Vietnam
is expected to move into the top 10 most competitive nations for manufacturing
in next five years.
According to a Global Manufacturing
Competitiveness Index report released by Deloitte Touche Tohmatsu and the US
Council on Competitiveness, Vietnam will jump from its current global ranking
of 18th to 10th.
The report is based on the responses of more
than 550 senior manufacturing executives worldwide to a wide-ranging survey
discussing the current business environment and manufacturing sector global
competitiveness.
This is the second time this report has been
released and the first time Vietnam is ranked among the most competitive
nations for manufacturing.
Executives said access to talented workers
was the top indicator of competitiveness, followed by a country's trade,
financial and tax policies, and then the cost of labour and materials, supplier
network, legal and regulatory system, physical infrastructure, energy cost and
policies and local market attractive.
Currently, China is the most competitive and
is expected to hold that distinction five years from now, followed by India,
Brazil and Germany. In South East Asia, Vietnam is the second most competitive
manufacturing nation, following Singapore but ahead of Thailand, Malaysia and
Indonesia.
"Frontier markets in Asia such as
Vietnam and Indonesia are on the rise," said Tim Hanley, Deloitte Touche
Tohmatsu's global leader of manufacturing.
"The global CEO survey results echo the
view that while China and India are still prominent in discussions,
manufacturers are turning their focus to these frontier markets for growth to
capture both the growing local consumer demand and to serve as strategic
manufacturing hubs in the global value chain," he added.
Foreign direct investment inflows into
Vietnam are currently on a downward trend amid the challenging domestic economy
and global economic troubles. However, the responses of executives in this report
underscore the attractiveness of Vietnam for manufacturing investors in the
long-term.
Several multinational companies have recently
announced huge investments in Vietnam. Samsung Electronics this month got an
investment certificate for investing additional $830 million in Vietnam. Back
to April, Nokia broke ground of its $320 million mobile-phone factory in Bac
Ninh province, not far from Samsung's manufacturing site.
Coca-Cola last month announced plans to
invest an additional $300 million in Vietnam, raising total investment capital
of this company in the country to $500 million.
"Vietnam is an important growth market
in Asia-Pacific as we work to achieve our 2020 vision goal of doubling system
revenues this decade," Muhtar Kent, chief executive officer of Coca-Cola
Company, said during a visit to Hanoi.
"Vietnam's economy has maintained
healthy growth in recent years and this new financial commitment is more than
an investment in Coca-Cola's expansion in Vietnam, it is also an important
acknowledgement of our belief in the long-term potential of this key
market," he added.
Japan's Fuji Xerox, a manufacturer of
copiers, multifunction devices and printers, in August also decided to build a
$110 million manufacturing facility in Haiphong.
Fuji Xerox said it chose Vietnam because of
the country's steady progress toward industrialisation.
"The country is advantageous as it has
industries such as information equipment manufacturers in a concentrated
manner, as well as an extensive land transportation network connecting the
country with China, Thailand and other ASEAN nations, which will facilitate
Fuji Xerox in establishing supply chains," the company said in an
announcement.
Ninh Kieu | vir.com.vn
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