Vietnam is expected to become a new production hub of the world

, Vietnam is expected to become a new production hub of the world

Vietnam on way to become world’s production hub as “Made in Vietnam” products are winning larger shares in the international market, according to Russia’s Sputnik news agency.

The news agency noted that last year, Vietnam enjoyed good results in foreign direct investment attraction, and drew hundreds of millions of USD right in the beginning of 2022.

This showed the strong confidence of investors, including many giant firms such as Foxconn, LEGO and Nike, in the country’s economic prospects.

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Sputnik cited statistics from the General Department of Vietnam Customs showing that Vietnam earned a record amount of more than 57 billion USD from exporting telephones and accessories in 2021, a rise of more than 12 percent year on year, and a 25-fold increase from the 2.3 billion USD recorded in 2010.

Experts held that the number of orders for Vietnam is rising thanks to the strong workforce and low labour cost, along with smooth investment environment, stable political situation, good infrastructure, attractive incentives for investors, and the country’s success in pandemic control, Sputnik highlighted.

Following the recovery from the end of 2021 after the impact of the COVID-19 pandemic, many foreign-invested enterprises have set-up new business, stabilized and expanded their production and business activities in Vietnam.

According to Sophie Dao, Senior Partner at Global Business Services (GBS) LLC, the result manifested the attractiveness of the Vietnamese market and foreign investors’ confidence in Vietnam’s capacity in controlling the pandemic and its economic recovery as well as the effectiveness of measures taken by the Government to accompany and support businesses.

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Despite the impact of COVID- 19 pandemic, many foreign investors have remained optimistic about the business and investment environment in Vietnam, and affirmed that Vietnam will still be a top choice for their new and expanded projects, Sophie added.

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FDI growth in Vietnam

FDI growth in Vietnam

Vietnam is a long streched country along the eastern coast of the Indochinese Peninsula. It borders China in north, Laos and Cambodia in west. The nation is bordering the South China Sea in east, and the Gulf of Tonkin with the island of Hainan Dao (China) in north-east. The country shares maritime borders with Indonesia, Malaysia, Philippines, and Thailand.

With an area of 331,689 km² Vietnam is about three times the size of Bulgaria or slightly larger than the U.S. state of New Mexico. Vietnam has a population of 92.6 million people (in 2016), it is the 13th most populous country in the world.

Spoken language is Vietnamese, English is increasingly favored as a second language, and there are still people speak some French.

Capital city of Vietnam is Hanoi (Ha Noi), former capital of the Republic of Vietnam and largest city is Ho Chi Minh City (also known as Saigon).

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