according to trade counsellor Nguyễn Mạnh Hùng at the Vietnamese Embassy in Germany.

At a virtual conference held by Ernst & Young (EY) Global Limited on Tuesday, Hùng said ASEAN has produced a wide range of medical equipment, and 5-7 per cent of global equipment exports are sourced from ASEAN countries.

Việt Nam has a huge demand for medical equipment due to its rapidly ageing population, he stressed, adding that a network between ASEAN member states should be established to enhance information exchange as well as co-operation in the field to ensure timely supply of medical equipment and pharmaceutical products.

At the event, which also aimed to promote trade and investment in consumer goods within the bloc, he highlighted the important role of the country's garment and footwear sector in both the domestic and export markets.

Despite the adverse impacts of COVID-19, Việt Nam's exports of consumer products topped US$100.3 billion in 2020, a year-on-year rise of 2.4 per cent. Shipments of garment and footwear products accounted for 20 per cent of the nation’s total export revenue in 2019.

Currently, Việt Nam is the fourth-largest garment and textile exporter, and the second-biggest source market of footwear. However, 80 per cent of the leather shoes come from the foreign direct investment sector, he said.

As the COVID-19 pandemic has affected the supply of materials for the two production sectors, while global demand has declined sharply, the country is working to diversify its material supplies to reduce risks.

In a bid to enjoy tax preferences from free trade deals such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Europe-Việt Nam Free Trade Agreement (EVFTA), brands and suppliers in Việt Nam are using domestic materials.

According to Hùng, with robust economic growth, ASEAN is both a large supplier of consumer products and a big market.

Due to their increasing income, ASEAN consumers prefer high-quality products, including garments and leather shoes, so Việt Nam hopes to branch out the two sectors by developing transport and logistics infrastructure, he added. — VNS

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