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Vietnam to become Asian production hub: experts

 Amidst escalating US-China trade tensions, Vietnam is expected to become a major Asian destination for foreign investors thanks to its location, policies and human resources, experts have said.

Speaking at the recent 7th International Precision Engineering, Machine Tools and Metalworking Exhibition & Conference (MTA Hanoi 2019) in Hanoi, Tee Boon Teong, General Director of Informa Markets in Vietnam, noted that foreign direct investment in Vietnam had exceeded 26 billion USD in the first nine months of this year.

The figure showed that Vietnam has become a major production hub in Asia, and a destination of choice for multi-national companies amidst investment shift and production expansion due to the prolonged US-China trade tensions, he said.

Executive Director of Global Economics and Market Research at Singapore’s United Overseas Bank (UOB) Suan Teck Kin said Vietnam is among the fastest growing economies in Southeast Asia. It is also an important strategic market for many businesses, including such firms like UOB.

He said the production sector in Vietnam is attractive for foreign firms despite challenges as they are trying to diversify their markets to minimize risks.

Commenting on foreign firms’ investments in Vietnam, Hans Kerstens, Head of Sales and Marketing at DEEP C Industrial Zones Vietnam, said that Vietnam is the second biggest open market in the world after Singapore as the country has signed a number of bilateral and multilateral free trade agreements.

This is one of the advantages Vietnam has to attract FDI, contributing to turning the country into a production hub in the region, he added./