Vietnam has the potential to become the center of global supply chains

Currently, Vietnam is becoming the main factory for many large foreign technology companies. This will probably attract investors to Vietnam's logistics industry…

According to Tech Collective, China has always been the largest supplier of technology components and plays a key role in the supply chain ecosystem of Apple, Samsung and LG Electronics. However, after COVID-19, there have been many significant changes, Vietnam is becoming one of the largest production centers for these companies. In addition, because to prevent complicated developments of the Covid-19 pandemic, China is implementing many policies to reduce the vitality of the economy. This has contributed to creating opportunities for Vietnam to develop as a center of the supply chain.

In addition, the country's shift to focus on manufacturing can also attract investors to increase capital in Vietnam's logistics technology industry. Vietnam is the leading country in Southeast Asia in terms of infrastructure investment, spending 6% of GDP per year in this sector, 2.3% higher than the average of countries in the region. However, the Vietnamese market still has some disadvantages, such as high costs and inefficiencies in transshipment, which requires new technology applications to improve logistics performance and capacity. competitiveness of Vietnam.

Tech giant Apple is currently manufacturing iPads in Vietnam and is also considering producing the first "made in Vietnam" Apple Watch and Macbook. This has opened the door for local businesses to cooperate in the supply chain of Apple products. In addition, Apple also seems willing to develop the "China plus Vietnam" model, proving that Vietnam is very likely to profit from the US-China trade tension.

In 2021, Vietnam exports goods worth $125 billion, of which electronics, computers and computer components reach $50.8 billion. This sector accounts for more than 40% of Vietnam's total export value. FDI into the manufacturing industry and real estate market also increased significantly, with 245 billion USD and 65 billion USD, accounting for 75% of the total accumulated committed capital. As of December 2021, Vietnam's Ministry of Planning and Investment (MPI) reported FDI projects worth 19.74 billion USD with names like LG, LEGO Group, Samsung and others. other major manufacturers.

Vietnam also offers a skilled workforce but competitive labor costs and favorable infrastructure. The Vietnam-EU Free Trade Agreement in 2019 is also a stepping stone for a potential supply chain center like Vietnam to become an important gear in the global logistics field. Domestic political and economic stability is also an important factor for foreign businesses to consider when making investment cooperation decisions in Vietnam.

In addition, the Government has also shown its intention to invest significantly in the logistics technology industry. Currently, Vietnam is using its diplomatic power to build strong global relationships with important countries. And of course, this will help the country's logistics scene have the opportunity to develop further.