HANOI - After proclaiming success in containing the coronavirus, Vietnam is positioning itself as a safe place to do business, capitalising on demand from international manufacturers looking to diversify their supply chains away from China.
The company, which has a client base of mainly Japanese and Korean investors, said it is speeding up plans to finish a 100,000 square metre factory in southern Vietnam in anticipation of an increase in post-pandemic demand.Advisers who help foreign firms relocate internationally said Vietnam's success in dealing with the pandemic had already boosted the confidence of foreign investors in the country.
"These opportunities will include the shifting of investment, particularly by large multinational groups seeking to diversify their supply chains to other areas, including Southeast Asia," deputy minister Tran Quoc Phuong said in a statement on a government website."Vietnam is among the first of those destinations."Before the pandemic, many China-based businesses looking to escape rising labour costs and fallout from the US-Sino trade war had been looking at Vietnam.
According to a government survey, 85.7 per cent of 126,565 enterprises polled in Vietnam said they had been negatively affected by the pandemic, with those operating in the aviation, tourism, food and education sectors most affected.
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