China increases Vietnam investment to ride manufacturing wave

By Staff

Electronics OEM and contract electronics manufacturers are shifting manufacturing supply chains to avoid the effects of US-China trade tensions. This is being reflected in increased foreign direct investment (FDI) flows to Vietnam from late 2018 into 2019. (Related: Vietnam and South East Asia manufacturing resources page)

Noteworthy is that Chinese investors have ramped up their number of new projects by 53 percent YoY, faster than investors from Singapore (+25 percent YoY), Korea (+13 percent YoY) and Japan (+9 percent YoY).

Vietnam registration changes in number of FDI projects – top nations, and total

During the first half of 2019, China accounts for the largest share (23 percent) of FDI values registered in Vietnam.

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Several key manufacturing FDI projects noted that registered in Vietnam in 1Q19 included new factories and expansion of Meiko, New Wing Interconnect Technology Bac Giang (Foxconn), GoerTek, plus some other larger, and smaller contract EMS manufacturers.

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