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Despite the impact of COVID, Samsung Electric plans to raise the investment for Vietnamese factories.
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The country offers a lot of incentives for tech giants to set up shop there.
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Panasonic has moved its refrigerator and washing machine production to Vietnam from Thailand
The tech giant Samsung has already poured over $USD17.5 billion into infrastructure in Vietnam; currently Samsung’s devices and electronics make up roughly 20 per cent of the country’s total exports, while the tech company employees 170,000 Vietnamese workers.
This comes as border closures in Asia have forced Apple to start mass production of its latest AirPods in China, while also putting plans to move some of its iPad and MacBook production to Vietnam on hold.
Google will also be producing its Pixel 6 in China, instead of Vietnam.
Despite these setbacks, Panasonic has moved its refrigerator and washing machine production to Vietnam from Thailand.
Related: How to setup a factory in Vietnam as foreign investor
The country offers a lot of incentives for tech giants to set up shop there: it’s close to China, its industrial parks are cheap and already have government approval for expansion, and there is a large, young workforce.
The current US sanctions around China should only hasten the shift to Vietnam, the Channel News reported.
Vietnam raked in 16.7 billion USD in foreign direct investment (FDI) in the first seven months of 2021, down 11.1 percent from the same period last year, data from the Ministry of Planning and Investment (MPI) shows.
According to the MPI’s Foreign Investment Agency, of the 7-month figure, 10.13 billion USD came from 1,006 newly-registered projects, up 7 percent year-on-year.
Singapore topped foreign investors, pouring 5.92 billion USD into Vietnam, followed by Japan (2.54 billion USD), and the Republic of Korea (2.2 billion USD).
The Mekong Delta province of Long An was the largest recipient of FDI with 3.58 billion USD, followed by Ho Chi Minh City (1.78 billion USD) and Binh Duong (1.33 billion USD)