Vietnam has more opportunities in the supply chain

However, China’s persistence in a strict blockade under the “No Covid-19” strategy made many companies continue to “rethink”. In that context, some Southeast Asian countries – including Vietnam – are mentioned more.

“The level of interest in manufacturing in Vietnam is very significant. Vietnam has become a very important knot in the supply chain of consumer electronics,” said Mr. Vishrut Rana, economist at the rating agency. S&P Global Ratings (USA), commented in an interview with CNBC channel.

According to data from the financial information company Wind Information (China), Vietnam’s exports in April increased by 30.4% over the same period last year, reaching a total value of 33.26 billion USD.

A Samsung phone factory in Thai Nguyen – Vietnam Photo: BINH AN

According to Mr. Rana, China still plays a central role in the electronic goods network and only the supply chains of very specialized products – such as semiconductors or electric vehicle parts – can move to Vietnam, Malaysia or other countries.

One thing to learn from China, is that their advantage is not only based on cheap labor, but also thanks to the central supply chain system, which helps businesses increase efficiency by integrating all suppliers into a digital platform.

In a survey by the European Union Chamber of Commerce (EU) in China at the end of April, nearly a quarter of the 372 participating enterprises said they were considering investing in other markets, but 77% said no such plan.

“Moving operations out of China is difficult, but our survey shows that investment in China is falling and investment in Southeast Asia is increasing,” said Joerg Wuttke, President of the EU Chamber of Commerce in China. Quoc, said in a recent seminar.