BW Industrial Development speculates trade war & the trend of shifting production to Vietnam
Manufacturers are diversifying away from China toward Vietnam, a lower-cost country, which has captured an additional $36bn of US import value, half of the $72bn lost by China
HO CHI MINH CITY, Vietnam, July 23, 2019 /PRNewswire/ -- According to leading for-rent industrial real estate developer - BW Industrial Development, Vietnam has quickly climbed the ranks to become a significant US trade partner. In the first quarter of this year, US imports of mobile phones from Vietnam more than doubled year-on-year, while imports from China contracted by 27 per cent, according to figures from the US International Trade Commission. Over the same period, US computer imports from Vietnam rose by 79 per cent, against a 13 per cent drop in Chinese imports.
Vietnamese imports into the US increased in garments, textiles, furniture and dried fish, which was previously processed in China for consumption in the US before Trump's tariffs hikes.
Vietnam has also steadily opened-up to foreign investors over the years to become a manufacturing hub in the region with many industrial queen bees like Intel, General Electric, Ford Motor, Nike setting up their factories there.
Early this year, TTI, Inc., a world-class leader in power tools from the US, expressed interest in developing a solar panel manufacturing plant in southern Vietnam. This movement has pushed their vendors to follow their footstep. According to BW Industrial Development JSC. BW has secured two of TTI' suppliers at My Phuoc 3 Industrial Park (IP) and is receiving more enquiries from these customers' group. International investors like TTI are creating a strong impulse to drive the development of the industrial real estate market across Vietnam.
Last year, GoerTek, the Shandong-based manufacturer of Apple's AirPods, announced it would move production of the wireless headphones to Vietnam, with chief executive citing the trade war as being behind his decision.
"The blooming trend of shifting manufacturing to Vietnam is bringing many opportunities for industrial real estate developers like us. We have acquired over 230 hectares of projects over the country in 2018 and will expand by another 170 hectares in 2019 to meet the rising call from our customers," said Michael Chan, Head of Sales and Marketing of BW.
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Photos: https://drive.google.com/drive/folders/1fctbuqVMaCDBbPOufgI9CsdzSVlKYWhE
SOURCE BW Industrial Development
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