Production of electronic parts at Youngbag Micromotor Vietnam in Vinh Phuc's Binh Xuyen Industrial Park. (Photo: VNA)Though rapidly rising Delta COVID-19 infections have hitmanufacturing in Ho Chi Minh City, Vietnam’s commercial hub, the big-picturestory of Vietnam being a favoured destination for foreign investment is not expectedto change, the daily newspaper said. Even as forecasts are trimmed, economistshave faith the nation will bounce back.
“In recent decades, Vietnam has excelled in reeling in thebig fish in electronics, footwear and clothing,” it said. “Low labour costs,reliable infrastructure and a smooth bureaucratic process have attracted thelikes of Samsung, Foxconn, Nike, Adidas, Gap and Levis.” Many factories thatare still open are striving to maintain production under the “3 in 1” policywhereby employees eat, sleep and work on site.
While some expats have cleared out, many others have stayed.“The small and medium-sized business owners who have investments here havestayed. Most are not panicking. They want to be here, so their companies canrecover as soon as possible,” it quoted Simon Fraser, executive director of theAustralian Chamber of Commerce (AustCham) in Vietnam, as saying.
HSBC has cut its economic growth forecast for Vietnam from6.1 percent this year to 5.1 percent. “Despite near-term challenges Vietnam’srecovery prospects still look rosy with strong fundamentals,” wrote HSBCeconomist Yun Liu.
“Vietnam will bounce back because it has such a competitiveadvantage in labour costs,” she said./.
VNA
