Why more European firms are choosing Vietnam over China | World News,The Indian Express
A combination of geopolitical tensions and higher costs are pushing large firms to look for alternative production sites. Vietnam's strong economic performance in recent years has drawn the attention of European firms.
Vietnam was one of the few Asian countries that did not experience an economic contraction during the coronavirus pandemic in 2020 and 2021. This year, Vietnam’s GDP is expected to grow by around 5.5%, according to the World Bank.
Vietnam’s economic performance during and after the pandemic has captured the attention of some major European firms.
German automotive supplier Brose, which has 11 factories in China, is currently deciding between Thailand and Vietnam for a new production location.
In December, Denmark’s Lego announced it will build a $1 billion (€935 million) factory near the southern business hub Ho Chi Minh City, one of the largest European investment projects in Vietnam to date.
“It currently looks as if, in particular, medium-sized companies are increasingly striving to enter the Vietnam market or are putting their activities out of China on a broader basis,” said Daniel Müller, manager at the German Asia-Pacific Business Association.
Rating: 5