Cushman & Wakefield commented that in the ASEAN region, Vietnam is quickly asserting its position as a key growth center, with high foreign direct investment capital.
Vietnam is able to accommodate this growth by focusing heavily on electronics manufacturing in the North (Hanoi, Hai Phong), while the South (Ho Chi Minh City, Binh Duong, Dong Nai) diversifies between food, consumer goods and electronics.
This was stated by Cushman & Wakefield, one of the world's largest real estate services companies, in a recent report on Industrial Market Diversification and New Opportunities for Asia-Pacific Investors.
Cushman & Wakefield said that within the ASEAN region, Vietnam is rapidly establishing itself as a key growth hub, with high levels of foreign direct investment. This growth is particularly notable as US and European-based corporations expand and diversify their operations in the region, alongside the expansion of Chinese manufacturers.
The northern region of Vietnam, such as Hai Phong and Hanoi, has received great interest from Chinese and Korean manufacturers due to its geographical proximity and strong regional and global connectivity. However, to date, investment levels have remained modest and there has been no real shift of production to other countries.
For the Asia-Pacific region, Cushman & Wakefield said, the region has long considered itself the “factory of the world”, especially with the important role of mainland China. This country accounts for nearly 15% of global exports, has trade links with more than 200 markets globally and is the leading trading partner of more than 120 of them.
According to a report by Cushman & Wakefield, mainland China has made rapid progress in the manufacturing sector. Together with the "Made in China 2025" policy and a greater focus on sustainability, it has driven a clear shift to high-end manufacturing orders, helping mainland China take the lead in the production of electric vehicle batteries, photovoltaics and quantum sensors.
China's rapid growth, especially in the manufacturing of high-end goods, opens up opportunities for its regional neighbors.
The report also pointed out that this shift has a more obvious impact as China is expected to account for less than 50% of low-cost imports into the US by 2023, providing opportunities for Vietnam's exports to increase significantly./.
Mai Huong
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