Exciting developments in Southeast Asian manufacturing, Chinese companies are increasingly choosing Vietnam as their preferred production hub, according to recent SCMP reports.

China leads foreign investment in Vietnam with US$1.97 billion in new projects (29.7% of total investment) during H1 2024. Vietnam’s strategic advantages include a growing economy with pro-manufacturer policies, strategic location along the Chinese border, competitive labor costs and superior infrastructure compared to other emerging Asian manufacturing centers. The country has established 17 free trade agreements with 50 countries and notably maintains an absence of US trade war tensions.

As TCL Smart Device Vietnam’s GM Ding Wei notes, “Vietnam’s development momentum has been really strong in the past decade,” with advantages expected to continue improving over the next five years.

What’s particularly interesting is how manufacturers can leverage Vietnam’s 30% localization rate requirement, allowing companies to maintain partial production in China while accessing US markets without trade war tariffs.
Source: VoV Vietnam

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