Vietnam has room to develop high-value manufacturing: Cushman & Wakefield
Vietnam's high-value manufacturing is expected to grow (Photo: VNA)
HCM City (VNA) – Vietnam’s high-value manufacturing is expected to grow, with the government intent on increasing manufacturing’s share of the economy from 25% to 30% by 2030 by attracting more high-value manufacturing investment, said the “Strength through Diversification: Opportunities across Asia Pacific” report by Cushman & Wakefield.The global commercial real estate services firm affirmed that Vietnam has the room to accommodate such growth with a strong concentration of electronics production in the northern region (Hanoi, Hai Phong), while the southern region (Ho Chi Minh City, Binh Duong, Dong Nai) has a mix of food, consumer goods and electronics manufacturing.
According to the report, Vietnam is a key beneficiary of China plus manufacturing strategies due to close geographical proximity and wider regional/global connectivity.
Aside from its strategic location, Vietnam remains cost-effective with significantly lower labour costs compared to China. Further benefits come from a balanced mix of high value manufacturing such as electronics and low value manufacturing such as garments, footwear and food.
In its report, Cushman & Wakefield said that the ASEAN bloc is fast establishing itself as a major growth focus within the Asia-Pacific, attracting healthy levels of foreign direct investment which are expected to reach at record peak in 2022 of 223 billion USD.
Much of this growth has come as US- and European-based corporations continue to expand and persify their operations within the region, though Chinese manufacturers also continue to expand their presence. The northern region of Vietnam, such as Hai Phong and Hanoi, has attracted strong investment from China’s and the Republic of Korea’s manufacturers given its close proximity as well as its strong geographical connectivity regionally and globally, it added./.
Related News
Latest News
Many factors affecting tuna exports in the last months of the year
19:38 | 02/11/2024 Import-Export
Vietnam still dominates Philippine rice import
19:36 | 02/11/2024 Import-Export
Vietnam cements ties with partners to engage in global semiconductor, AI industries
19:35 | 02/11/2024 Import-Export
Aquatic exports expected to rise in year-end despite challenges
19:33 | 02/11/2024 Import-Export
More News
Trade Defense: The Key to Success for Vietnamese Businesses
10:39 | 02/11/2024 Import-Export
Lao Cai Customs sees a triple-digit surge in export-import turnover
10:37 | 02/11/2024 Import-Export
Coconut is expected to become a billion-dollar export item
16:40 | 01/11/2024 Import-Export
Plastic exporters interested in converting to recycling technology
16:36 | 01/11/2024 Import-Export
Logistics sector must embrace innovative trends to stay competitive
16:34 | 01/11/2024 Import-Export
Vietnam’s agro-forestry-aquatic product exports likely to set new record
16:32 | 01/11/2024 Import-Export
UKVFTA greatly benefits Vietnam-UK trade: Experts
14:19 | 31/10/2024 Import-Export
Agricultural exports likely to exceed 60 billion USD amid challenges
14:18 | 31/10/2024 Import-Export
Vietnam-Philippines trade likely to exceed 8 billion USD for first time
14:17 | 31/10/2024 Import-Export
Your care
Many factors affecting tuna exports in the last months of the year
19:38 | 02/11/2024 Import-Export
Vietnam still dominates Philippine rice import
19:36 | 02/11/2024 Import-Export
Vietnam cements ties with partners to engage in global semiconductor, AI industries
19:35 | 02/11/2024 Import-Export
Aquatic exports expected to rise in year-end despite challenges
19:33 | 02/11/2024 Import-Export
Trade Defense: The Key to Success for Vietnamese Businesses
10:39 | 02/11/2024 Import-Export