The lives of previously poor people in the northern provinces of Vietnam are being changed, for the better, due to incoming manufacturers in the global tech supply chain. They are committing to investing billions of dollars to set up operations. Manufacturers like Samsung Electronics, Nokia, Apple assembly partner Pegatron Corp. and Hon Hai Precision Industry Co.
This story is an example of how a powerful supply chain can totally alter a region and drastically improve the standard of living of the people.
The Bac Giang province was always one of the poorest regions in Vietnam until the global tech supply chain decided it was a good place to set up business. Foreign investment has doubled year on year even during 2020 and the coronavirus pandemic.
Today the per capita income for the Bac Giang region is forecast at $3000 for 2020 – over a 120% increase from 10 years ago.
Unemployment in the region is close to zero and the assembly line workers are earning a salary that is almost double to the nation’s average annual salary.
Manufacturers are moving away from China, as a base for business, due to the rising labour costs, the US-trade war and logistics vulnerabilities as a result of the pandemic. Vietnam implemented control measures early on with the virus, and as a result, they have only experienced 300 cases and not a single death.
Vietnam has become a very appealing location for manufacturers for the following reasons:
- They addressed and sorted out public debt
- Introduced measures to reduce the budget deficit
- Fought against corruption and delivered tangible results
- Improved governance
- Invested in infrastructure
- Made it easier to do business and allowed the public sector to flourish
- Introduced investor-friendly policies
- They promote tech start-ups
They moved the economy to focus on manufacturing and services which are both productive and lucrative industries. This caused the economic growth in 2019 estimated to be about 6.8%, which is over double the world average.
This economic growth has instilled confidence among investors overseas and made Vietnam one of the most popular destinations for companies looking to tap into cheaper labour.
Logistics Going Green
A logistics start-up has launched eco-friendly packaging that allows online retailers to minimize their impact on the environment with last-mile deliveries. The new packaging will offer the same quality, durability, and security everyone has come to expect with an added benefit of leaving minimal impact on the environment.
In South Africa alone, billions of plastic bags are discarded every year. Clinging to trees, spreading across fences, and filling up gutters. Sadly, the logistics industry also contributes to this single-use plastic wastefulness.
Many single-use plastic items are only used for a few minutes and outlive their users for hundreds of years. Being industry disruptors within the logistics field, the logistics start-up has the privilege to address this pressing concern and pilot their new sustainable paper packaging range, which includes mailing bags, envelopes and packaging tape ensuring tough tamperproof and trusted products.
There is no denying it anymore, single-use plastic is not sustainable. By adding this paper packaging option to last-mile delivery every fulfilment strategy can be environmentally sustainable and change the logistics industry altogether.
Abu Qir Port Project Contract Awarded to DEME
DEME, the dredging, offshore, environmental, and infrastructure service specialists, announced that at the end of last year it secured a large dredging contract for the Abu Qir port project in Egypt.
Described as the largest ever dredging and land reclamation contract in history, the project includes the reclamation of 1 000ha of new land, the deepening of the port’s approach channel to 23m and the dredging of a turning basin to 22m. More than 150-million cubic metres will be dredged.
This ambitious megaproject creates land for the expansion and further development of Abu Qir, which boasts an ancient history and is slated to become a bustling economic hub, supplementing nearby Alexandria, in Egypt.
DEME will deploy the world’s most powerful CSD (Cutter Suction Dredger) ‘Spartacus’ on the project.
The project’s preparation has already started, with the main works set to commence in early 2021. The project is set for completion in 2023.
“We are very proud to have secured our largest ever dredging and land reclamation contract to date, and to support the Arab Republic of Egypt in its ambitions to develop a world-class project,” says DEME CEO Luc Vandenbulcke.
Convergence Partners acquire CTrack
Technology investor Convergence Partners has entered into an agreement with Inseego to acquire 100% of Ctrack’s operations in Africa and the Middle East.
The transaction will be the maiden investment for its third fund, the Convergence Partners Digital Infrastructure Fund (CPDIF).
Ctrack is a telematics software-as-a-service digital infrastructure platform, providing fleet management, insurance and weather telematics solutions, as well as asset tracking products, to its subscribers in Africa and the Middle East.
Convergence Partners says the business’s Internet-of-Things (IoT) and data analytics capabilities are a key component of an emerging sector in Africa and the company is a good fit with CPDIF’s strategy of identifying high-growth market players that build digital infrastructure on the continent.