Bloomberg Economics: Vietnam's manufacturing capacity is equivalent to China's

(NLDO)- According to Bloomberg Economics, Vietnam is a bright spot among emerging economies in terms of its ability to replace China in the global supply chain.

Avison Young Vietnam has just published the report "Vietnam Industrial Real Estate Outlook - Seizing the Opportunity", showing a bright picture of this market in the context of easing US-China trade tensions.

According to the assessment, the US reduction of reciprocal tariffs on Vietnamese exports to 20% has created a positive impact, while global trade flows continue to shift strongly. Chinese exports are shifting to Latin America, Europe and Africa, while Southeast Asian goods – especially Vietnamese goods – have grown significantly in the North American market.

Vietnam is also benefiting from major changes in legal, planning and development space after the merger of borders, making the investment environment more transparent and favorable. Export turnover in 10 months reached 391 billion USD, up 16.2% over the same period, showing stable FDI capital flows, especially in the processing and manufacturing industry group. This continues to be a "magnet" attracting global investment capital and a solid foundation to promote industrial real estate.

According to Bloomberg Economics’ Export Potential Index, Vietnam continues to stand out among the emerging economies that have the potential to replace China in the global supply chain. Although ranked behind India and the US, Vietnam scores higher than Indonesia, Malaysia and Thailand in terms of labor costs and investment attractiveness. In particular, Vietnam’s production and energy capacity are considered equivalent to China’s – a rare advantage in the region.

Vietnam industrial real estate: A bright spot to replace China

Vietnam also has the advantage of deep integration with 16 FTAs ​​in effect, covering 87% of the world economy. This helps "Made in Vietnam" goods easily access the global market and strongly attracts manufacturers to shift their supply chains.

Forecasting supply and demand, Avison Young believes that financial pressure and sustainable development requirements will force manufacturers to pay more attention to efficiency, flexibility and speed. Mr. Vu Minh Chi, Director of Industrial Park Services Department of Avison Young Vietnam, commented that in addition to traditional factors such as location, rental price or preferential policies, businesses are now more interested in legal services, customs and certificates of origin - to operate quickly and meet multi-market export standards.

The ready-built real estate segment such as factories, warehouses, cold storage, transit centers and last-mile delivery continues to record high demand. Logistics services are also increasingly professional, from import and export, inspection, labeling, packaging to customs procedures.

The increasingly detailed and specialized rental demand is pushing the market to shift from "quantity" to "quality". Many investors are not only developing basic infrastructure but also aiming for green industrial park models, integrated logistics, and ESG standards. In terms of location, land funds in free trade zones (FTZs), near deep-water ports or airports within 1-2 hours of travel are becoming the top priority for the new wave of investment.

Source: https://nld.com.vn/bloomberg-economics-vietnam-skills-equivalent-to-china-19625111713233989.htm