WAVE OF PRODUCTION SHIFT AWAY FROM CHINA AND OPPORTUNITIES FOR VIETNAM

HANOI, Vietnam, Oct 17 (Bernama-GLOBE NEWSWIRE) -- Apple in June this year was reported to be moving some iPad production out of China and shifting it to Vietnam, together with other tech giants such as Google, and Microsoft, making the country a hotter-than-ever destination in the wave of global shift away from Chinese production.

Vietnam has received increasing attention from global producers as many of them are searching for alternative supply chains in the face of China’s zero Covid policy. Samsung is one of the flagship tech giants pioneering the wave of moving production to Vietnam. Recently, Samsung has just completed the construction of a US$220 million research and development center in Hanoi, its largest in Southeast Asia. Last year Samsung reported $74.2 billion sales for its Vietnam branch, up 14 percent from 2020. They included exports of $65.5 billion, up 16%.

Disbursement of foreign direct investment (FDI) in the first nine months of 2022 hit $15.4 billion, up 16.2 % year-on-year and marking a record high, according to a report from the Foreign Investment Agency.

Besides technology, textile and garment also witnessed a strong shift away from China to Vietnam as the country continues to be an important link in the global supply chain.

WAVE OF PRODUCTION SHIFT AWAY FROM CHINA AND OPPORTUNITIES FOR VIETNAM