The E&E industry promises to bring opportunities to domestic businesses, including the construction industry with many new factories. Photo: thesaigontimes

Strong wave of displacement

Technology giants such as Apple in the US completed the transfer of 11 factories producing audio-visual equipment to Vietnam.

Intel Corporation also expanded the second phase of its chip testing factory in Ho Chi Minh City with a total investment of US$4 billion.

Samsung moved its entire phone production line to Vietnam and India. Currently, 60% of Samsung's smartphones sold worldwide are being produced in Vietnam.

This wave of shifting also comes from China. In the first 11 months of 2023 alone, China has taken the lead in the number of new projects entering Vietnam with 632 projects and a total capital of more than US$3 billion (2nd highest in terms of registered capital).

The wave of investment in Vietnam in the E&E (electricity and electronics) sector is expected to help Vietnam expand its demand for high-precision manufacturing and electronic equipment.

Business productivity will be enhanced when new technology and solutions are added globally.

In particular, with support from the public and private sectors, Vietnamese manufacturers can achieve high productivity and more innovation in production with fewer resources, keeping up with the general trend of the region.

Vietnam - new investment destination

Businesses choose Vietnam as an investment destination after supply chain disruption from the Covid-19 pandemic. Vietnam possesses abundant human resources, meeting the supply of highly qualified labor, competitive labor prices, and many preferential tax policies for foreign investors. Those are the investment attractions of Vietnam recently.

For Chinese businesses, Vietnam also shares a common border, and has convenient transportation routes for transporting goods and raw materials for production.

The Northern region also attracts the most investors due to competitive industrial park rental prices.

In addition, Vietnam's practice of the "open door" policy through free trade agreements with many countries and regions around the world helps Vietnam integrate more deeply with the global economy.

This is also a point that makes investors consider this a "good" land to establish operations.

The VinES battery factory. Photo: thesaigontimes

In the opposite direction, Vietnamese businesses are also ready to take advantage of the wave of investment shift from the E&E industry.

For example, to anticipate the need to build electronic factories in the E&E industry, four years ago, NS BlueScope Vietnam researched and launched a pioneering product line on the market specifically for sandwich panels - Colorbond for Panel.

The product is often used by factories to make partitions, meeting strict industry standards.

The wave of shifting E&E factories from countries in the region, especially China, is opening up a great opportunity for domestic businesses. Catching up with opportunities will be the key to helping businesses "open" this potential door.