Positive statistics indicate that Vietnam is still one of the fastest growing and increase of production bases for manufacturing industry.
Mr. Duangdej Yuaikwarmdee, Deputy Managing Director and General Manager Vietnam of Reed Tradex Co., Ltd.said that according to Nguyen Van Sua, Vice Chairman of Vietnam Steel Association (VSA) said that market’s overall of domestic steel growth in March and the first quarter reached to 2.5 million tonnes, its 25 percent increase. Steel industry produced 2.7 million tonnes, up 17 percent over last year. More than half of the steel consumed 1.29 million tonnes, it was construction steel, which we can see a year-on-year increase of 10.5 percent. Construction steel sold in March hit to 651,633 tonnes, increasing 160 percent over last month and by 14.4 percent compared with the same period last year.
So the country's gross domestic product (GDP) edged up 6.03 percent in the first quarter, the industrial and construction sector posted growth of 8.25 percent. Also the Government has promulgated policies to support the country's economic development, including the property market, warming up the construction materials market and helping boost steel consumption.
And recently the erosion of foreign direct investment has influenced the administration to take actions in its institutional reforms in order to boost FDI growth, while also passing a decree to improve business environment and competitiveness in Vietnam. Favorable policies creates promising conditions to attract foreign enterprises to tap Vietnam’s emerging market as Mr. Nguyen Mai, Chairman of the Vietnam Association of Foreign Invested Enterprises (VAFIE) agrees, The confidence of foreign companies has grown. Moreover, recent survey carried out by Japan External Trade Organization (JETRO) also said that Japanese investors have great confidence about investing in Viet Nam, and expect to expand their businesses in the country.
Meanwhile according to Korea International Trade Association’s (KITA) survey conducted on 537 Korean businesses, Vietnam is the most preferred investment destination with 49% revealing their plans to expand business in Vietnam in 2015 after a free trade agreement (FTA) concluded between the two nations in December last year. South Korea stood the largest investor with a total of 4,063 operational projects valued at $36.71 billion by the end of 2014. Multinational giant such as Samsung invested $3 billion in new plants and complex, while Ilshin Co is pouring $117 million to its new production facility.
According to an article by Talk Vietnam, this year’s Vietnamese manufacturing industry regain its momentum with January’s 67.1% FDI increased, totaling $664 million as reported by the Foreign Investment Agency. Amongst 13 cities, Ho Chi Minh City reflects a high attractive foreign investment destination, with 23 projects worth of $347 million, representing 52.3% share.
As above positive statistics, it’s indicate that Vietnam is the one of the fastest growing and increase of production bases for manufacturing industry, In this October, METALEX Vietnam will again place technology owners to demonstrate widest range of tooling machinery and metalworking technologies and we believed that METALEX Vietnam can help them discover the right technology as machine tools and metalworking solutions providers of 500 brands from 25 countries will assemble once again at the show. There will be attracts to quality buyer more than 10,000 from across Vietnam.
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