Vietnam Leads Asia as Top Magnet for Long-Term Manufacturing Investment

Vietnam is solidifying its position as a top magnet for long-term manufacturing investment in Asia. A Malaysian economist highlights Vietnam's economic growth, particularly the substantial contribution of its digital economy. Hanoi's Gross Regional Domestic Product (GRDP) grew by 8.2%, with the digital economy accounting for approximately 1.1 percentage points, underscoring its substantive role in driving growth beyond mere policy objectives. Vietnamese businesses are accelerating the adoption of circular economy practices to improve competitiveness, reduce emissions, and meet increasingly stringent sustainability standards. This strategy is crucial for enhancing the competitiveness of Vietnamese products in international markets where environmental regulations are tightening. Measures revolving around investment in logistics infrastructure, expansion of multimodal transport, and acceleration of digital transformation are intended to reduce logistics costs, enhance competitiveness, and support sustainable growth in external trade. Such infrastructure development is vital for attracting foreign direct investment. If the Central Highlands harvest proceeds smoothly and pending issues related to growing-area and packing-house codes are resolved promptly, exports could generate an additional $2 billion USD in the remaining months of the year, pushing the whole-year figure beyond $3.8 billion USD last year. This demonstrates the strength of Vietnamese agricultural products, one of its key exports, in the international market. The US' recent tariff decision appears to overlook realities regarding Vietnam's labor environment and manufacturing practices. Vietnam has made progress built on mutual respect, transparency, and sustained efforts to comply with international standards. The Vietnamese government urges the US side to fully take into account the measures Vietnam has adopted when adjusting tariffs on Vietnamese goods, consistent with the actual situation and Vietnam's ongoing legislative and enforcement push. This suggests Vietnam's emphasis on building relationships with major trading partners to diversify and stabilize its export markets. Domestically, the near-completion of the second runway at Phu Quoc International Airport signifies the modernization of aviation infrastructure. Furthermore, amendments to anti-money laundering laws are a crucial step towards enhancing the transparency and international credibility of the financial system. Additionally, the Vietnam Chamber of Commerce and Industry (VCCI) has launched a program to nurture a new generation of internationally competitive CEOs, focusing on strengthening the management capabilities of domestic enterprises. These developments indicate that Vietnam is aiming for the overall sophistication and sustainable growth of its economy, not merely serving as a manufacturing hub. While the government-led economic policies under the one-party system enable rapid infrastructure development and industrial promotion, continuous efforts are required to meet international standards and market demands. In its relationship with China, Vietnam appears to be seeking strategic balance by diversifying its supply chains and strengthening ties with other countries, while maintaining economic interdependence. Copyright, VietnamPlus, Vietnam News Agency (VNA) Editor-in-chief, Mr. Tran Tien Duan.