(January 14), according to the Vietnam News Agency:
Emerging Star-Vietnam continues to be the center of the changing supply chain and the most competitive manufacturing location in the Asia-Pacific region .
This is the determination made by the Economist Intelligence Unit (EIU) Analysis Department in its assessment report on Vietnam released on the 13th.
According to a reporter from Vietnam News Agency in Singapore, in the report titled “Emerging Stars: Vietnam’s Role in Asia’s Changing Supply Chains”, the EIU has evaluated various advantages in Vietnam’s business environment. The shortcomings are mainly concentrated in three major areas: labor market, investment encouragement policies and various trade relations in Vietnam.
In the labor market, EIU believes that Vietnamese workers’ wages will not quickly increase to a level that will harm Vietnam’s competitiveness. However, the lack of skilled labor is a limitation.
In the field of investment, high-tech manufacturers will continue to enjoy various preferential policies for many years to come.
In addition, Vietnam has participated in a number of trade agreements and maintained good relations with various trading partners, which helps reduce the trade exchange costs of various enterprises.
According to the EIU press release, the agency’s senior analyst John Marlett commented that in the context of the trade war between China and the United States, many attentions have turned to Vietnam as a measure to replace China, but there are The opinion is that Vietnam is rapidly moving towards the value chain and is quickly reaching its capacity limit in developing industrial industries targeting exports. However, he highlighted the ways in which Vietnam’s business environment will develop in the coming years.
John Marlett believes that the advantages of Vietnam’s business environment are taxation duties, foreign direct investment policies and measures to control foreign trade and foreign exchange rates. Because Vietnam’s domestic politics is relatively stable compared to almost all countries in Southeast Asia whose level of economic development is equivalent to Vietnam’s.
However, the disadvantage of Vietnam is that its infrastructure is fragmented and transportation connectivity between the north and the south is limited. However, with a range of preferential policies and various free trade agreements for foreign companies, as well as competitive wage costs, Vietnam remains an attractive option for investors looking to diversify their supply chains in Asia. </p
