Vietnam is increasingly improving its position in the global value chain. Photo: hanoimoi

Savills' report shows that Vietnam's position in the value chain continues to improve.

According to Savills, Vietnam is focusing on attracting high value-added investments by improving the workforce, and infrastructure, and creating favorable conditions for small and medium enterprises as well as supporting industries.

"The importance of technology transfer from foreign investors cannot be underestimated in Vietnam's value chain development, especially related to improving the qualifications of the workforce," said John Campbell, associate director, head of Industrial Services at Savills Vietnam.

Many large investors include Vietnam in their future development plans. Global financial services group JP Morgan estimates that by 2025, Apple will transfer 65% of AirPod production, 20% of iPad, 20% of Apple Watch, and 5% of MacBook production to Vietnam.

Intel is also planning to expand the second phase of its chip testing factory in Ho Chi Minh City by 2025, with a large investment of up to US$4 billion.

Other American companies such as Boeing, Google, and Walmart announced plans to expand their supplier networks and production facilities in Vietnam after market research.

Foreign direct investment (FDI) projects of European Union countries in Vietnam also recorded a significant increase in recent times. As of June 2023, there were a total of 2,508 projects with a total registered investment capital of up to US$28.91 billion. Compared to 2016, this number is 1,623 projects with a total investment capital of US$18 billion.

Among them, the Netherlands leads with 427 projects, with a total investment capital of US$14.1 billion, equal to 49% of the European Union's investment capital in Vietnam. France holds the second position with US$3.8 billion of total investment capital.

John Campbell said that in 2023 there will be three deals from German businesses including Fuchs, Farmas, and J. Wagner.

As for the US, President Joe Biden's visit and the upgrade of the comprehensive cooperative relationship between Vietnam and the US are expected to increase investor interest.

Photo: tapchitaichinh

Recently, Savills Vietnam met many American investors, mostly from the manufacturing and electronic technology industries, who have come to Vietnam, eager to explore new projects.

September was also the time when Apple announced that it completed the transfer of 11 audio-visual equipment factories to Vietnam.

Google also said that Vietnam is on the list of potential markets the company is considering investing in Southeast Asia in the near future.

To attract American and European "eagles," John Campbell recommends that industrial park developers should focus on value-added services and incentives other than rental prices such as market entry services, HR and legal support, and management services.

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