Hanoi (VNA) – Sputnik has reported that as part of shifting production chains, avoiding dependence on one country, North Vietnam can become the “effective arm” of the global factory and component production center global electronics.
Why do the world’s leading technology companies such as Apple, Samsung, Intel, LG… want to land in Vietnam and do a lot of favors for this country?
Sputnik quoted Cushman & Wakefield, one of the world’s largest real estate companies, as saying Vietnam is “privileged” and emerging as one of the new centers of production, processing and manufacturing.
According to Cushman & Wakefield, its proximity to major global economies, combined with well-connected infrastructure, makes Vietnam a priority destination for global technology companies. The North of Vietnam is a place that already attracts many large international companies, particularly in the electronics industry, thanks to a network of quality infrastructures.
The first factor is the road network. According to data from Cushman & Wakefield, the North currently has 13 highways connecting the northern provinces to the capital Hanoi, with a total length of 895.8 km.
“The road network that covers the entire territory serves as the main connection for the transport network between industrial regions, airports, seaports, border crossings and major transport hubs”, assessed Cushman & Wakefield.
In addition, in the road network planning 2021-2030, it is expected that the North will have 14 highways with a total length of about 2,300 km, with 4 to 6 lanes. When it comes to Vietnam’s railway system, the North has 6 main lines.
As for flight connections, in Northern Vietnam, there are 7 passenger airports – Noi Bai, Van Don, Cat Bi, Tho Xuan, Vinh, Dien Bien and Dong Hoi. Noi Bai International Airport houses a cargo terminal with a capacity of 403,000 tons per year, according to data from the Ministry of Transport.
Regarding the port system, Cushman & Wakefield said the North is the region with the largest increase, of 154%, from 2017 to 2021, in terms of transport exports compared to the rest.
Another remarkable advantage, according to Sputnik, is that the North has a favorable geographical location. Being located near China, “the workshop of the world”, makes Vietnam more attractive to major electronics multinationals as well as foreign investors when considering relocating their factories.
“With favorable geographical characteristics, as well as heavily invested infrastructure and a series of policies to promote government investment, it can be said that North Vietnam has all the necessary factors to attract a series of large investors and contribute more to the Vietnam’s GDP,” said the managing director of Cushman & Wakefield Vietnam.
According to the Ministry of Planning and Investment, in the first nine months of 2022, Vietnam attracted nearly $18.8 billion in FDI. Bac Ninh ranks third with $1.78 billion, accounting for 9.5% of the total. Thai Nguyen, Hai Phong, Hanoi and Bac Giang are the provinces that have attracted the most FDI in recent years.
“The fact that the biggest technology companies are simultaneously landing in the region has pushed many national companies to produce ancillary products,” commented Cushman & Wakefield. This shows that Vietnam remains in the Asia-Pacific region one of the most promising markets for investment. – CPV/NAV