Several reports have said that the MNCs are attracted by key advantages that Vietnam offers including cheap labor and strong growth potential.

A recent CNCB report shows that Vietnam has overtaken China as the biggest producer of Nike footwear, produced 51 percent of its shoes here, compared 21 percent in the neighboring giant.

Workers of Pouyuen Vietnam, a supplier for Nike and Adidas, leave work on June 3, 2021.

Chinese media have reported that Nike’s rival Adidas is going the same route with 40 percent of its footwear made in Vietnam.

As of August last year, Nike had 138 suppliers in Vietnam with a total of 484,000 workers, mostly in the south.

Industry insiders say that Vietnam’s cheap and abundant labor pool (compared to China) is why Nike and Adidas have been allocating more production here.

Some other foreign direct investment companies have also been making moves to invest more in Vietnam.

Earlier last year Apple’s supplier Foxconn said it would build a table and laptop factory called Fukang Technology with a total investment of $270 million. The factory will be capable of making 8 million products a year, it said.

The Taiwanese electronics contract manufacturer has so far invested $1.5 billion in Vietnam.

Its competitor Pegatron expanded its presence Vietnam in September 2020 with a $1 billion investment in an electronics plant in the northern port town of Hai Phong.

The trend of major companies shifting production and business to Vietnam has taken hold in recent years.

For instance, South Korea’s Hanwa, a manufacturer of motorbike parts has established a plant in Hanoi; Japan’s Yokowo established a factory in the northern province of Ha Nam to make vehicle parts; while China’s Huafu, a garment producer, has started operation in southern province of Long An.

South Korea’s LG poured an additional $1.4 billion into its plant in Hai Phong last year, bringing the total investment to $4.65 billion, making the company the biggest foreign direct investor in the port town.

Sharp, Nintendo, Komatsu and Lenovo have all announced plans to move to or expand their presence in Vietnam.

But Nguyen Mai, chairman of Vietnam’s Association of Foreign Invested Enterprises (VAFIE), said he expected more European, American and Asian companies to enter Vietnam this year apart.

Businesses care for labours on Tet occasion

(BGO) – It is nearly one month to come Lunar New Year 2022. In spite of encountering numerous difficulties caused by Covid-19 pandemic, the businesses in the northern province of Bac Giang have taken efforts to balance the expenses to give Tet bonus to labours. The gift helps encourage and pay tribute to the labour as well as maintain stable human resources.

Businesses conquer challenges

(BGO) – In the middle of 2021, Covid-19 pandemic outbreak caused severe impacts on operation of business community in Bac Giang province. To firmly stand after the pandemic, the companies have taken great efforts to step by step overcome the difficulties, recover the production and business.

Bac Giang business gives highest Tet bonus of nearly 10,000 USD per person

(BGO) – The highest bonus for 2022 Lunar New Year of 228 million VND (nearly 10,000 USD) is given by Fugiang Company Limited (Hon Hai Precision Industry Co Ltd ) in Van Trung industrial park, Viet Yen district, Bac Giang province, reported the Department of Labour, Invalids and Social Affairs (DoLISA).

Bac Giang shares business and investment opportunities to young entrepreneurs

(BGO) – In the afternoon of January 5, the Young Entrepreneur Association (YEA) in Bac Giang province held a conference themed “Bac Giang young entrepreneurs join hands to create future and development solution in post Covid-19 period”, concluded the 2021 operation and implemented 2022 tasks.

Source: VnExpress