Several foreign-invested firms have moved to increase recruitment of workers as they strive to meet the demand for production expansion and complete orders after a COVID-19 inflicted hiatus, according to industry insiders.
With the country’s rapid vaccination rate coupled with its strategy to flexibly adapt to the pandemic, local businesses’ production lines and supply chains are gradually gathering full steam.
During the opening two months of the year Vietnam remained an attractive destination for foreign enterprises, as foreign businesses poured approximately US$5 billion in the country, including US$1.3 billion in Bac Ninh Province.
By running three shifts a day, Bac Ninh-based Goertek Vietnam’s revenue increased by more than 20% over the same period last year.
To meet signed orders in the first quarter, the business has recruited thousands of employees, purchased more production lines, and expanded the factory scale with an investment of up to US$306 million, said Yoshinaga Kazuyosh, CEO of Goertek Vina.
Meanwhile, Samsung Vietnam last year earned US$74.2 billion in revenue, a year-on-year rise of 14% despite the adverse range of impacts caused by COVID-19 pandemic. Its factory in Bac Ninh Province alone brought in over US$40 billion.
The company has recruited over 2,400 highly-skilled engineers during the past two months to implement its expansion plan in the coming months.
Choi Joo Ho, general director of Samsung Vietnam, said the Ministry of Industry and Trade, Bac Ninh Province, and Samsung have all co-operated to help businesses participate deeply in supply chains.
The company will continue to upgrade and invest more in research and development to elevate its position in Vietnam, said Choi.
Since the beginning of the year, Bac Ninh has attracted more than US$1.3 billion in FDI, accounting for 26.5% of the country’s total FDI capital, representing a 7.6-fold increase against the same period from last year.
Representatives of the local authorities revealed that the province has primarily focused on attracting high-quality human resources in an effort to meet the needs of businesses moving forward.
In 2022, Vietnam is forecast to record growth at a significantly higher rate, partly thanks to the high vaccination rate that helped the country recovered most of its economic activity since late 2021.
The Vietnamese auto market will be busier when several foreign automobile companies invest in Vietnam.