In an article on the website of S&P Global Market Intelligence, Asia Pacific Chief Economist Rajiv Biswas said Vietnam is expected to continue to be a key beneficiary of the shift in global manufacturing supply chains towards competitive Southeast Asian manufacturing hubs.
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| Illustrative image (Photo: laodong.vn) |
He held that Vietnam would continue to benefit from its relatively lower manufacturing wage costs relative to coastal Chinese provinces. It has a relatively large, well-educated labor force compared to many other regional competitors in Southeast Asia, making it an attractive hub for manufacturing production by multinationals.
Besides, many multinationals have been diversifying their manufacturing supply chains during the past decade to reduce vulnerability to supply disruptions and geopolitical events. The country is also set to benefit from its growing network of free trade agreements such as the ASEAN Free Trade Agreement (AFTA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the EU-Vietnam Free Trade Agreement (EVFTA), and the Regional Comprehensive Economic Partnership (RCEP), Biswas added.
The Economic Times said Vietnam is among the economies likely to benefit from the global supply chain changes, and that it has done relatively well in attracting big names in the past few years such as Samsung, Apple, Google, Nike, and Adidas.
On Eurasia Review, analyst and journalist Matija Šerić cited PricewaterhouseCoopers as saying that Vietnam is already a regional (middle) power, and in the future, it could become an even stronger power in Asia and the Indo-Pacific region, maybe even wider. By 2050, Vietnam’s economy could be the 10th largest in the world.
