Vietnam emerging as manufacturing base for S'pore firms
Vietnam emerging as manufacturing base for S'pore firms
Vietnam is emerging as an attractive base for manufacturers around the world, especially those from Singapore, said Douglas Foo, president of the Singapore Manufacturing Federation.
In a statement released by PR Newswire, Foo said that Singaporean firms have multiple opportunities to utilize Vietnam’s competitive advantage as a manufacturing location, and offer supporting services, like automation and logistics, to multinational corporations active in Vietnam.
Recently, Taiwan's Foxconn, one of the world's largest contract producers of electronics, established a factory in the Vietnam-Singapore Industrial Park in Bac Ninh Province, and it has just announced plans to build another US$40-million factory in the country.
According to the Ministry of Planning and Investment's Foreign Investment Agency, Singapore has consistently been among the top four foreign direct investment sources in Vietnam, with accumulative capital of US$49.1 billion by the first half of 2019.
As a result, the demand for ready-built factories and warehouses of Singaporean firms in Vietnam is high, according to BW Industrial Development JSC.
Singaporean companies are seeking to establish manufacturing operations in the country, particularly in the consumer goods, electronics, apparel, and food processing sectors.
"The blooming trend of shifting manufacturing to Vietnam is bringing many opportunities for industrial real estate developers like us. We acquired over 230 hectares of projects over the country in 2018, and will expand by another 170 hectares in 2019 to meet the rising demand from our customers," said Michael Chan, head of sales and marketing at BW Industrial Development JSC.
The developer said its main target is to build state-of-the-art industrial and logistics real estate infrastructure that is best suited to the ever-growing demand from multinationals, logistics providers, and e-commerce enterprises.
