PM dubs Vietnam “big factory” for the world

By Anh Minh   December 5, 2018 | 09:03 am GMT+7
PM dubs Vietnam “big factory” for the world
A man works at a mechanical factory in Hanoi. Photo by Reuters/Kham

Vietnam has become a “big factory” for the world, supporting as it does the operations of major transnational corporations.

Prime Minister Nguyen Xuan Phuc made this characterization at the Vietnam Business Forum 2018 (VBF 2018) held Tuesday in Hanoi.

"The presence of many leading corporations in Vietnam, like Samsung, Intel, Canon, Fujitsu, Toyota, Honda, Nike, VinaCapital and thousands of other FDI enterprises signals the quality of Vietnam’s investment environment and its growth prospects," he said.

Vietnam has so far attracted some 27,000 foreign invested projects worth more than $335 billion.

Many private enterprises have also developed and become competitive, they have also become partners of many international giants, he noted.

Vietnam’s manufacturing sector has expanded at its fastest pace in more than seven years thanks to strong orders and output, bucking the trend of slower growth elsewhere in the world.

The headline Nikkei Vietnam Manufacturing Purchasing Managers’ Index, or PMI, rose from 53.9 in October to 56.5 in November.

New orders increased sharply, encouraging manufacturers to increase production. The rate of output growth quickened to the fastest since March 2011. Business sentiment was at the highest level since February 2016, signaling further growth in the sector, according to Nikkei Asian Review.

The PM promised that his government would prioritize investment in technology, research and development and infrastructure to facilitate businesses’ operations.

Vu Tien Loc, chairman of the Vietnam Chamber of Commerce and Industry, quoted businesses as saying start-ups and the electricity sector have seen the most reforms, while they have been most lacking in bankruptcy regulations, investor protection and export/import formalities.

He said the government should continue its efforts to improve the investment environment.

The mechanisms for resolving problems faced by companies have to be improved, and this process has to be overseen by an independent agency, he added.

 
 
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