Vietnam ‘highest vacation spot’ for relocation from China to Southeast Asia: WHA exec

Vietnam is the “best destination” for relocation from China to Southeast Asia amid the “trade war” (between China and the U.S.) starting in 2018, said WHA Corporation CEO and chairperson Jareeporn Jarukornsakul.

The executive of Thailand’s top indutrial park developer made the statement during a Thursday interview with CNBC’s Access ASEAN program.

WHA started investing in Vietnam in 2017 after thinking about investing in the country in 2016, but it had to “explore Vietnam many years” before, Jareeporn Jarukornsakul said, adding that the company is “doing a good job.”

Jarukornsakul highlighted labor as a core strength of Vietnam. Vietnam’s labor cost is “cheaper” than that in Thailand. The Vietnamese people are active and young, in comparison to Thailand, she noted.

When WHA attracts investments in digital and electronic sectors, Thailand does not have the labor force and such investments “should be moved to Vietnam,” Jarukornsakul said.

She emphasized Vietnam’s efforts to allure foreign investments. The authorities utilize government-to-government relations to attract big corporations. Meanwhile, the country’s “decentralized” power prompts localities to compete against each other to attract businesses to invest in their locations. “This is very interesting,” she said.

WHA Group’s industrial estate business in Vietnam currently has 3,650 hectares of operational and under-development industrial zones. This includes WHA Industrial Zone 1 in the central province of Nghe An, with two phases and a total area of 500 hectares. The facility is now operational.

WHA Industrial Zone 2, also in Nghe An, covers 189 hectares in phase 1 and is expected to receive project approval this year.

The company is also looking to expand with three new industrial zones in Thanh Hoa and Quang Nam provinces, covering a total area of 1,550 hectares.