WORDS ON THE STREET 70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Investment / News
Vietnam benefits from new global supply chain order
Ngoc Mai 11:53, 2019/08/29
With manufacturing moving to Vietnam, with more employment getting created there, people having higher disposable income, that starts a trend of consumption story, said executive at US investment firm General Atlantic.
The prolonged US – China trade war is reordering the global supply chain and Vietnam could stand to be a winner for investors, CNBC reported.
 
Illustrative photo.
Illustrative photo.
As US companies plan to move their manufacturing bases outside China, countries in Southeast Asia could be the biggest beneficiaries, Sandeep Naik, head of India and Southeast Asia at General Atlantic, told CNBC’s “Street Signs ” on Tuesday.

“If you look at certain sectors like auto and chemicals, you see a large outflow of those manufacturing opportunities moving to Vietnam,” Naik was quoted by CNBC as saying, adding that the investor community is closely watching for new investment destinations in the region.

General Atlantic has about US$35 billion assets under management. The company invests in start-ups with high growth potential in four main areas: consumers, financial services, health care and technology.

“We’re looking at Vietnam as a very interesting destination at this point,” Naik said. “With manufacturing moving to Vietnam, with more employment getting created there, people having higher disposable income, that starts a trend of consumption story.”

Analysts previously said Vietnam, which exports phone parts, furniture, automatic data process machines, emerged as the largest beneficiary as trade flows were diverted.

There are new opportunities for financial services too, he added, explaining that the manufacturing firms shifting to Vietnam need credit.

“So credit to the (small and medium enterprise) sector, credit to the mid-sized manufacturing unit, then creates another fillip or a boost to the financial services industry,” Naik said.

He did not mention any specific companies in Vietnam that General Atlantic is currently looking at.
But Naik noted that investors will need to grapple with a lot of local issues and nuances as they learn to operate in the local landscape.

“We need to have people on the ground that will really help us navigate those issues, but if you look at the foreign direct investment that’s happening in Vietnam at this point, you can see that the gates are opening,” he said.

Still, other analysts have cautioned that Vietnam may have other challenges.​

Recently, the president and CEO of the US-ASEAN Business Council told CNBC that the labor market in Vietnam is tightening, and investors are now looking to move manufacturing into other Asian countries, like Thailand.
Other news
21:55, 2024/10/22
Better links with FDI firms to support Hanoi businesses
Hanoi will continue to focus on quality projects, especially with partners such as Japan, the United States, and Europe to boost technology transfer.
15:24, 2024/09/24
Vietnam calls for more US investment in innovation, hi-tech
The Vietnamese leader called on relevant agencies to resolve any challenges faced by investors and enhance the investment climate to encourage greater US investment in Vietnam.
14:13, 2024/09/23
Vietnamese leader urges Boeing to build production facility in Vietnam
Boeing is committed to continuing to support the development of Vietnam's aviation ecosystem, focusing on aviation infrastructure, human resources training, airport construction, and aircraft maintenance facilities.
14:38, 2024/09/17
Foreign capital pouring into Vietnam's real estate market
Experts are optimistic that the 2024 Land Law, once enacted, will help resolve legal bottlenecks and attract more FDI.
16:27, 2024/08/24
Vietnam news in brief - August 24
Read The Hanoi Times to stay up to date on developments in Vietnam.
20:15, 2024/08/11
Growing number of FDI firms moving to Vietnam
Over the past 20 years, Vietnam has emerged as a significant manufacturing hub, deeply integrated into global supply chains.