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China Plus One

China Plus One

We have been hearing that Vietnam has been one of the biggest beneficiary, of many companies’ ‘China +1’ strategy post Covid. As part of their quest for building more resilience into their supply chains. Vietnam has obvious advantages in terms of firstly, proximity to the established ecosystems in China (for example, Hai Phong, the third largest city in Vietnam and a major port) is just about 550 miles away from Shenzhen), a highly competitive labour market compared to other ASEAN countries, a strong network of trade agreements and preferential industry-based tax incentives. The list goes on.

So, just wanted to take a quick look at the extent to which FDI investments in Vietnam has increased, post COVID. The chart shown below tells the story extremely well. According to the ‘Foreign Investment Agency (FIA) of Vietnam’, most of this investment is going into the Manufacturing sector, followed by Real Estate and Retail and Wholesale. #manufacturing #investment #vietnam #chinaplusone #covid #supplychains #resilience #supplychainresilience #supplychainstrategy