US newspaper: Vietnam more attractive to overseas investors
11:23, 2015/10/10
Vietnam is emerging as a more attractive destination for overseas investors, the Los Angeles Times, a US-based daily newspaper, said in an article on October 8.
Vietnam, a country where millions of people still subsist on farming, received a major boost from Silicon Valley a decade ago when chip maker Intel launched a semiconductor factory in the nation, the largest American investment in the country at that time.
The firm’s 1.04-billion-USD assembly and manufacturing plant added more complex products to the mix, such as central processing units and chip systems, and sent some of its 1,000 Vietnamese employees to the US for training.
Vietnam has since positioned technology at the centre of its growth and development goals, said General Manager of Intel Vietnam Sherry Boger, adding that the Intel facility and the technology ecosystem in Vietnam is climbing up the value chain.
Today, foreign direct investment (FDI), led by Japan, Taiwan and the Republic of Korea, constitutes about one-fifth of the country’s gross domestic product (GDP).
Singtex, a Taiwan-based hi-tech fabric producer, established a factory in Ho Chi Minh City last November and employs more than 400 local workers. Low labour costs and expectations that the Trans-Pacific Partnership (TPP) will help expand its business are among the reasons behind the decision, President Jason Chen said.
However, Vietnam is also facing fierce production competition in some basic goods, particularly garments, from its neighbours such as Laos, Cambodia and Myanmar, where labour is even cheaper.
To stay ahead of its peers, the country is trying to entice more hi-tech productions by upgrading its transportation infrastructure through Japanese development assistance.
Japanese aid has funded Vietnam’s first metro line, scheduled to open next year in Ho Chi Minh City, and a 210-billion-USD terminal to ease congestion at Hanoi International Airport.
Furthermore, construction started on a 1-billion-USD Samsung screen production factory last year after the Korean-based company launched a 2.5-billion-USD smartphone assembly centre in northern Bac Ninh province. The province is also home to Taiwan’s Foxconn Technology Group facility, a key Apple contractor, to produce cameras, computers and other electronic devices.
Another challenge facing Vietnam is its lack of skilled workers, human resources consulting firm ManpowerGroup said in a report. Only 3 percent of its 90-million-people population are graduates from its 400 colleges and universities, many of which lack lecturers for subjects relevant to working for foreign investors.
Intel has supported the country in a project to improve local university-level engineering programmes. The project is progressing well, even in its early stages, said Boger.
The firm’s 1.04-billion-USD assembly and manufacturing plant added more complex products to the mix, such as central processing units and chip systems, and sent some of its 1,000 Vietnamese employees to the US for training.
Vietnam has since positioned technology at the centre of its growth and development goals, said General Manager of Intel Vietnam Sherry Boger, adding that the Intel facility and the technology ecosystem in Vietnam is climbing up the value chain.
Illustrative image
|
Singtex, a Taiwan-based hi-tech fabric producer, established a factory in Ho Chi Minh City last November and employs more than 400 local workers. Low labour costs and expectations that the Trans-Pacific Partnership (TPP) will help expand its business are among the reasons behind the decision, President Jason Chen said.
However, Vietnam is also facing fierce production competition in some basic goods, particularly garments, from its neighbours such as Laos, Cambodia and Myanmar, where labour is even cheaper.
To stay ahead of its peers, the country is trying to entice more hi-tech productions by upgrading its transportation infrastructure through Japanese development assistance.
Japanese aid has funded Vietnam’s first metro line, scheduled to open next year in Ho Chi Minh City, and a 210-billion-USD terminal to ease congestion at Hanoi International Airport.
Furthermore, construction started on a 1-billion-USD Samsung screen production factory last year after the Korean-based company launched a 2.5-billion-USD smartphone assembly centre in northern Bac Ninh province. The province is also home to Taiwan’s Foxconn Technology Group facility, a key Apple contractor, to produce cameras, computers and other electronic devices.
Another challenge facing Vietnam is its lack of skilled workers, human resources consulting firm ManpowerGroup said in a report. Only 3 percent of its 90-million-people population are graduates from its 400 colleges and universities, many of which lack lecturers for subjects relevant to working for foreign investors.
Intel has supported the country in a project to improve local university-level engineering programmes. The project is progressing well, even in its early stages, said Boger.
15:17, 2024/11/04
Hiring multitaskers: Priority for Hanoi companies
Several sectors experience increased hiring demand in the remaining months of 2024
18:17, 2024/11/03
Hanoi seeks partnerships to build skilled workforce for digital transformation
Vocational training institutions play important roles in developing a quality workforce prepared for large companies.
18:35, 2024/10/30
Hanoi to host Vietnam-Asia Smart City Summit 2024
The summit aims to share best practices and promote cooperation among Vietnam's provinces and cities in building and developing smart cities.
15:53, 2024/10/29
Vietnamese spend $8.9 billion on ecommerce
The total transaction volume in the Jan-Sep period increased by 37.7% compared to the same period last year.
14:48, 2024/10/29
Hanoi steps up inspections to crack down on unsafe food
The purpose of the survey is to gain a thorough understanding of the local food safety situation and to identify non-compliance promptly, allowing for corrective actions to be taken to mitigate health risks.
22:24, 2024/10/23
SEMIEXPO Vietnam 2024 to foster growth of semiconductor industry
The exhibition aims to develop the ancillary industry ecosystem and attract investment from the world's leading semiconductor companies.
- Hanoi targets double-digit growth over next decade
- Hanoi's industrial production shows positive growth
- Hanoi launches Vietnamese Fashion Product Brand Festival 2024
- Exhibition promotes Hanoi's key industrial products
- New partnerships forged at Hanoi Industrial Development Conference
- Hanoi addresses administrative challenges through dialogues