In 2020, due to the
impact of the covid-19 epidemic, the global supply chain will be seriously
affected. Besides, the effects of the US-China trade war, the shift of
production out of China took place quickly. In which, there are four areas that
corporations tend to shift to Vietnam to set up company and
make investment are information technology and high technology, electronic
equipment, e-commerce and logistics, consumer goods, and retail.
Some big global
corporations have started recruiting, searching for supply chains, and Vietnam
is one of the destinations in the transition to other countries in the region
such as Indonesia, Thailand, or Malaysia.
Vietnam, with the
advantage of being close to China, is favorable for the movement of investment
and machinery. Besides, having policies to attract FDI from Vietnam will make
it easier for international investors to transfer investment.
At the same time,
Vietnam also participates in many Free Trade Agreements such as CPTPP, EVFTA,
etc. that facilitate trade relations with many countries and regions in the
world, which will make cooperation more favorable. In addition, the stability
in the value of Vietnam currency is also a strong point in attracting
international investment.
As the report of a
famous industrial real estate brokerage firm, data comparing occupancy rates
and rental rates of industrial zones in Southeast Asian countries in the first
quarter shows that Vietnam has an average rental rate of 45-50% lower than in
Thailand, Malaysia, and Indonesia. According to a report in 2019, Vietnam’s
labor costs are also lower than that of Thailand, Malaysia and Indonesia, in
addition, the labor force in Vietnam is increasingly abundant and the quality
of labor is increasing.
Regarding electricity
prices, according to EVN, comparing electricity prices in 2019 of Vietnam
compared to other countries in the region, according to statistics, shows that
electricity prices in Vietnam reach 80% compared to electricity prices of
Indonesia; 42.1% of the electricity price of the Philippines and 66.7% of the electricity
price of Cambodia.
In addition, with the application of supportive policies such as reduction of corporate income tax, import and export tax, land rental assistance, labor supply, and administrative procedures, Vietnam deserves to become be best investment destination in the world, for international companies to make investment, establish company and obtain investment registration certificate.
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