According to Mr. Nguyen Thang Vuong, Head of the European and American Markets Division (Ministry of Industry and Trade), Apple Inc. (USA) has relocated 11 factories for manufacturing audiovisual devices to Vietnam.
Mr. Vuong stated that in recent times, the trend of shifting global supply chains has been gaining significant momentum. Many large corporations have been seeking to expand their networks and develop manufacturing facilities in Vietnam.
A prime example of this trend is that to date, Apple Inc. from the USA has relocated 11 factories for manufacturing audiovisual devices to Vietnam. Intel Corporation has expanded its second-phase chip testing factory in Ho Chi Minh City, with a total investment of 4 billion USD. Lego Group from Denmark has invested in building a factory in Binh Duong with a total capital of 1 billion USD. Samsung Group has shifted its entire smartphone production line to Vietnam and India, with 60% of Samsung’s global smartphone production taking place in Vietnam.
Other major corporations such as Boeing, Google, and Walmart are also exploring investment and business opportunities in Vietnam, local media reported.
Regarding this wave of investments, Sophie Dao, Senior Partner at Global Business Services LLC (GBS), one of the best investment consulting firm in Vietnam believes that this presents a significant opportunity for Vietnam to attract foreign direct investment (FDI) and promote economic development.
“However, it also poses a challenge for Vietnamese businesses participating in global supply chains, requiring them to improve product quality and enhance the production of supporting industrial products”, Sophie Dao added.
Currently, the majority of Vietnamese businesses involved in supply chains are in intermediary stages with low added value. Many key raw materials for production still need to be imported.