South Korean media: Under the impetus of Samsung and Apple, Vietnam has become a key link in the global supply chain!

On December 5th, South Korean media "Asia Economic" published an article stating that Vietnam is rising as a key stage in the global supply chain restructuring. With multinational companies such as Samsung and Apple relocating their production bases to Vietnam, Vietnam is increasingly attracting attention as a new "golden destination" for high-tech and manufacturing. With the dual growth of foreign direct investment (FDI) and exports, Vietnam is expected to become the fastest-growing economic center in Asia by 2025.

Data from the General Statistics Office of Vietnam shows that by October this year, the registered foreign direct investment capital in Vietnam reached 28.54 billion USD, an increase of nearly 15% year-on-year. The actual到位 foreign direct investment reached 21.3 billion USD, an increase of 8.8%, with manufacturing accounting for more than half of it.

At the same time, the export value of electronic products, computers and components exceeded 77 billion USD, becoming the pillar industry of Vietnam's exports, while the import value reached 110 billion USD. The simultaneous growth of imports and exports is directly attributed to the expansion of production scale by global electronics giants such as Samsung, LG, Foxconn and Intel in Vietnam.

So far, Samsung has invested over 20 billion USD in Vietnam. The SEV and SEVT factories located in Bac Ninh and Thai Nguyen provinces account for half of Samsung's smartphone production, making them the largest production base of the group worldwide. Samsung Display Vietnam Company and Samsung Electro-Mechanics Vietnam Company are also steadily expanding their production scale. In addition, a 220 million USD R&D center located in Hanoi has become a center for artificial intelligence and 5G research, enabling Vietnam to transition from a manufacturing hub to an innovation hub.

Apple has expanded its production partners in Vietnam to 35 companies, making it the largest production center in Southeast Asia. It is expected that Vietnam will account for 65% of global AirPods production, 20% of Apple Watch production, and 5% of MacBook production this year. This production expansion is crucial for consolidating Vietnam's strategic position in the global electronics and IT product value chain.

French electrical equipment manufacturer Legrand has also shifted part of its production to Vietnam to avoid U.S. tariffs. Legrand CEO Benoît Cauquil said: "Our second factory in Vietnam started operations two months ago. This allows us to reduce supply chain risks at a reasonable investment cost."

In the fashion and footwear industries, global brands such as Nike, Adidas, Uniqlo and Decathlon are also expanding their production bases in Vietnam. According to the Vietnam Leather, Footwear and Bag Association, Vietnam currently produces more than half of Nike and Adidas shoes worldwide, making it the second-largest shoe exporter in the world after China. Vietnam's industrial expansion has created millions of jobs in the country's labor market and diversified its industrial structure.

Việt Nam's competitiveness is not only reflected in cost savings. Its strategic location at the center of major Asian shipping routes, a young and skilled workforce, and an open policy environment fostered by numerous free trade agreements (FTAs) are comprehensive manifestations of its competitiveness. These extensive free trade agreements, including CPTPP, EVFTA and RCEP, provide preferential tariff treatment for Vietnamese companies in over 50 markets.

A recent report from global consulting firm McKinsey states, "Vietnam is the best-performing economy in Southeast Asia. If political stability and policy reforms continue, Vietnam will surpass the role of a mere production base and become a key participant in the new global supply chain."

Certainly, Vietnam still faces structural issues such as improving logistics infrastructure, streamlining administrative procedures, and cultivating high-tech talents to maximize these opportunities. Therefore, the Vietnamese government is expected to accelerate policies on green growth, support the semiconductor industry, and digital transformation, shifting from "attracting investment" to "investment cooperation."

Original article: toutiao.com/article/1850659445725507/

Statement: The article represents the views of the author.