Wed, 27 Aug 2014. Last updated Thu, 25 Jun 2015 08:48
As a country of 90 million people and the majority of them are of working age, Vietnam is becoming an ideal market for technology giants like Samsung, LG and Microsoft. The stable macroeconomic environment, preferential policies for high-tech corporations and the low labor cost also make Vietnam attractive to those giants.
In mid-August, Microsoft – the new owner of Nokia has announced the plan of investing in Vietnam that chooses the factory of Nokia Vietnam in Bac Ninh Province as the key production facility of smartphone. This move is considered as a turning point because this 150-year-old phone brand is in the process of “transfusion”. All Nokia factories in Hungary and a part of the factory in China have been stopped to move productions lines to Vietnam. It is expected that over 30 productions lines from factories worldwide will brought to Vietnam later this year. Simultaneously, the capital disbursed for the plant will rise; the monthly output increases threefold; the complexity of products is improved. As a result, the prices of products and export values step up.
Earlier, Samsung has announced to choose Vietnam as a “global manufacturing base” with nearly $ 6 billion registered capital. The senior management of the enterprise said that after 5 years of official operation in Vietnam, the scale of investment of Samsung Vietnam has increased tenfold. He added that this showed Vietnam economy is stable with favorable conditions. Compared with other countries in the region, the political stability is one of the main factors that create confidence for foreign investors.
LG Electronics has recently declared the plan of putting a $ 1.5-billion project into operation in October 2014. Unlike Nokia and Samsung, LG chooses Vietnam as the production facility of TV, washing machine and vacuum cleaner. The corporation also expresses its interest in smartphone market in Vietnam and confirms that after constructing market, the factory in Vietnam will produce smartphone.
Apple has not officially invested in Vietnam though, it is in collaboration with FPT Vietnam to research the market and make long-term plans. This plan was revealed as the revenue of Apple in Vietnam witnessed an impressive growth. According to Reuters, Apple’s sales in Vietnam increased threefold in just 3 months, 5 times faster than India. In the press conference in last July, Vietnam market was appreciated as a potential market. It is a rare comment of Apple when assessing the outlook of markets worldwide.
After the moves of large investors, the foreign direct investment in Vietnam is considerably increasing; the labor is prevented from unemployment; local economy is improved; and the export values boosts. Only Samsung with over $ 20 billion in export turnover in phone and components has contributed greatly to improving the balance of trade of Vietnam.