Over the past few years, Vietnam has gained a foothold in the global ** chain with its low-cost labor force and excellent geographical location, becoming the preferred destination for many labor-intensive industries.
However, the trend of the past year shows that Vietnam's attractiveness has gone far beyond the traditional manufacturing sector, and the high-tech ** chain is also rapidly migrating to Vietnam.
According to our statistics,Since the beginning of 2023, a large number of high-tech companies have announced their investment plans in Vietnam. These companies cover many high-tech fields such as electronic information, battery manufacturing, auto parts, and semiconductors
For example, companies such as Longyang Electronics, AUO Optronics, and Highpower Technology are planning to set up wholly-owned subsidiaries in Vietnam, with investments ranging from tens of millions of dollars to hundreds of millions of dollars. Nvidia plans to establish a semiconductor base in Vietnam, which is undoubtedly a huge boost to the development of Vietnam's high-tech industry.
On January 16, Longyang Electronics announced that in order to better meet the needs of the company's business development, it plans to invest 10 million US dollars to set up a wholly-owned subsidiary in Vietnam on the basis of full investigation and evaluation of overseas low-cost and relatively sound areas of the electronic information industry chain.
On February 8, AUO announced that it would invest about RMB 2300 million yuan to set up a wholly-owned subsidiary in Vietnam to strengthen customer cooperation and respond to the strategic layout of important customers.
On March 28, Highpower Technology said that it would invest in the establishment of a wholly-owned subsidiary in Vietnam to build a battery manufacturing base.
On March 31, Kesen Technology said that due to the needs of business development, it plans to invest 43 million US dollars to set up a new production base in Vietnam to meet the order needs of overseas customers.
On April 20, Xianying Technology said at the performance briefing that the company plans to build a production base in Vietnam to further optimize the production capacity layout, consolidate the production and manufacturing advantages, and meet the capacity demand brought by the continuous growth of overseas business orders.
On May 23, Wang Chuanfu, chairman of BYD, arrived in Vietnam, and it is rumored that he will invest 1.7 billion yuan to build an auto parts factory in Vietnam.
On August 10, Pengding Holdings announced that in order to improve the company's global layout strategy, the company plans to build a production base in Thailand, and the investment amount of the Thai production base is about 2$500 million.
On September 7, according to the Ministry of Industry and Commerce of Vietnam, Intel Group's chip test plant in Vietnam will be expanded in the second phase, with a total investment of 4 billion US dollars.
On September 10, Chuangxin Electric announced that the company plans to invest 20 million US dollars in Vietnam to build a production project with an annual output of 800,000 hand-held power tools and spare parts.
On September 11, Market-Guide Security announced that the company decided to invest 48 million US dollars in the construction of a project with an annual output of 16 million dozen functional safety protective gloves in Vietnam.
On September 12, Hongrida announced that the company plans to invest 34 million US dollars in the construction of solar photovoltaic modules, junction boxes and consumer electronics connector production base projects in Vietnam.
On September 12, Fangu Electronics announced that the company plans to invest 7 million US dollars to set up a Vietnamese subsidiary, Vietnam Peiming Electronic Technology
On December 10, Nvidia said it plans to build a semiconductor base in Vietnam.
This trend is not accidental. In fact, it is the inevitable result of the restructuring of the global ** chain. Under the dual impact of the war and the epidemic, many enterprises have begun to seek diversification of the chain to reduce their dependence on specific regions or countries.
Vietnam, with its stable political environment, low labor costs, abundant natural resources, and constantly improving laws and regulations, has become a popular choice in the reconstruction of the global ** chain. For global businesses, Vietnam has the following attractions:
1.Diversified ** chain layout
By setting up a production base in Vietnam, global enterprises can diversify the layout of the ** chain, reduce risk and increase flexibility. As a member of the ASEAN region, Vietnam has an advantageous geographical location to facilitate its business with other Asian countries and global markets**.
2.Cost-effective
Compared to developed countries and other emerging markets, Vietnam's lower labor and production costs have led companies to establish production bases in the region. This can not only reduce the operating costs of enterprises, but also better cope with the uncertainty of the international situation.
3.Benefit from global** agreements
Vietnam's active participation in global agreements such as the Regional Comprehensive Economic Partnership (RCEP) in Asia further strengthens Vietnam's position as a center for the reconstruction of the global ** chain. Through these agreements, Vietnamese companies can more easily engage with other countries and expand their market share.
According to statistics from the Foreign Investment Department of the Ministry of Planning and Investment, Vietnam's foreign direct investment from January to November this year is expected to be 288500 million US dollars, a year-on-year increase of 148%。This data clearly shows that Vietnam is becoming a hot spot for global capital. Among them, investment in high-tech industries accounts for a large proportion.
However, the migration of high-tech ** chains has also made Vietnam face many challenges and difficulties.
1. **Chain risk management
The ** chain of the high-tech industry is usually more complex and elaborate, involving multiple links in multiple countries and regions. This increases the difficulty of chain risk management. For example, natural disasters, political turmoil, restrictions, and other factors can have a serious impact on the chain. Vietnam needs to establish a more complete risk management system for the first chain, including risk assessment, early warning mechanism, emergency response, etc., to ensure the stability and continuity of the first chain.
2. Lack of technical level and innovation ability
Although Vietnam has made some achievements in attracting high-tech industries, its technological level and innovation capabilities are still relatively weak. This limits Vietnam's role and status in the high-tech chain, and also makes it difficult for some high-end industries to take root in Vietnam. Vietnam needs to increase investment in scientific and technological R&D and innovation activities, and improve its technological level and innovation capabilities to better integrate into the global high-tech chain.
3. Lack of talent training and labor market
The demand for talents in the high-tech industry is more professional and high-end. Vietnam needs to establish a sound talent training system, including higher education, vocational education, skills training, etc., to meet the talent demand of high-tech industries. In addition, Vietnam also needs to pay attention to the changes and trends in the labor market, adjust labor policies in a timely manner, and attract more high-quality talents to join the high-tech industry.
Overall, despite the many challenges, Vietnam is becoming an important node in the high-tech ** chain and exerting more and more influence.
Its unique geographical location, abundant natural resources, stable political environment and low labor costs have made Vietnam occupy a favorable position in the reconstruction of the global ** chain.
As more and more high-tech enterprises choose to set up production bases in Vietnam, we can foresee that Vietnam will be in the global high-tech industry chain in the future.
plays a more important role.
This trend has also brought us a profound enlightenment: in today's globalization, no country can develop independently of the global ** chain.
Only by actively participating in the reconstruction of the global ** chain and making full use of its own advantages can it occupy a favorable position in the fierce international competition. And for enterprises, a diversified, flexible and sustainable **chain strategy will be the key to future success.