Numerous foreign firms eye stronger investment in Vietnam |

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Numerous foreign firms eye stronger investment in Vietnam hinh anh 1Vietnamese products are increasingly gaining popularity among consumers worldwide.- Illustrative image (Photo: sggp.org.vn)

Hanoi (VNA) – Nearly 1,000 foreign enterprises
from 28 countries and territories, including giants such as Boeing, Walmart,
and Central Retail, have entered Vietnam to explore investment opportunities and
seek partners since early September.


Unlimited demand for goods



According to Avaneesh Gupta, Senior Vice President of General Merchandise & Apparel Sourcing at Walmart – the world’s number one retailer, Vietnam is among the
top five countries for exports of wood and agricultural products, and ranks 10th globally for textiles and footwear exports.

Notably, Vietnamese products are increasingly gaining popularity among
consumers worldwide, Gupta said.

As part of the 2024 supplemental sourcing strategy for the Walmart network, the
firm has deployed procurement teams to Vietnam to explore sourcing
opportunities in the country, with the
product categories including seafood, cashew nuts, soy milk, coffee, fresh fruits,
and fruit-based snacks, he said.

Lionel Adenot, Director of Decathlon Vietnam Group, has mentioned that his company
is expanding its textile product supply with unlimited volume.

However, to become suppliers of the firm, Vietnamese businesses need to meet specific
conditions, including ensuring that factories do not use coal and have a roadmap
to eliminate the use of fossil fuels by 2025, achieving self-sufficiency in raw
material supply, favouring environmentally friendly, on-site material usage, and
implementing digital transformation in their production processes, he said.

Decathlon Vietnam Group will prioritise businesses
that meet criteria related to responsibilities towards workers and the
community, he added.

Agriculture also represents an enticing industry for
foreign investors.

Central Retail Group has offered technical assistance and
methodologies for cultivating organic honeydew melons to Danny Green Corporation,
which has successfully established and currently operates a 120-ha organic
honeydew melon farm in the south-central province of Binh Thuan.

Insiders said that foreign companies are willing
to collaborate with Vietnamese businesses to standardise farming and production
processes in order to improve the supply capacity of these businesses, thus stabilising
the supply of goods for their supply chains.

Abundant
opportunities of direct investment



Besides seeking reliable supply sources, numerous
businesses from the RoK, the US, and Europe are keen on directly investing in
Vietnam.

Jean Jacques Bouflet, Vice-Chairman of
the European Chamber of Commerce in Vietnam (EuroCham), said with its strategic
geographical location, stable economy, young workforce, and favourable
policies, Vietnam is emerging as an increasingly important destination in the
global supply chain.

Since the signing of the EU-Vietnam Free Trade
Agreement (EVFTA) in 2019, European enterprises have invested in 2,250 projects
worth 26 billion USD in Vietnam.

In addition, the race for investment in Vietnam has attracted numerous leading US
corporations such as Apple, Qualcomm, Nike, Morgan Stanley, Intel, GE, ACORN
International, General Dynamics, and Google. Recently, Boeing also
explored opportunities to expand its investment in Ho Chi Minh City, especially
in material supply facilities and establishing technical centres, Sai Gon Giai Phong Newspaper reported.

According to Maxime Dourdan, Director of Supply Chain Development for Boeing in Southeast Asia, Japan, and the RoK, compared to Japan and the RoK, Vietnam holds
a significant advantage when it comes to production costs.

Additionally, the capacity of the Vietnamese supporting industry has significantly
improved in recent years, with many Vietnamese businesses becoming part of the
global supply chains of large corporations like Samsung, Sanyo, Intel, and
others. This
serves as a foundation for Boeing to explore cooperation and expand
its supply chain investments in Vietnam, Dourdan said.

Statistics
from the Ministry of Planning and Investment show that foreign firms invested 18.15
billion USD in Vietnam in the first eight months of 2023, representing an increase
of 8.2% compared to the same period last year.

To attract more sustainable investment inflows, there should be consistency in
investment incentive policies to reassure investors about long-term business operations
in the Southeast Asian nation, said Hong Sun, Chairman
of the Korea Chamber of Business in Vietnam./.



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