I've personally worked in and out of Vietnam for a long time and people have always been very optimistic about the opportunities it presents. It hasn’t always been the easiest place to do business but it presents great opportunities as an alternative manufacturing site to China.
Jodi says the focus on supply chain relocation has been underway for about a decade – with the catalyst being increasing costs in China.
“Geopolitical tensions have accelerated that process, so too has the COVID-19 pandemic which increased the risk awareness of many multinationals,” she says.
Jodi explains the Vietnamese government has negotiated multiple free trade agreements (FTAs) which will significantly increase the nation’s gross domestic product over the next decade.
“Vietnam has been a massive beneficiary in terms of FTAs and tax incentives they're giving international companies to move here,” she says. “Vietnam is also a long, thin country with good access to export ports and shipping lanes.”
Jodi says the simplification of ANZ’s international strategy – to focus on being in the right markets at the right time with the right customers – has placed the bank well to succeed in the future.
“We're well placed to support our customers as they come into Vietnam and either expand existing operations or starting fresh,” she says. “One of our great advantages is our unique regional network - we're able to support customers in markets across the region.”
You can listen to the whole conversation in the podcast above.
Shayne Elliott is CEO of ANZ
Click here to browse through the full “World of Networks” series