Foreign firms expand investment in Vietnam despite covid-19 setback

Foreign companies including the Swedish-Swiss multinational food packaging and processing company, Tetra Pak continue to expand their businesses in Vietnam despite the country’s Covid-19 setbacks.

VN Express writes that several foreign companies such as Nestle and LG see Vietnam’s Covid-19 setbacks as temporary while their expansions are part of long-term visions because Vietnam is seen as a regional and global manufacturing hub.

Tetra Pak recently announced that the company will invest an additional EUR 5 million into its EUR 120 million packaging plant in the southern province of Binh Duong which will increase its capacity by 43 percent. 

According to CEO of Tetra Pak, Eliseo Barcas, the investment shows the company’s confidence in Vietnam’s post-pandemic recovery.

Asian Development Bank with headquarters in the Philippines and 31 field offices around the world to promote social and economic development in Asia, can also confirm that Vietnam remains an attractive destination for foreign firms despite the pandemic.

ADB’s country director for Vietnam, Andrew Jeffries, says to VN Express that the country’s Covid-19 setbacks have only seen some orders move to other countries and not companies.  

“Vietnam remains an attractive destination for foreign firms and would continue to benefit from the shift in global supply chains, U.S.-China tensions, and disruptions in manufacturing in some regions,” he adds.

About Gregers Møller

Editor-in-Chief • ScandAsia Publishing Co., Ltd. • Bangkok, Thailand

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