Vietnam emerges as strong manufacturing hub in Asia

QNN |

VOV.VN - Singaporean website futureiot.tech has recently published an article that highlights how over the past 15 years Vietnam has emerged as a strong manufacturing hub in the Asia-Pacific region.

Ho Chi Minh City ( Image by Quang Nguyen vinh from Pixabay)
Ho Chi Minh City ( Image by Quang Nguyen vinh from Pixabay)
 

In its Competitive Industrial Performance (CIP) Index 2020, the United Nations Industrial Development Organization (UNIDO) stated that Vietnam had climbed three places in the CIP index ranking 38rd in 2018 in a global index of 152 countries, compared to 41st position in 2017.

The report indicates that Vietnam’s CIP index has been on an upward trajectory since 1990. Indeed, the country is above the world average in all but two key performance indicators in terms of competitiveness, particularly with locally manufactured goods accounting for approximately 90% of national exports, way ahead of the 60% global average.

Despite this, the Vietnamese ranking in terms of the share of medium and high-tech activities in manufacturing indicates that there are signs of a slowdown ahead, falling one place to 40th in 2018.

The country’s global ranking in terms of the share of medium and high-tech activities in total manufacturing value added index only climbed a single place higher to reach 31st in 2018, according to the article.

The report by the Singaporean website outlines that Vietnam has kept its industrialisation process on track, pointing that in September of this year, the Vietnamese Government issued an action plan to implement Resolution No 23/NQ/TW, which sets out a national industrial policy to 2030, with a vision towards 2045.

This action plan has been designed to put the country in the top three leading industrialised economies in ASEAN, the 10-nation economic bloc of Southeast Asia.

Writing in Vietnam Briefing in October, Julia Nguyen indicated that the country appears to be well on track to achieving its goal of being among the top three ASEAN countries 10 years in the future.

Nguyen cited challenges that may lie ahead, such as a dependence on foreign imports that supply approximately 8% of raw materials, spare parts and components needed for production, even while Government policies and local manufacturers ramp up the development of support for key industries.

Although Nguyen believed that focusing on the country’s “tried and tested” sectors will hasten the process industrialisation, she added Vietnam should prepare for the implementation of Industry 4.0 technology to stay competitive.

“Industry 4.0 introduces technologies such as big data, cloud, Internet of Things (IoT), and many more technologies that promise to optimise production processes so that productivity and profits are increased,” she said.

Source: VOV/futureiot.tech