Viet Nam welcomes FDI in production of medical equipment: Trade officer

Update: 11:00 | 22/04/2021
Viet Nam has rolled out the red carpet for foreign investors, including those from ASEAN member states, to land investment in the field of advanced medical equipment, said Counselor Nguyen Manh Hung at the Vietnamese Embassy in Germany.
Viet Nam welcomes FDI in production of medical equipment: Trade officer
Counselor Nguyen Manh Hung from the Vietnamese Embassy in Germany. (Photo: VNA)

At a virtual conference held by Ernst & Young (EY) Global Limited, Hung said that ASEAN has produced a wide range of medical equipment, and 5-7 percent of the global equipment exports are sourced from ASEAN countries.

Viet Nam has a huge demand for medical equipment due to its rapidly aging population, he stressed, believing that a network between ASEAN member states should be established to enhance information exchange as well as cooperation in the field so as to ensure timely supply of medical equipment and pharmaceutical products.

At the event, which also aimed to promote trade and investment in consumer goods within the bloc, Hung highlighted the important role of Viet Nam’s garment and footwear in both domestic and export markets.

Despite the adverse impacts of COVID-19, Viet Nam’s exports of consumer products topped 100.3 billion USD in 2020, a year-on-year rise of 2.4 percent. Particularly, shipments of garment and footwear products accounted for 20 percent of the nation’s total export revenue in 2019.

Currently, Viet Nam is the fourth largest garment and textile exporter, and the second biggest source market of footwear. However, 80 percent of the leather shoes come from the FDI sector, Hung said.

As the COVID-19 pandemic has affected the supply of materials for the two production sectors, while global demand has declined sharply, Viet Nam is working to diversify its material supplies to reduce risks.

In a bid to enjoy tax preferences from free trade deals such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Europe-Viet Nam Free Trade Agreement (EVFTA), brands and suppliers in Viet Nam are using domestic materials.

According to Hai, with robust economic growth, ASEAN is both a large supplier of consumer products and a big market.

With increasing income, ASEAN consumers have preferred high-quality products, including garments and leather shoes; therefore, Viet Nam is striving to branch out the two sectors through developing transport and logistics infrastructure, he added.

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(Source: VNA)