Illustrative photo (Source: VNA)Hanoi (VNA) - Vietnam will remain at the centre of Asian supply chains and one of themost competitive manufacturing locations in the Asia-Pacific region, saidanalysts at the Economist Intelligence Unit in a report on the country releasedon January 13.
The report entitled Rising star: Vietnam's role in Asia's shifting supply chains, focused on examining Vietnam’s labour market,investment attraction policy, and trade relationships.
Accordingly, low-skilled manufacturing wages rise will bekept at a moderate pace relative to Vietnam’s regional competitors. However,specialised labour in manufacturing and services professions will remainscarce. In the field of investment, high-tech manufacturers will continue toenjoy incentives for many years to come. In addition, Vietnam has joined manytrade agreements and maintained good relations with trading partners, helpingto reduce transaction costs for local businesses.
EIU Senior Analyst John Marrett said tax and foreign directinvestment policies as well as measures to control foreign trade and exchange arethe main strengths of the Vietnamese business climate compared to othercountries in the region.
These are underpinned by the country’s domestic politicalstability, which is higher than that of most other Southeast Asian countrieswith similar economic development level, he added.
The EIU is a global leading resource for economic andbusiness research, forecasting and analysis./.
VNA
