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'Vietnam is rising in the global supply chain'
05/05/2021
The article published on counterpointresearch.com emphasizes that, in an era of protectionism where many economies are reeling from the COVID-19 pandemic, Vietnam is still rising to become one of the attractive destinations for foreign investors. export manufacturer. From 2020-2026, Vietnam's electronic manufacturing services (EMS) market will grow at a compound annual rate of 5%. With the manufacturing sector growing exponentially along with growing domestic and export demand, mainly in the electronics and automotive sectors, the EMS business is expected to expand to new heights. Many global original equipment manufacturers (OEMs) and EMS suppliers such as Samsung, LG, and Foxconn (a contract manufacturer for Apple) are investing in the production of printed circuit boards, camera modules, and cameras. printers, servers, telephones, network equipment, televisions and other electronic devices in the country.
In 2020, with nearly 70% of the phone market share in Vietnam, Samsung is one of the largest foreign direct investment companies in Vietnam. Vietnam has one of Samsung's largest smartphone production bases outside of South Korea. By 2022, Samsung is expected to complete a $220 million research and development center in Vietnam. The article argues that the positive factors that make Vietnam a favorable destination for manufacturers include constantly improving investment and business policies, participating in bilateral free trade agreements and multilateralism, increased FDI and favorable geographical location. By 2027, Pegatron will invest nearly 1 billion USD in the Vietnamese factory in 3 phases, targeting the computer, communication and consumer electronics industries. Foxconn is also moving some iPad and MacBook assembly lines to Vietnam. Google is also shifting production of its Pixel smartphone brand for the US market to Vietnam.
In addition, according to the article, Vietnam is known for its comprehensive strategies, lasting from 5-10 years such as "Manufacturing in Vietnam 2025: Industrial Policy and Strategy 2025" and Vision 2035. . On the same day, The Diplomat had an article saying that, after the successful story of fighting the COVID-19 epidemic, Vietnam is well positioned to play a more dynamic role in the international arena and that global governance is "key". for this goal. With Vietnam emerging as an emerging middle power and increasingly vocal in international affairs, Vietnam has the potential to participate in rebuilding a global governance system that has been crippled by tensions between the two countries. growing superpowers and the outbreak of the COVID-19 pandemic.
Thanks to its impressive response to the pandemic, Vietnam ranks second out of 98 countries in the effectiveness of measures against COVID-19. More importantly, Vietnam also has a relatively high growth rate compared to neighboring countries and is forecasted to recover quickly after the pandemic. To this extent, Vietnam has become a model of governance. These achievements create a solid foundation for Vietnam to contribute more to the post-pandemic world management. If Vietnam can seize this opportunity, it can both enhance its international position and play a more active role in world affairs.
Vietnam can benefit economically from more effective participation in global governance. The fact that Vietnam owns more and more free trade agreements (FTAs) in recent years is a testament to the desire to integrate more deeply into the global economy. To fully benefit from these FTAs, it is important for Vietnam to be more proactive in governance matters, both domestically and globally.

References as hhtp.gov.vn

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