Vietnam – An ideal destination for investors processing electronic equipment
In recent years, electronic products are becoming an indispensable part of daily lives, especially for countries with young populations like Vietnam. The use of electronic devices brings a lot of convenience as well as usefulness to make life simpler and easier than ever. Therefore, the electronics processing industry is receiving a great deal of interest from foreign businesses and the Vietnamese government is also investing heavily in this industry to make it become one of the main business in our country.
However, our country faces many major challenges in terms of development as the level of technology in the country is low and electronic products are mostly produced at the level of processing, which leads to businesses in our country not contributing much to the electronic supply chain. Therefore, the government has promulgated many preferential policies to encourage foreign electronic investors in Vietnam to provide opportunities for domestic enterprises to learn advanced techniques as well as attract foreign investment.
So what attracts foreign businesses to choose Vietnam as the ideal place to invest in production factory instead of other countries? Let’s take a closer look at some benefits that our country offers to investors processing electronic equipment when choosing Vietnam.
1. Young and abundant labor force
By the beginning of 2017, the population of Vietnam has reached more than 94 million people and ranked 14th in the list of the most populous countries in the world. Of which, more than 60% of the population is in working age (18 to 60), in other words, the average age of our country is only 30.8. This means that Vietnam has a very young and abundant labor force that can fully meet the recruitment needs of countries that intend to invest in electronic manufacturing here.
Moreover, compared to other countries in the same region, the wages of workers in Vietnam are relatively low. In particular, if we compare the cost of hiring workers in our country with other densely populated countries such as China or India, this figure is only one-third.
2. Diverse sources of materials
In addition to its young and potential workforce, Vietnam is also known for having the most diverse sources of natural materials such as titanium, rutin, iron ore, rare earth, etc., which are extremely necessary for the production of electronics equipment. Therefore, our country has full capacity to supply raw materials or finished products to the investors in the electronics industry when setting up the factory in Vietnam. Investors don’t have to import materials from other countries, which cost them too much transportation cost. This factor attracted many well-known brands of electronic products in the world who are having factories in Vietnam such as Samsung and LG.
3. Policies to support foreign enterprises
With the aim of encouraging foreign investors to invest in Vietnam, especially electronics processing industry, our country has implemented many policies to support the issuance of business licenses and investment registration certificate for foreign investors. This is one of the moves to show encouragement for businesses in countries around the world to invest in Vietnam. Legal procedures and regulations on the ownership of shares in our country in recent years have also been loosened quite a lot, creating more favorable conditions for investment of many foreign enterprises.
4. “Rental Serviced Factory” Model
In addition to the factors of policy, human resources and natural resources, the utility services also contributed to the investment decisions of many international enterprises. Most of all, the electronics industry requires a great deal of equipment, as well as modern and extensive infrastructure. However, they do not want to spend too much time and money on building and setting up new manufacturing factory, so one of the best options is to choose ready-built factory models with full utility services.
Understanding that, Kizuna JV Corporation – the pioneer of “Rental Serviced Factory” in Vietnam was born and brought a lot of benefits and convenience for foreign investors. Kizuna JV is not only a business that offers quality factories, but also one of the few units in Vietnam to support the administrative tasks needed, such as copying papers, legal support, environmental support, etc. for enterprises who want to invest in Vietnam. For example, the major materials suppliers of Samsung such as Itswell, which supplies electronics and LEDs, Cometech – the manufacturer of PE insulators have trusted and chose Kizuna to place their factories.
Through the above factors, it can be seen that Vietnam is currently an ideal destination for local and foreign enterprises who are planning to invest in electronics manufacturing industry.
By Marketing Department – Kizuna JV Corporation