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    Vietnam will continue to witness the influx of FDI in 2022: Vina Capital experts

    Geographically advantageous locations, reduced labor costs and increased foreign investment help Vietnam secure its position as a major foreign direct investment (FDI) destination, according to VinaCapital Michael Kokalari’s Chief Economist. There are three important factors that can help. The country’s factory wages are less than about two-thirds that of China, but the quality of the workforce is comparable, he said.

    VinaCapital is a venture capital platform focused on Vietnam.

    Vietnam is geographically close to the Asian supply chain, especially in the high-tech industry.

    VinaCapital Michael Kokalari’s Chief Economist said that geographically advantageous locations, reduced labor costs and increased foreign investment are three key factors that help Vietnam secure its position as a key destination for FDI. It states that. The country’s factory wages are less than about two-thirds that of China, but the quality of the workforce is comparable, he said.

    He said Vietnam is the most attractive destination in the region, as Japan and South Korea face structural problems that force them to invest abroad. In addition, the first two countries are plagued by “secular stagnation”, primarily caused by demographic deterioration or decline, and other factors, including large debt.

    In addition to the above three factors, news agencies reported that more and more multinationals are seeking to diversify their manufacturing outside of China.

    All these factors will help drive FDI in 2022. Three developments will also help support such an influx.

    First, the US Treasury and the State Bank of Vietnam reached an agreement in July to eliminate the risk that Vietnam will be considered a currency manipulator in the future and increase the confidence of multinationals to invest in Vietnam.

    Second, the remarkable speed of Vietnam’s vaccination campaign after the emergence of Delta variants is confident that the government is committed to achieving a cautious balance between public health and economic health concerns. Give to foreign companies.

    Lego of Denmark has announced that it will invest $ 1 billion to build one of the largest factories in southern Vietnam, but Kokalari concludes that this is the third development.

    Fiber2Fashion News Desk (DS)

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    Vietnam will continue to witness the influx of FDI in 2022: Vina Capital experts

    Source link Vietnam will continue to witness the influx of FDI in 2022: Vina Capital experts

    The post Vietnam will continue to witness the influx of FDI in 2022: Vina Capital experts appeared first on Eminetra.

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