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Vietnam is looking to work closely with foreign firms such as Samsung and Toyota to boost the supply of parts within the country, according to the Ministry of Industry and Trade. Vietnam aims for 6-6.5% GDP growth this year. Workers at a car factory in northern Viet Nam. The objective is to seek and connect domestic firms that can produce parts for industrial production to reduce the country's reliance on foreign supply In order for Viet Nam to realise its 6-6.5% GDP target this year, industrial sectors must boost industrial production by 7-8% The ministry is to provide domestic firms with the necessary support, especially for those in key industries, to join the supply chain Industrial Production in 2021 Ninh Thuan recorded the highest growth rate, followed by Dak Lak (23.8%), Gia Lai (20.5%), Hai Phong (18.2%), and Binh Phuoc (17.8%). Three factors helping Vietnam secure FDI inflows Low labour cost, favourable geographic location and the expansion of investment abroad are three key factors helping Viet Nam secure its foreign direct investment (FDI) attraction Factory wages in Viet Nam are about two-thirds below those in China, but the quality of the workforce is comparable Viet Nam has close geographic proximity to Asia's supply chains Also, Japan and the Republic of Korea (RoK) face structural issues that compel both countries to invest abroad - and Viet Nam is the most attractive destination in the region Factors that will support FDI inflows in 2022 The US Treasury Department and the State Bank of Viet Nam reached an agreement in July that removes the risk of Vietnam being labeled a currency manipulator in the future, which will give multinational companies more confidence to invest in the country Viet Nam's vaccination campaign once the Delta variant emerged gives foreign companies confidence that the government is committed to achieving a prudent balance between public health and economic health concerns in the "living with COVID-19" strategy Denmark's LEGO will invest US$1 billion in a factory in southern Viet Nam.

Full article in the link: https://vietnamnet.vn/en/vn-to-boost-domestic-supporting-industries-808279.html#inner-article

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