The Development of Vietnam's Industrial Clusters and new challenges in the post-COVID scenario

Abstract

Industrial Cluster plays a significant role in Vietnamese industrial development and economic restructuring. The formation and development of industrial clusters, export processing zones and industrial parks are a driving force of the country’s economic industrialization and modernization progress. They help in creating more jobs for workers, creating a culture for rapid technology transition, producing a variety of goods for domestic consumption and highly competitive export products, and creating conditions to attract a large amount of foreign investment capital for industrial development and socio-economic development in general. By the end of 2018, the country had 326 established industrial parks, with 249 already in operations attracting more than 15000 domestic and foreign investments projects with registered capital of US$42 billion domestic investment capital and more than US$145 billion foreign investments. The number of industrial zones in Vietnam continues to increase as foreign investment pours in. The Covid-19 has affected almost all corners of the world, the world may be seeing how Coronavirus could impact the global supply chain and disrupt manufacturing operations. Despite the limitations of resources, developing countries including Vietnam have faced many challenges in combating the pandemic. Vietnam has been considered an attractive and safe destination for foreign investors looking to relocate and diversify their operations thanks to its stable policy framework. Many industrial zones have been established across Vietnam which have contributed remarkably to the country’s industrialization process and economic development. Vietnam was looking relatively positive having attracted total registered capital of nearly US$20 billion in the first eight months of the year 2020.