Vietnam is gradually becoming new hub for the production of technological devices and components in Asia for many of the major technology companies, which are focused on weaning themselves from China for the manufacture of chips and all kinds of gadgets. And there are not a few who have set their eyes on this Asian country.
According to Digitimes, between 2015 and 2020, the Vietnamese manufacturing industry has received direct investment from South Korea and Japan for a value of 376 billion of dollars. Samsung Electronics, by the way, contributed a quarter of South Korea’s total investment. In addition, Intel has established its main chip packaging factory in the country.
LG Electronics is another of the companies that Vietnam has chosen for the future, and in 2021 it announced that it was going to invest 1,000 million dollars in the port city of Haiphong to increase its OLED screen manufacturing capacity. Samsung, meanwhile, is building a research and development center in Hanoi, while Qualcomm’s only test lab in Southeast Asia is also in Hanoi. These companies may soon be joined by others, such as Panasonic and Toshiba, which are considering opening research and development centers in Vietnam.
A few years ago, the technology companies began to transfer part of their production to Vietnam. Especially since the escalation of trade tensions between China and the United States. The successive lockdowns that China is experiencing due to COVID-19 have helped speed up the process of moving production to Vietnam. Apple is one of the companies that is rushing to change its production from one country to another in the region.
Until now, Vietnam has 335 industrial parks, occupying a total of 100,000 hectares. And everything indicates that it will continue to expand them to meet the demand of foreign technology investors, who do not stop investing in the country. According to the Vietnamese Association of Foreign Invested Enterprises (VAFIE), the foreign direct investment It represents the largest percentage of capital flow today. Their percentage has risen from 44% in 2019 to 51.34% in 2022.
